THE ALLSTATE ADVISOR VARIABLE ANNUITIES (ADVISOR, ADVISOR PLUS, ADVISOR PREFERRED) ALLSTATE LIFE INSURANCE COMPANY STREET ADDRESS: 5801 SW 6TH AVE., TOPEKA KS, 66606-0001 MAILING ADDRESS: P.O. BOX 758566, TOPEKA, KS 66675-8566 TELEPHONE NUMBER: 1-800-457-7617 FAX NUMBER: 1-785-228-4584 PROSPECTUS DATED MAY 1, 2010 - -------------------------------------------------------------------------------- Allstate Life Insurance Company ("Allstate Life") is offering the following individual and group flexible premium deferred variable annuity contracts (each, a "Contract"): . ALLSTATE ADVISOR . ALLSTATE ADVISOR PLUS . ALLSTATE ADVISOR PREFERRED This prospectus contains information about each Contract that you should know before investing. Please keep it for future reference. Not all Contracts may be available in all states or through your sales representative. Please check with your sales representative for details. Each Contract currently offers several investment alternatives ("investment alternatives"). The investment alternatives include up to 3 fixed account options ("Fixed Account Options"), depending on the Contract, and include 55* variable sub-accounts ("Variable Sub-Accounts") of the Allstate Financial Advisors Separate Account I ("Variable Account"). Each Variable Sub-Account invests exclusively in shares of the following funds ("Funds"): FIDELITY(R) VARIABLE INSURANCE PUTNAM VARIABLE TRUST (CLASS IB) PRODUCTS (SERVICE CLASS 2) VAN KAMPEN LIFE INVESTMENT TRUST FRANKLIN TEMPLETON VARIABLE INSURANCE (CLASS II) PRODUCTS TRUST (CLASS 2) THE UNIVERSAL INSTITUTIONAL FUNDS, LORD ABBETT SERIES FUND, INC. INC. (CLASS I & II) (CLASS VC) OPPENHEIMER VARIABLE ACCOUNT FUNDS (SERVICE SHARES) * Certain Variable Sub-Accounts may not be available depending on the date you purchased your Contract. Please see page 44-47 for information about Variable Sub-Account and/or Portfolio liquidations, mergers, closures and name changes. Each Fund has multiple investment Portfolios ("Portfolios"). Not all of the Funds and/or Portfolios, however, may be available with your Contract. You should check with your sales representative for further information on the availability of the Funds and/or Portfolios. Your annuity application will list all available Portfolios. FOR ALLSTATE ADVISOR PLUS CONTRACTS, EACH TIME YOU MAKE A PURCHASE PAYMENT, WE WILL ADD TO YOUR CONTRACT VALUE ("Contract Value") A CREDIT ENHANCEMENT ("Credit Enhancement") OF UP TO 5% (DEPENDING ON THE ISSUE AGE AND YOUR TOTAL PURCHASE PAYMENTS) OF SUCH PURCHASE PAYMENT. EXPENSES FOR THIS CONTRACT MAY BE HIGHER THAN A CONTRACT WITHOUT THE CREDIT ENHANCEMENT. OVER TIME, THE AMOUNT OF THE CREDIT ENHANCEMENT MAY BE MORE THAN OFFSET BY THE FEES ASSOCIATED WITH THE CREDIT ENHANCEMENT. We (Allstate Life) have filed a Statement of Additional Information, dated May 1, 2010, with the Securities and Exchange Commission ("SEC"). It contains more information about each Contract and is incorporated herein by reference, which means that it is legally a part of this prospectus. Its table of contents appears on page 93 of this prospectus. For a free copy, please write or call us at the address or telephone number above, or go to the SEC's Web site (http://www.sec.gov). You can find other information and documents about us, including documents that are legally part of this prospectus, at the SEC's Web site. 1 PROSPECTUS 2 PROSPECTUS
IMPORTANT THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THE SECURITIES NOTICES DESCRIBED IN THIS PROSPECTUS, NOR HAS IT PASSED ON THE ACCURACY OR THE ADEQUACY OF THIS PROSPECTUS. ANYONE WHO TELLS YOU OTHERWISE IS COMMITTING A FEDERAL CRIME. THE CONTRACTS MAY BE DISTRIBUTED THROUGH BROKER-DEALERS THAT HAVE RELATIONSHIPS WITH BANKS OR OTHER FINANCIAL INSTITUTIONS OR BY EMPLOYEES OF SUCH BANKS. HOWEVER, THE CONTRACTS ARE NOT DEPOSITS IN, OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, SUCH INSTITUTIONS OR ANY FEDERAL REGULATORY AGENCY. INVESTMENT IN THE CONTRACTS INVOLVES INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. THE CONTRACTS ARE NOT FDIC INSURED.TABLE OF CONTENTS - --------------------------------------------------------------------------------
PAGE ----------------------------------------- OVERVIEW ----------------------------------------- Important Terms 4 ----------------------------------------- Overview of Contracts 6 ----------------------------------------- The Contracts at a Glance 7 ----------------------------------------- How the Contracts Work 12 ----------------------------------------- Expense Table 13 ----------------------------------------- Financial Information 17 ----------------------------------------- CONTRACT FEATURES ----------------------------------------- The Contracts 17 ----------------------------------------- Purchases 20 ----------------------------------------- Contract Value 21 ----------------------------------------- Investment Alternatives 45 ----------------------------------------- The Variable Sub-Accounts 45 ----------------------------------------- The Fixed Account Options 51 ----------------------------------------- Transfers 55 ----------------------------------------- Expenses 57 ----------------------------------------- Access to Your Money 63 ----------------------------------------- Income Payments 64 ----------------------------------------- Death Benefits 73 ----------------------------------------- 3 PROSPECTUS
PAGE ----------------------------------------------------------- OTHER INFORMATION ----------------------------------------------------------- More Information 81 ----------------------------------------------------------- Taxes 84 ----------------------------------------------------------- Annual Reports and Other Documents 92 ----------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS 93 ----------------------------------------------------------- APPENDIX A - ALLSTATE ADVISOR CONTRACT COMPARISON CHART 94 ----------------------------------------------------------- APPENDIX B - MARKET VALUE ADJUSTMENT 96 ----------------------------------------------------------- APPENDIX C - CALCULATION OF INCOME PROTECTION BENEFIT 98 ----------------------------------------------------------- APPENDIX D - WITHDRAWAL ADJUSTMENT EXAMPLE - INCOME BENEFITS 99 ----------------------------------------------------------- APPENDIX E - WITHDRAWAL ADJUSTMENT EXAMPLE - DEATH BENEFITS 100 ----------------------------------------------------------- APPENDIX F - CALCULATION OF EARNINGS PROTECTION DEATH BENEFIT 101 ----------------------------------------------------------- APPENDIX G - WITHDRAWAL ADJUSTMENT EXAMPLE - TRUERETURN ACCUMULATION BENEFIT 103 ----------------------------------------------------------- APPENDIX H - SUREINCOME WITHDRAWAL BENEFIT OPTION CALCULATION EXAMPLES 104 ----------------------------------------------------------- APPENDIX I - SUREINCOME PLUS WITHDRAWAL BENEFIT OPTION CALCULATION EXAMPLES 106 ----------------------------------------------------------- APPENDIX J - SUREINCOME FOR LIFE WITHDRAWAL BENEFIT OPTION CALCULATION EXAMPLES 108 ----------------------------------------------------------- APPENDIX K - ACCUMULATION UNIT VALUES 112 ----------------------------------------------------------- IMPORTANT TERMS - -------------------------------------------------------------------------------- This prospectus uses a number of important terms that you may not be familiar with. The index below identifies the page that describes each term. The first use of each term in this prospectus appears in highlights.
PAGE ------------------------------------------------------------------- AB Factor 22 ------------------------------------------------------------------- Accumulation Benefit 23 ------------------------------------------------------------------- Accumulation Phase 12 ------------------------------------------------------------------- Accumulation Unit 17 ------------------------------------------------------------------- Accumulation Unit Value 17 ------------------------------------------------------------------- Allstate Life ("We") 81 ------------------------------------------------------------------- Annuitant 18 ------------------------------------------------------------------- Automatic Additions Program 20 ------------------------------------------------------------------- Automatic Portfolio Rebalancing Program 57 ------------------------------------------------------------------- Beneficiary 19 ------------------------------------------------------------------- Benefit Base (for the TrueReturn Accumulation Benefit Option) 23 ------------------------------------------------------------------- Benefit Base (for the SureIncome Withdrawal Benefit Option) 32 ------------------------------------------------------------------- Benefit Base (for the SureIncome Plus Withdrawal Benefit Option) 35 ------------------------------------------------------------------- Benefit Base (for the SureIncome For Life Withdrawal Benefit Option) 40 ------------------------------------------------------------------- Benefit Payment (for the SureIncome Withdrawal Benefit Option) 32 ------------------------------------------------------------------- Benefit Payment (for the SureIncome Plus Withdrawal Benefit Option) 35 ------------------------------------------------------------------- Benefit Payment (for the SureIncome For Life Withdrawal Benefit Option) 39 ------------------------------------------------------------------- Benefit Payment Remaining (for the SureIncome Withdrawal Benefit Option) 32 ------------------------------------------------------------------- Benefit Payment Remaining (for the SureIncome Plus Withdrawal Benefit Option) 35 ------------------------------------------------------------------- Benefit Payment Remaining (for the SureIncome For Life Withdrawal Benefit Option) 38 ------------------------------------------------------------------- Benefit Year (for the SureIncome Withdrawal Benefit Option) 32 ------------------------------------------------------------------- Benefit Year (for the SureIncome Plus Withdrawal Benefit Option) 35 ------------------------------------------------------------------- Benefit Year (for the SureIncome For Life Withdrawal Benefit Option) 38 ------------------------------------------------------------------- Co-Annuitant 18 ------------------------------------------------------------------- *Contract 17 ------------------------------------------------------------------- Contract Anniversary 8 ------------------------------------------------------------------- Contract Owner ("You") 17 ------------------------------------------------------------------- Contract Value 1 ------------------------------------------------------------------- Contract Year 9 ------------------------------------------------------------------- Credit Enhancement 1 ------------------------------------------------------------------- Dollar Cost Averaging Program 57 ------------------------------------------------------------------- Due Proof of Death 77 ------------------------------------------------------------------- Earnings Protection Death Benefit Option 75 ------------------------------------------------------------------- Enhanced Beneficiary Protection (Annual Increase) Option 75 ------------------------------------------------------------------- Excess of Earnings Withdrawal 76 ------------------------------------------------------------------- 4 PROSPECTUS
PAGE ---------------------------------------------------------------- Fixed Account Options 51 ---------------------------------------------------------------- Free Withdrawal Amount 61 ---------------------------------------------------------------- Funds 1 ---------------------------------------------------------------- Guarantee Option 71 ---------------------------------------------------------------- Guarantee Period Accounts 52 ---------------------------------------------------------------- Income Base 9 ---------------------------------------------------------------- Income Plan 64 ---------------------------------------------------------------- Income Protection Benefit Option 68 ---------------------------------------------------------------- In-Force Earnings 76 ---------------------------------------------------------------- In-Force Premium 76 ---------------------------------------------------------------- Investment Alternatives 45 ---------------------------------------------------------------- IRA Contract 9 ---------------------------------------------------------------- Issue Date 12 ---------------------------------------------------------------- Market Value Adjustment 11 ---------------------------------------------------------------- Maximum Anniversary Value 8 ---------------------------------------------------------------- Maximum Anniversary Value (MAV) Death Benefit Option 8 ---------------------------------------------------------------- Payout Phase 12 ---------------------------------------------------------------- Payout Start Date 63 ---------------------------------------------------------------- Portfolios 80 ---------------------------------------------------------------- Qualified Contract 17 ---------------------------------------------------------------- Retirement Income Guarantee Options 70 ---------------------------------------------------------------- Return of Premium Death Benefit 11 ---------------------------------------------------------------- Rider Anniversary 22 ---------------------------------------------------------------- Rider Application Date 8 ---------------------------------------------------------------- Rider Date (for the TrueReturn Accumulation Benefit Option) 23 ---------------------------------------------------------------- Rider Date (for the SureIncome Withdrawal Benefit Option) 32 ---------------------------------------------------------------- Rider Date (for the SureIncome Plus Withdrawal Benefit Option) 35 ---------------------------------------------------------------- Rider Date (for the SureIncome For Life Withdrawal Benefit Option) 39 ---------------------------------------------------------------- Rider Fee (for the TrueReturn Accumulation Benefit Option) 23 ---------------------------------------------------------------- Rider Fee (for the SureIncome Withdrawal Benefit Option) 32 ---------------------------------------------------------------- Rider Fee (for the SureIncome Plus Withdrawal Benefit Option) 35 ---------------------------------------------------------------- Rider Fee (for the SureIncome For Life Withdrawal Benefit Option) 39 ---------------------------------------------------------------- Rider Fee Percentage 57 ---------------------------------------------------------------- Rider Maturity Date 22 ---------------------------------------------------------------- Rider Period 8 ---------------------------------------------------------------- Rider Trade-In Option (for the TrueReturn Accumulation Benefit Option) 30 ---------------------------------------------------------------- Rider Trade-In Option (for the SureIncome Withdrawal Benefit Option) 34 ---------------------------------------------------------------- Right to Cancel 21 ----------------------------------------------------------------
PAGE ---------------------------------------------------------- SEC 51 ---------------------------------------------------------- Settlement Value 74 ---------------------------------------------------------- Spousal Protection Benefit (Co-Annuitant) Option 59 ---------------------------------------------------------- Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirements Accounts 59 ---------------------------------------------------------- Standard Fixed Account Option 52 ---------------------------------------------------------- SureIncome Covered Life 38 ---------------------------------------------------------- SureIncome Option Fee 60 ---------------------------------------------------------- SureIncome Plus Option 35 ---------------------------------------------------------- SureIncome Plus Option Fee 60 ---------------------------------------------------------- SureIncome Plus Withdrawal Benefit Option 35 ---------------------------------------------------------- SureIncome For Life Option 38 ---------------------------------------------------------- SureIncome For Life Option Fee 60 ---------------------------------------------------------- SureIncome For Life Withdrawal Benefit Option 38 ---------------------------------------------------------- SureIncome ROP Death Benefit 74 ---------------------------------------------------------- SureIncome Withdrawal Benefit Option 31 ---------------------------------------------------------- Systematic Withdrawal Program 64 ---------------------------------------------------------- Tax Qualified Contract 87 ---------------------------------------------------------- Transfer Period Accounts 25 ---------------------------------------------------------- Trial Examination Period 7 ---------------------------------------------------------- TrueBalance/SM/ Asset Allocation Program 49 ---------------------------------------------------------- TrueReturn/SM/ Accumulation Benefit Option 22 ---------------------------------------------------------- * In certain states a Contract may be available only as a group Contract. If you purchase a group Contract, we will issue you a certificate that represents your ownership and that summarizes the provisions of the group Contract. References to "Contract" in this prospectus include certificates, unless the context requires otherwise. References to "Contract" also include all three Contracts listed on the cover page of this prospectus, unless otherwise noted. However, we administer each Contract separately. 5 PROSPECTUS
PAGE -------------------------------------------------------------- Valuation Date 20 -------------------------------------------------------------- Variable Account 81 -------------------------------------------------------------- Variable Sub-Account 45 -------------------------------------------------------------- Withdrawal Benefit Factor (for the SureIncome Withdrawal Benefit Option) 32 -------------------------------------------------------------- Withdrawal Benefit Factor (For the SureIncome Plus Withdrawal Benefit Option) 36 -------------------------------------------------------------- Withdrawal Benefit Factor (for the SureIncome For Life Withdrawal Benefit Option) 38 -------------------------------------------------------------- Withdrawal Benefit Payout Phase (for the SureIncome Withdrawal Benefit Option) 31 -------------------------------------------------------------- Withdrawal Benefit Payout Phase (for the SureIncome Plus Withdrawal Benefit Option) 35 -------------------------------------------------------------- Withdrawal Benefit Payout Phase (for the SureIncome For Life Withdrawal Benefit Option) 37 -------------------------------------------------------------- Withdrawal Benefit Payout Start Date (for the SureIncome Withdrawal Benefit Option) 33 -------------------------------------------------------------- Withdrawal Benefit Payout Start Date (for the SureIncome Plus Withdrawal Benefit Option) 37 -------------------------------------------------------------- Withdrawal Benefit Payout Start Date (for the SureIncome For Life Withdrawal Benefit Option) 41 -------------------------------------------------------------- Withdrawal Benefit Option 31 -------------------------------------------------------------- Withdrawal Benefit Option Fee 60 -------------------------------------------------------------- OVERVIEW OF CONTRACTS - -------------------------------------------------------------------------------- The Contracts offer many of the same basic features and benefits.+ They differ primarily with respect to the charges imposed, as follows: .. The Allstate Advisor Contract has a mortality and expense risk charge of 1.10%, an administrative expense charge of 0.19%*, and a withdrawal charge of up to 7% with a 7-year withdrawal charge period; .. The Allstate Advisor Plus Contract offers Credit Enhancement of up to 5% on purchase payments, a mortality and expense risk charge of 1.40%, an administrative expense charge of 0.19%*, and a withdrawal charge of up to 8.5% with an 8-year withdrawal charge period; .. The Allstate Advisor Preferred Contract with 5-year Withdrawal Charge Option ("Package III") has a mortality and expense risk charge of 1.40%, an administrative expense charge of 0.19%*, and a withdrawal charge of up to 7% with a 5-year withdrawal charge period; .. The Allstate Advisor Preferred Contract with 3-year Withdrawal Charge Option ("Package II") has a mortality and expense risk charge of 1.50%, an administrative expense charge of 0.19%*, and a withdrawal charge of up to 7% with a 3-year withdrawal charge period; and .. The Allstate Advisor Preferred Contract with No Withdrawal Charge Option ("Package I") has a mortality and expense risk charge of 1.60%, an administrative expense charge of 0.19%*, and no withdrawal charges. Other differences among the Contracts relate to available Fixed Account Options. For a side-by-side comparison of these differences, please refer to Appendix A of this prospectus. + Some broker/dealers and banks may limit the purchase of optional benefits and may limit participation in certain programs. Your individual sales representative will describe any such limitations to you. * The administrative expense charge may be increased, but will never exceed 0.35%. Once your Contract is issued, we will not increase the administrative expense charge for your Contract. 6 PROSPECTUS THE CONTRACTS AT A GLANCE - -------------------------------------------------------------------------------- The following is a snapshot of the Contracts. Please read the remainder of this prospectus for more information. 7 PROSPECTUS
Flexible Payments WE ARE NO LONGER OFFERING NEW CONTRACTS. You can add to your Contract as often and as much as you like, but each subsequent payment must be at least $1,000 ($50 for automatic payments). We reserve the right to accept a lesser initial purchase payment amount for each Contract. We may limit the cumulative amount of purchase payments to a maximum of $1,000,000 in any Contract. For ALLSTATE ADVISOR PLUS CONTRACTS, each time you make a purchase payment, we will add to your Contract Value a Credit Enhancement of up to 5% of such purchase payment. - --------------------------------------------------------------------------------------------------------- Trial Examination Period You may cancel your Contract within 20 days of receipt or any longer period as your state may require ("Trial Examination Period"). Upon cancellation, we will return your purchase payments adjusted, to the extent federal or state law permits, to reflect the investment experience of any amounts allocated to the Variable Account, including the deduction of mortality and expense risk charges and administrative expense charges. If you cancel your Contract during the Trial Examination Period, the amount we refund to you will not include any Credit Enhancement. See "Trial Examination Period" for details. - --------------------------------------------------------------------------------------------------------- Expenses Each Portfolio pays expenses that you will bear indirectly if you invest in a Variable Sub-Account. You also will bear the following expenses: ALLSTATE ADVISOR CONTRACTS Annual mortality and expense risk charge equal to 1.10% of average daily net assets. Withdrawal charges ranging from 0% to 7% of purchase payments withdrawn. ALLSTATE ADVISOR PLUS CONTRACTS Annual mortality and expense risk charge equal to 1.40% of average daily net assets. Withdrawal charges ranging from 0% to 8.5% of purchase payments withdrawn. ALLSTATE ADVISOR PREFERRED CONTRACTS (WITH 5-YEAR WITHDRAWAL CHARGE OPTION) Annual mortality and expense risk charge equal to 1.40% of average daily net assets. Withdrawal charges ranging from 0% to 7% of purchase payments withdrawn. ALLSTATE ADVISOR PREFERRED CONTRACTS (WITH 3-YEAR WITHDRAWAL CHARGE OPTION) Annual mortality and expense risk charge equal to 1.50% of average daily net assets. Withdrawal charges ranging from 0% to 7% of purchase payments withdrawn.8 PROSPECTUS
ALLSTATE ADVISOR PREFERRED CONTRACTS (WITH NO WITHDRAWAL CHARGE OPTION) Annual mortality and expense risk charge equal to 1.60% of average daily net assets. No withdrawal charge. ALL CONTRACTS Annual administrative expense charge of 0.19% (up to 0.35% for future Contracts). Annual contract maintenance charge of $30 (waived in certain cases). If you select the Maximum Anniversary Value (MAV) Death Benefit Option ("MAV Death Benefit Option") you will pay an additional mortality and expense risk charge of 0.20%* (up to 0.30% for Options added in the future). If you select Enhanced Beneficiary Protection (Annual Increase) Option, you will pay an additional mortality and expense risk charge of 0.30%*. If you select the Earnings Protection Death Benefit Option you will pay an additional mortality and expense risk charge of 0.25% or 0.40% (up to 0.35% or 0.50% for Options added in the future) depending on the age of the oldest Owner and oldest Annuitant on the date we receive the completed application or request to add the benefit, whichever is later ("Rider Application Date"). If you select the TrueReturn/SM/ Accumulation Benefit Option ("TrueReturn Option") you would pay an additional annual fee ("Rider Fee") of 0.50% (up to 1.25% for Options added in the future) of the Benefit Base in effect on each Contract anniversary ("Contract Anniversary") during the Rider Period. You may not select the TrueReturn Option together with a Retirement Income Guarantee Option or any Withdrawal Benefit Option. If you select the SureIncome Option, you would pay an additional annual fee ("SureIncome Option Fee") of 0.50% of the Benefit Base on each Contract Anniversary (see the SureIncome Option Fee section). You may not select the SureIncome Option together with a Retirement Income Guarantee Option, a TrueReturn Option or any other Withdrawal Benefit Option. If you select the SureIncome Plus Withdrawal Benefit Option ("SureIncome Plus Option") you would pay an additional annual fee ("SureIncome Plus Option Fee") of 0.65% (up to 1.25% for Options added in the future) of the Benefit Base on each Contract Anniversary (see the SureIncome Plus Option Fee section). You may not select the SureIncome Plus Option together with a Retirement Income Guarantee Option, a TrueReturn Option or any other Withdrawal Benefit Option. If you select the SureIncome For Life Withdrawal Benefit Option ("SureIncome For Life Option") you would pay an additional annual fee ("SureIncome For Life Option Fee") of 0.65% (up to 1.25% for Options added in the future) of the Benefit Base on each Contract Anniversary (see the SureIncome For Life Option Fee section). You may not select the SureIncome For Life Option together with a Retirement Income Guarantee Option, a TrueReturn Option or any other Withdrawal Benefit Option. 9 PROSPECTUS
We discontinued offering Retirement Income Guarantee Option 1 ("RIG 1") as of January 1, 2004 (up to May 1, 2004 in certain states). If you elected RIG 1 prior to May 1, 2004, you will pay an additional annual fee ("Rider Fee") of 0.40%* of the Income Base in effect on a Contract Anniversary. We discontinued offering Retirement Income Guarantee Option 2 ("RIG 2") as of January 1, 2004 (up to May 1, 2004 in certain states). If you elected RIG 2 prior to May 1, 2004, you will pay an additional annual Rider Fee of 0.55%* of the Income Base in effect on a Contract Anniversary. If you select the Income Protection Benefit Option you will pay an additional mortality and expense risk charge of 0.50% (up to 0.75% for Options added in the future) during the Payout Phase of your Contract. If you select the Spousal Protection Benefit (Co-Annuitant) Option or Spousal Protection Benefit (Co-Annuitant Option for Custodial Individual Retirement Accounts ("CSP") you would pay an additional annual fee ("Rider Fee") of 0.10%** (up to 0.15% for Options added in the future) of the Contract Value ("Contract Value") on each Contract Anniversary. These Options are only available for certain types of IRA Contracts, which are Contracts issued with an Individual Retirement Annuity or Account ("IRA") under Section 408 of the Internal Revenue Code. The CSP is only available for certain Custodial Individual Retirement Accounts established under Section 408 of the Internal Revenue Code. For Contracts purchased on or after January 1, 2005, we may discontinue offering the Spousal Protection Benefit (Co-Annuitant) Option at any time prior to the time you elect to receive it.** ** NO RIDER FEE WAS CHARGED FOR THESE OPTIONS FOR CONTRACT OWNERS WHO ADDED THESE OPTIONS PRIOR TO JANUARY 1, 2005. SEE PAGE 15 FOR DETAILS. Transfer fee equal to 1.00% (subject to increase to up to 2.00%) of the amount transferred after the 12/th/ transfer in any Contract Year ("Contract Year"), which we measure from the date we issue your Contract or a Contract Anniversary. State premium tax (if your state imposes one) NOT ALL OPTIONS ARE AVAILABLE IN ALL STATES. WE MAY DISCONTINUE ANY OF THESE OPTIONS AT ANY TIME PRIOR TO THE TIME YOU ELECT TO RECEIVE IT. * DIFFERENT RATES APPLY TO CONTRACT OWNERS WHO ADDED THESE OPTIONS PRIOR TO MAY 1, 2003. SEE PAGE 14 FOR DETAILS. - --------------------------------------------------------------------------------- 10 PROSPECTUS
- ------------------------------------------------------------------------------------------------------- Investment Alternatives Each Contract offers several investment alternatives including: up to 3 Fixed Account Options that credit interest at rates we guarantee, and 55* Variable Sub-Accounts investing in Portfolios offering professional money management by these investment advisers: Fidelity Management & Research Company Franklin Advisers, Inc. Franklin Advisory Services, LLC Franklin Mutual Advisers, LLC Lord, Abbett & Co. LLC OppenheimerFunds, Inc. Putnam Investment Management, LLC Templeton Asset Management Ltd. Templeton Investment Counsel, LLC Van Kampen Asset Management Morgan Stanley Investment Management, Inc.** *Certain Variable Sub-Accounts may not be available depending on the date you purchased your Contract. Please see page 44-47 for information about Sub-Account and/or Portfolio liquidations, mergers, closures and name changes. **Morgan Stanley Investment Management Inc., the adviser to the UIF Portfolios, does business in certain instances using the name Van Kampen. NOT ALL FIXED ACCOUNT OPTIONS ARE AVAILABLE IN ALL STATES OR WITH ALL CONTRACTS. To find out current rates being paid on the Fixed Account Option(s), or to find out how the Variable Sub-Accounts have performed, please call us at 1-800-457-7617. - ------------------------------------------------------------------------------------------------------- Special Services For your convenience, we offer these special services: Automatic Portfolio Rebalancing Program Automatic Additions Program Dollar Cost Averaging Program Systematic Withdrawal Program TrueBalance/SM/ Asset Allocation Program - -------------------------------------------------------------------------------------------------------11 PROSPECTUS
- ------------------------------------------------------------------------------------------------- Income Payments You can choose fixed income payments, variable income payments, or a combination of the two. You can receive your income payments in one of the following ways (you may select more than one income plan): life income with guaranteed number of payments joint and survivor life income with guaranteed number of payments guaranteed number of payments for a specified period life income with cash refund joint life income with cash refund life income with installment refund joint life income with installment refund Prior to May 1, 2004, Allstate Life also offered two Retirement Income Guarantee Options that guarantee a minimum amount of fixed income payments you can receive if you elect to receive income payments. In addition, we offer an Income Protection Benefit Option that guarantees that your variable income payments will not fall below a certain level. - ------------------------------------------------------------------------------------------------- Death Benefits If you, the Annuitant, or Co-Annuitant die before the Payout Start Date, we will pay a death benefit subject to the conditions described in the Contract. In addition to the death benefit included in your Contract ("Return of Premium Death Benefit" or "ROP Death Benefit"), the death benefit options we currently offer include: MAV Death Benefit Option; Enhanced Beneficiary Protection (Annual Increase) Option; and Earnings Protection Death Benefit Option The SureIncome Plus Option and SureIncome For Life Option also include a death benefit option, the SureIncome Return of Premium Death Benefit, ("SureIncome ROP Death Benefit"). - ------------------------------------------------------------------------------------------------- Transfers Before the Payout Start Date, you may transfer your Contract Value among the investment alternatives, with certain restrictions. The minimum amount you may transfer is $100 or the amount remaining in the investment alternative, if less. The minimum amount that can be transferred into the Standard Fixed Account or Market Value Adjusted Account Options is $100. A charge may apply after the 12/th/ transfer in each Contract Year. - ------------------------------------------------------------------------------------------------- Withdrawals You may withdraw some or all of your Contract Value at any time during the Accumulation Phase and during the Payout Phase in certain cases. In general, you must withdraw at least $50 at a time. Withdrawals taken prior to the Payout Start Date are generally considered to come from the earnings in the Contract first. If the Contract is tax-qualified, generally all withdrawals are treated as distributions of earnings. Withdrawals of earnings are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty. A withdrawal charge and a Market Value Adjustment may also apply. If any withdrawal reduces your Contract Value to less than $1,000, we will treat the request as a withdrawal of the entire Contract Value, unless a Withdrawal Benefit Option is in effect under your Contract. Your Contract will terminate if you withdraw all of your Contract Value. - -------------------------------------------------------------------------------------------------HOW THE CONTRACTS WORK - -------------------------------------------------------------------------------- Each Contract basically works in two ways. First, each Contract can help you (we assume you are the "Contract Owner") save for retirement because you can invest in your Contract's investment alternatives and generally pay no federal income taxes on any earnings until you withdraw them. You do this during what we call the "Accumulation Phase" of the Contract. The Accumulation Phase begins on the date we issue your Contract (we call that date the "Issue Date") and continues until the Payout Start Date, which is the date we apply your money to provide income payments. During the Accumulation Phase, you may allocate your purchase payments to any combination of the Variable Sub-Accounts and/or Fixed Account Options. If you invest in a Fixed Account Option, you will earn a fixed rate of interest that we declare periodically. If you invest in any of the Variable Sub-Accounts, your investment return will vary up or down depending on the performance of the corresponding Portfolios. Second, each Contract can help you plan for retirement because you can use it to receive retirement income for life and/or for a pre-set number of years, by selecting one of the income payment options (we call these "Income Plans") described on page 63. You receive income payments during what we call the "Payout Phase" of the Contract, which begins on the Payout Start Date and continues until we make the last payment required by the Income Plan you select. During the Payout Phase, if you select a fixed income payment option, we guarantee the amount of your payments, which will remain fixed. If you select a variable income payment option, based on one or more of the Variable Sub-Accounts, the amount of your payments will vary up or down depending on the performance of the corresponding Portfolios. The amount of money you accumulate under your Contract during the Accumulation Phase and apply to an Income Plan will determine the amount of your income payments during the Payout Phase. The timeline below illustrates how you might use your Contract. [FLOW CHART] Other income payment options are also available. See "Income Payments." As the Contract Owner, you exercise all of the rights and privileges provided by the Contract. If you die, any surviving Contract Owner or, if there is none, the Beneficiary will exercise the rights and privileges provided by the Contract. See "The Contracts." In addition, if you die before the Payout Start Date, we will pay a death benefit to any surviving Contract Owner or, if there is none, to your Beneficiary. See "Death Benefits." Please call us at 1-800-457-7617 if you have any question about how the Contracts work. 12 PROSPECTUS EXPENSE TABLE - -------------------------------------------------------------------------------- THE TABLE BELOW LISTS THE EXPENSES THAT YOU WILL BEAR DIRECTLY OR INDIRECTLY WHEN YOU BUY A CONTRACT. THE TABLE AND THE EXAMPLES THAT FOLLOW DO NOT REFLECT PREMIUM TAXES THAT MAY BE IMPOSED BY THE STATE WHERE YOU RESIDE. FOR MORE INFORMATION ABOUT VARIABLE ACCOUNT EXPENSES, SEE "EXPENSES," BELOW. FOR MORE INFORMATION ABOUT PORTFOLIO EXPENSES, PLEASE REFER TO THE PROSPECTUSES FOR THE PORTFOLIOS. CONTRACT OWNER TRANSACTION EXPENSES Withdrawal Charge (as a percentage of purchase payments withdrawn)* * Each Contract Year, you may withdraw a portion of your purchase payments (and/or your earnings, in the case of Charitable Remainder Trusts) without incurring a withdrawal charge ("Free Withdrawal Amount"). See "Withdrawal Charges" for more information. ** Waived in certain cases. See "Expenses." *** Applies solely to the 13th and subsequent transfers within a Contract Year, excluding transfers due to dollar cost averaging and automatic portfolio rebalancing. We are currently assessing a transfer fee of 1.00% of the amount transferred, however, we reserve the right to raise the transfer fee to up to 2.00% of the amount transferred. VARIABLE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSET VALUE DEDUCTED FROM EACH VARIABLE SUB-ACCOUNT) If you select the basic Contract without any optional benefits, your Variable Account expenses would be as follows:
Number of Complete Years Since We Received the Purchase Payment Being Withdrawn/Applicable Charge: ----------------------------------------------------------------------------------------------------- Contract: 0 1 2 3 4 5 6 7 8+ Allstate Advisor 7% 7% 6% 5% 4% 3% 2% 0% 0% Allstate Advisor Plus 8.5% 8.5% 8.5% 7.5% 6.5% 5.5% 4% 2.5% 0% Allstate Advisor Preferred with: 5-Year Withdrawal Charge Option 7% 6% 5% 4% 3% 0% 3-Year Withdrawal Charge Option 7% 6% 5% 0% No Withdrawal Charge Option None All Contracts: Annual Contract Maintenance Charge $30** Transfer Fee up to 2.00% of the amount transferred*** * We reserve the right to raise the administrative expense charge to 0.35%. However, we will not increase the charge once we issue your Contract. Each Contract also offers optional riders that may be added to the Contract. For each optional rider you select, you would pay the following additional mortality and expense risk charge associated with each rider. MAV Death Benefit Option 0.20%* (up to 0.30% for Options added Enhanced Beneficiary Protection in the future) (Annual Increase) Option 0.30%* Earnings Protection Death Benefit 0.25% (up to 0.35% for Options added Option (issue age 0-70) in the future) Earnings Protection Death Benefit 0.40% (up to 0.50% for Options added Option (issue age 71-79) in the future) * For Contract Owners who added the MAV Death Benefit Option or Enhanced Beneficiary Protection (Annual Increase) Option prior to May 1, 2003, the additional mortality and expense risk charge associated with each Option is 0.15%. 13 PROSPECTUS
Mortality and Expense Administrative Total Variable Account Basic Contract (without any optional benefit) Risk Charge Expense Charge* Annual Expense - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor 1.10% 0.19% 1.29% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor Plus 1.40% 0.19% 1.59% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor Preferred (5- year Withdrawal Charge Option) 1.40% 0.19% 1.59% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor Preferred (3- year Withdrawal Charge Option) 1.50% 0.19% 1.69% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor Preferred (No Withdrawal Charge Option) 1.60% 0.19% 1.79% - ---------------------------------------------------------------------------------------------------------------------------- If you select the Options with the highest possible combination of mortality and expense risk charges, your Variable Account expenses would be as follows, assuming current expenses: * As described above the administrative expense charge and the mortality and expense charge for certain Options may be higher for future Contracts. However, we will not increase the administrative expense charge once we issue your Contract, and we will not increase the charge for an Option once we add the Option to your Contract. TRUERETURN/SM/ ACCUMULATION BENEFIT OPTION FEE (ANNUAL RATE AS A PERCENTAGE OF BENEFIT BASE ON EACH CONTRACT ANNIVERSARY)
Contract with the MAV Death Benefit Option, Enhanced Beneficiary Protection (Annual Increase) Option, and Earnings Mortality and Expense Administrative Total Variable Account Protection Death Benefit Option (issue age 71-79) Risk Charge* Expense Charge* Annual Expense - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor 2.00% 0.19% 2.19% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor Plus 2.30% 0.19% 2.49% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor Preferred (5- year Withdrawal Charge Option) 2.30% 0.19% 2.49% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor Preferred (3- year Withdrawal Charge Option) 2.40% 0.19% 2.59% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Advisor Preferred (No Withdrawal Charge Option) 2.50% 0.19% 2.69% - ---------------------------------------------------------------------------------------------------------------------------- * Up to 1.25% for Options added in the future. See "TrueReturn/SM/ Accumulation Benefit Option" for details. SUREINCOME WITHDRAWAL BENEFIT OPTION FEE (ANNUAL RATE AS A PERCENTAGE OF BENEFIT BASE ON EACH CONTRACT ANNIVERSARY)
TrueReturn/SM/ Accumulation Benefit Option 0.50%* -------------------------------------------------------------------- * Up to 1.25% for SureIncome Options added in the future. See "SureIncome Withdrawal Benefit Option" for details. SUREINCOME PLUS WITHDRAWAL BENEFIT OPTION FEE (ANNUAL RATE AS A PERCENTAGE OF BENEFIT BASE ON EACH CONTRACT ANNIVERSARY)
SureIncome Withdrawal Benefit Option 0.50%* -------------------------------------------------------------------- * Up to 1.25% for SureIncome Plus Options added in the future. See "SureIncome Plus Withdrawal Benefit Option" for details. SUREINCOME FOR LIFE WITHDRAWAL BENEFIT OPTION FEE (ANNUAL RATE AS A PERCENTAGE OF BENEFIT BASE ON EACH CONTRACT ANNIVERSARY)
SureIncome Plus Withdrawal Benefit Option 0.65%* -------------------------------------------------------------------- * Up to 1.25% for SureIncome For Life Options added in the future. See "SureIncome For Life Withdrawal Benefit Option" for details. RETIREMENT INCOME GUARANTEE OPTION FEE* If you selected RIG 1, you would pay a Rider Fee at the annual rate of 0.40%** of the Income Base in effect on a Contract Anniversary. If you selected RIG 2, you would pay an additional Rider Fee at the annual rate of 0.55%** of the Income Base in effect on a Contract Anniversary. See "Retirement Income Guarantee Options" for details. *We discontinued offering the Retirement Income Guarantee Options as of January 1, 2004 (up to May 1, 2004 in certain states). Fees shown apply to Contract Owners who selected an Option prior to January 1, 2004 (up to May 1, 2004 in certain states). ** For Contract Owners who added RIG 1 prior to May 1, 2003, the annual rate is 0.25%. For Contract Owners who added RIG 2 prior to May 1, 2003, the annual rate is 0.45%. SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION FEE (AS A PERCENTAGE OF CONTRACT VALUE ON EACH CONTRACT ANNIVERSARY)
SureIncome For Life Withdrawal Benefit Option 0.65%* -------------------------------------------------------------------- *Applies to Contract Owners who select the Option on or after January 1, 2005. Up to 0.15% for options added in the future. 14 PROSPECTUS
Spousal Protection Benefit (Co-Annuitant) Option 0.10%* -------------------------------------------------------------------- SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION FOR CUSTODIAL INDIVIDUAL RETIREMENT ACCOUNTS FEE (AS A PERCENTAGE OF CONTRACT VALUE ON EACH CONTRACT ANNIVERSARY) *Applies to Contract Owners who select the Option on or after January 1, 2005. Up to 0.15% for options added in the future. If you select the Spousal Protection Benefit (Co-Annuitant) Option or Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts on or after January 1, 2005, you will pay a Rider Fee at the annual rate of 0.10% of the Contract Value on each Contract Anniversary. We reserve the right to increase the annual Rider Fee to up to 0.15% of the Contract Value. If you selected either of these Options prior to January 1, 2005, there is no charge associated with your Option. See "Spousal Protection Benefit (Co-Annuitant) Option Fee and Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts Fee" for details. INCOME PROTECTION BENEFIT OPTION The Contracts are also available with the Income Protection Benefit Option. See "Income Payments - Income Protection Benefit Option," below, for a description of the Option. The charge for the Income Protection Benefit Option is currently 0.50% of the average daily net Variable Account assets supporting the variable income payments to which the Income Protection Benefit Option applies. The charge for the Income Protection Benefit Option applies during the Payout Phase. We reserve the right to raise the Income Protection Benefit Option charge to up to 0.75%. Once your Income Protection Benefit Option is in effect, however, we may not change the fee that applies to your Contract. See "Expenses - - Mortality and Expense Risk Charge," below, for details. PORTFOLIO ANNUAL EXPENSES - MINIMUM AND MAXIMUM The next table shows the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the time that you own the Contract. Advisers and/or other service providers of certain Portfolios may have agreed to waive their fees and/or reimburse Portfolio expenses in order to keep the Portfolios' expenses below specified limits. The range of expenses shown in this table does not show the effect of any such fee waiver or expense reimbursement. More detail concerning each Portfolio's fees and expenses appears in the prospectus for each Portfolio. PORTFOLIO ANNUAL EXPENSES
Spousal Protection Benefit (Co-Annuitant) Option 0.10%* -------------------------------------------------------------------- (1)Expenses are shown as a percentage of Portfolio average daily net assets (before any waiver or reimbursement) as of December 31, 2009 (except as otherwise noted). EXAMPLE 1 This Example is intended to help you compare the cost of investing in the Contracts with the cost of investing in other variable annuity contracts. These costs include Contract owner transaction expenses, Contract fees, Variable Account annual expenses, and Portfolio fees and expenses. The example shows the dollar amount of expenses that you would bear directly or indirectly if you: .. invested $10,000 in the Contract for the time periods indicated; .. earned a 5% annual return on your investment; .. surrendered your Contract, or you began receiving income payments for a specified period of less than 120 months, at the end of each time period; .. elected the MAV Death Benefit Option and the Enhanced Beneficiary Protection (Annual Increase) Option; .. elected the Earnings Protection Death Benefit Option (assuming issue age 71-79); .. elected the Spousal Protection Benefit (Co-Annuitant) Option; and .. elected the SureIncome Plus Withdrawal Benefit Option. 15 PROSPECTUS
Minimum Maximum ------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses/(1)/ (expenses that are deducted from Portfolio assets, which may include management fees, distribution and/or services (12b-1) fees, and other expenses) 0.35% 1.73% ------------------------------------------------------------------------------ THE EXAMPLE DOES NOT INCLUDE ANY TAXES OR TAX PENALTIES YOU MAY BE REQUIRED TO PAY IF YOU SURRENDER YOUR CONTRACT. The first line of the example assumes that the maximum fees and expenses of any of the Portfolios are charged. The second line of the example assumes that the minimum fees and expenses of any of the Portfolios are charged. Your actual expenses may be higher or lower than those shown below.
Allstate Advisor Preferred (with 5 Year Allstate Advisor Allstate Advisor Plus Withdrawal Charge Option) 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years - -------------------------------------------------------------------------------------------------------------------------- Costs Based on Maximum Annual Portfolio Expenses $1,145 $2,173 $3,131 $5,679 $1,301 $2,464 $3,468 $5,890 $1,174 $2,168 $3,172 $5,894 - -------------------------------------------------------------------------------------------------------------------------- Costs Based on Minimum Annual Portfolio Expenses $1,013 $1,789 $2,516 $4,584 $1,169 $2,085 $2,863 $4,831 $1,042 $1,788 $2,568 $4,835 - -------------------------------------------------------------------------------------------------------------------------- EXAMPLE 2 This Example uses the same assumptions as Example 1 above, except that it assumes you decided not to surrender your Contract, or you began receiving income payments for a specified period of at least 120 months, at the end of each time period.
Allstate Advisor Preferred Allstate Advisor Preferred (with 3-Year Withdrawal Charge Option) (with No Withdrawal Charge Option) 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years - -------------------------------------------------------------------------------------------------------- Costs Based on Maximum Annual Portfolio Expenses $1,183 $2,194 $2,958 $5,963 $598 $1,799 $3,005 $6,042 - -------------------------------------------------------------------------------------------------------- Costs Based on Minimum Annual Portfolio Expenses $1,051 $1,816 $2,357 $4,916 $467 $1,422 $2,407 $5,007 - --------------------------------------------------------------------------------------------------------
Allstate Advisor Preferred (with 5 Year Allstate Advisor Allstate Advisor Plus Withdrawal Charge Option) 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years - -------------------------------------------------------------------------------------------------------------------------- Costs Based on Maximum Annual Portfolio Expenses $550 $1,663 $2,791 $5,679 $578 $1,742 $2,915 $5,890 $579 $1,743 $2,917 $5,894 - -------------------------------------------------------------------------------------------------------------------------- Costs Based on Minimum Annual Portfolio Expenses $418 $1,279 $2,176 $4,584 $446 $1,362 $2,311 $4,831 $447 $1,363 $2,313 $4,835 - -------------------------------------------------------------------------------------------------------------------------- PLEASE REMEMBER THAT YOU ARE LOOKING AT EXAMPLES AND NOT A REPRESENTATION OF PAST OR FUTURE EXPENSES. YOUR RATE OF RETURN MAY BE HIGHER OR LOWER THAN 5%, WHICH IS NOT GUARANTEED. THE EXAMPLES DO NOT ASSUME THAT ANY PORTFOLIO EXPENSE WAIVERS OR REIMBURSEMENT ARRANGEMENTS ARE IN EFFECT FOR THE PERIODS PRESENTED. THE EXAMPLES REFLECT THE FREE WITHDRAWAL AMOUNTS, IF APPLICABLE, AND THE DEDUCTION OF THE ANNUAL CONTRACT MAINTENANCE CHARGE OF $30 EACH YEAR. THE ABOVE EXAMPLES ASSUME YOU HAVE SELECTED THE MAV DEATH BENEFIT OPTION AND THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, THE EARNINGS PROTECTION DEATH BENEFIT OPTION (ASSUMING THE OLDEST CONTRACT OWNER OR ANNUITANT IS AGE 71 OR OLDER, AND ALL ARE AGE 79 OR YOUNGER ON THE RIDER APPLICATION DATE), AND THE SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION AND THE SUREINCOME PLUS WITHDRAWAL BENEFIT OPTION. EXAMPLES FOR THE ALLSTATE ADVISOR PREFERRED CONTRACTS ASSUME THE ELECTION OF THE 5-YEAR WITHDRAWAL CHARGE OPTION. IF ANY OR ALL OF THESE FEATURES WERE NOT ELECTED, THE EXPENSE FIGURES SHOWN ABOVE WOULD BE SLIGHTLY LOWER. 16 PROSPECTUS
Allstate Advisor Preferred Allstate Advisor Preferred (with 3-Year Withdrawal Charge Option) (with No Withdrawal Charge Option) 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years - -------------------------------------------------------------------------------------------------------- Costs Based on Maximum Annual Portfolio Expenses $588 $1,769 $2,958 $5,963 $598 $1,799 $3,005 $6,042 - -------------------------------------------------------------------------------------------------------- Costs Based on Minimum Annual Portfolio Expenses $456 $1,391 $2,357 $4,916 $467 $1,422 $2,407 $5,007 - -------------------------------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- To measure the value of your investment in the Variable Sub-Accounts during the Accumulation Phase, we use a unit of measure we call the "Accumulation Unit." Each Variable Sub-Account has a separate value for its Accumulation Units we call "Accumulation Unit Value." Accumulation Unit Value is analogous to, but not the same as, the share price of a mutual fund. Accumulation Unit Values for the lowest and highest available combinations of Contract charges that affect Accumulation Unit Values for each Contract are shown in Appendix K of this prospectus. The Statement of Additional Information contains the Accumulation Unit Values for all other available combinations of Contract charges that affect Accumulation Unit Values for each Contract. THE CONTRACTS - -------------------------------------------------------------------------------- CONTRACT OWNER Each Contract is an agreement between you, the Contract Owner, and Allstate Life, a life insurance company. As the Contract Owner, you may exercise all of the rights and privileges provided to you by the Contract. That means it is up to you to select or change (to the extent permitted): .. the investment alternatives during the Accumulation and Payout Phases, .. the amount and timing of your purchase payments and withdrawals, .. the programs you want to use to invest or withdraw money, .. the income payment plan(s) you want to use to receive retirement income, .. the Annuitant (either yourself or someone else) on whose life the income payments will be based, .. the Beneficiary or Beneficiaries who will receive the benefits that the Contract provides when the last surviving Contract Owner or the Annuitant dies, and .. any other rights that the Contract provides, including restricting income payments to Beneficiaries. If you die, any surviving joint Contract Owner or, if none, the Beneficiary may exercise the rights and privileges provided to them by the Contract. If the sole surviving Contract Owner dies after the Payout Start Date, the Primary Beneficiary will receive any guaranteed income payments scheduled to continue. If the Annuitant dies prior to the Payout Start Date and the Contract Owner is a grantor trust not established by a business, the new Contract Owner will be the Beneficiary(ies). The Contract cannot be jointly owned by both a non-living person and a living person unless the Contract Owner(s) assumed ownership of the Contract as a Beneficiary(ies). The maximum age of any Contract Owner on the date we receive the completed application for each Contract is 90. If you select the Enhanced Beneficiary Protection (MAV) Option, the Enhanced Beneficiary Protection (Annual Increase) Option, or the Earnings Protection Death Benefit Option, the maximum age of any Contract Owner on the Rider Application Date is currently age 79. If you select the Spousal Protection Benefit (Co-Annuitant) Option or the Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts (CSP), the maximum age of any Contract Owner or beneficial owner for CSP on the Rider Application Date is currently age 90. If you select the SureIncome Withdrawal Benefit Option, the maximum age of any Contract Owner on the Rider Application Date is age 85. If you select the SureIncome Plus Withdrawal Benefit Option, the maximum age of any Contract Owner on the Rider Application Date is age 85. If you select the SureIncome For Life Withdrawal Benefit Option, the minimum and maximum ages of the oldest Contract Owner (oldest annuitant if Contract Owner is a non-living person) on the Rider Application Date are ages 50 and 79, respectively. The Contract can also be purchased as an IRA or TSA (also known as a 403(b)). The endorsements required to qualify these annuities under the Internal Revenue Code of 1986, as amended, ("Code") may limit or modify your rights and privileges under the Contract. We use the term "Qualified Contract" to refer to a Contract issued as an IRA, 403(b), or with a Qualified Plan. Except for certain retirement plans, you may change the Contract Owner at any time by written notice in a form satisfactory to us. Until we receive your written notice to change the Contract Owner, we are entitled to rely on the most recent information in our files. We will provide a change of ownership form to be signed by you and filed with us. Once we accept the change, the change will take effect as of the date you signed the request. We will not be liable for any payment or settlement made prior to accepting the change. Accordingly, if you wish to change the Contract Owner, you should deliver your written notice to us promptly. Each change is subject to any 17 PROSPECTUS payment we make or other action we take before we accept it. Changing ownership of this Contract may cause adverse tax consequences and may not be allowed under Qualified Contracts. Please consult with a competent tax advisor prior to making a request for a change of Contract Owner. ANNUITANT The Annuitant is the individual whose age determines the latest Payout Start Date and whose life determines the amount and duration of income payments (other than under Income Plan 3). You may not change the Annuitant at any time. You may designate a joint Annuitant, who is a second person on whose life income payments depend, at the time you select an Income Plan. Additional restrictions may apply in the case of Qualified Plans. The maximum age of the Annuitant on the date we receive the completed application for each Contract is age 90. If you select the Enhanced Beneficiary Protection (MAV) Death Benefit Option, Enhanced Beneficiary Protection (Annual Increase) Option or the Earnings Protection Death Benefit Option, the maximum age of any Annuitant on the Rider Application Date is age 79. If you select the Spousal Protection Benefit (Co-Annuitant) Option, the maximum age of any Annuitant on the Rider Application Date is age 90. If you select the Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts, the maximum age of any Annuitant on the Rider Application Date is age 90. If you select the Income Protection Benefit Option, the oldest Annuitant and joint Annuitant (if applicable) must be age 75 or younger on the Payout Start Date. If you select the SureIncome Withdrawal Benefit Option, the maximum age of any Annuitant on the Rider Application Date is age 85. If you select the SureIncome Plus Withdrawal Benefit Option, the maximum age of any Annuitant on the Rider Application Date is age 85. If you select the SureIncome For Life Withdrawal Benefit Option, the minimum and maximum ages of the oldest annuitant, if the Contract Owner is a non-living person, on the Rider Application Date are ages 50 and 79, respectively. If you select an Income Plan that depends on the Annuitant or a joint Annuitant's life, we may require proof of age and sex before income payments begin and proof that the Annuitant or joint Annuitant is still alive before we make each payment. CO-ANNUITANT SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION Contract Owners of IRA Contracts that meet the following conditions and that elect the Spousal Protection Benefit Option may name their spouse as a Co-Annuitant: .. the individually owned Contract must be either a traditional, Roth, or Simplified Employee Pension IRA; .. the Contract Owner must be age 90 or younger on the Rider Application Date; .. the Co-Annuitant must be age 79 or younger on the Rider Application Date; and .. the Co-Annuitant must be the sole Primary Beneficiary under the Contract. Under the Spousal Protection Benefit (Co-Annuitant) Option, the Co-Annuitant will be considered to be an Annuitant during the Accumulation Phase, except the Co-Annuitant will not be considered to be an Annuitant for purposes of determining the Payout Start Date or upon the death of the Co-Annuitant. You may change the Co-Annuitant to a new spouse only if you provide proof of remarriage in a form satisfactory to us. At any time, there may only be one Co-Annuitant under your Contract. See "Spousal Protection Benefit Option and Death of Co-Annuitant" for more information. SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION FOR CUSTODIAL INDIVIDUAL RETIREMENT ACCOUNTS. Contracts that meet the following conditions and that elect the Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts may name the spouse of the Annuitant as a Co-Annuitant: .. the beneficially owned Contract must be a Custodial traditional IRA, Custodial Roth IRA, or a Custodial Simplified Employee Pension IRA; .. the Annuitant must be the beneficial owner of the Custodial traditional IRA, Custodial Roth IRA, or Custodial Simplified Employee Pension IRA; .. the Co-Annuitant must be the legal spouse of the Annuitant and only one Co-Annuitant may be named; .. the Co-Annuitant must be the sole beneficiary of the Custodial traditional IRA, Custodial Roth IRA, or the Custodial Simplified Employee Pension IRA; .. the Annuitant must be age 90 or younger on the Rider Application Date; and .. the Co-Annuitant must be age 79 or younger on the Rider Application Date. Under the Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts, the Co-Annuitant will be considered to be an Annuitant during the Accumulation Phase, except the Co-Annuitant will not be considered to be an Annuitant for purposes of determining the Payout Start Date or upon the death of the Co-Annuitant. The Co-Annuitant 18 PROSPECTUS is not considered the beneficial owner of the Custodial Traditional IRA, Custodial Roth IRA, or the Custodial Simplified Employee Pension IRA. See "Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts and Death of Co-Annuitant" for more information. BENEFICIARY You may name one or more Primary and Contingent Beneficiaries when you apply for a Contract. The Primary Beneficiary is the person who may, in accordance with the terms of the Contract, elect to receive the death settlement ("Death Proceeds") or become the new Contract Owner pursuant to the Contract if the sole surviving Contract Owner dies before the Payout Start Date. A Contingent Beneficiary is the person selected by the Contract Owner who will exercise the rights of the Primary Beneficiary if all named Primary Beneficiaries die before the death of the sole surviving Contract Owner. You may change or add Beneficiaries at any time, unless you have designated an irrevocable Beneficiary. We will provide a change of Beneficiary form to be signed by you and filed with us. After we accept the form, the change of Beneficiary will be effective as of the date you signed the form. Until we accept your written notice to change a Beneficiary, we are entitled to rely on the most recent Beneficiary information in our files. We will not be liable for any payment or settlement made prior to accepting the change. Accordingly, if you wish to change your Beneficiary, you should deliver your written notice to us promptly. Each Beneficiary change is subject to any payment made by us or any other action we take before we accept the change. You may restrict income payments to Beneficiaries by providing us with a written request. Once we accept the written request, the restriction will take effect as of the date you signed the request. Any restriction is subject to any payment made by us or any other action we take before we accept the request. If you did not name a Beneficiary or, unless otherwise provided in the Beneficiary designation, if a named Beneficiary is no longer living and there are no other surviving Primary or Contingent Beneficiaries when the sole surviving Contract Owner dies, the new Beneficiary will be: .. your spouse or, if he or she is no longer alive, .. your surviving children equally, or if you have no surviving children, .. your estate. If more than one Beneficiary survives you (or the Annuitant, if the Contract Owner is a grantor trust), we will divide the Death Proceeds among the surviving Beneficiaries according to your most recent written instructions. If you have not given us written instructions in a form satisfactory to us, we will pay the Death Proceeds in equal amounts to the surviving Beneficiaries. If there is more than one Beneficiary in a class (e.g., more than one Primary Beneficiary) and one of the Beneficiaries predeceases the Contract Owner (the Annuitant if the Contract Owner is a grantor trust), the remaining Beneficiaries in that class will divide the deceased Beneficiary's share in proportion to the original share of the remaining Beneficiaries. For purposes of this Contract, in determining whether a living person, including a Contract Owner, Primary Beneficiary, Contingent Beneficiary, or Annuitant ("Living Person A") has survived another living person, including a Contract Owner, Primary Beneficiary, Contingent Beneficiary, or Annuitant ("Living Person B"), Living Person A must survive Living Person B by at least 24 hours. Otherwise, Living Person A will be conclusively deemed to have predeceased Living Person B. Where there are multiple Beneficiaries, we will only value the Death Proceeds at the time the first Beneficiary submits the necessary documentation in good order. Any Death Proceeds amounts attributable to any Beneficiary which remain in the Variable Sub-Accounts are subject to investment risk. If there is more than one Beneficiary taking shares of the Death Proceeds, each Beneficiary will be treated as a separate and independent owner of his or her respective share of the Death Proceeds. Each Beneficiary will exercise all rights related to his or her share of the Death Proceeds, including the sole right to select a death settlement option, subject to any restrictions previously placed upon the Beneficiary. Each Beneficiary may designate a Beneficiary(ies) for his or her respective share, but that designated Beneficiary(ies) will be restricted to the death settlement option chosen by the original Beneficiary. If there is more than one Beneficiary and one of the Beneficiaries is a corporation, trust or other non-living person, all Beneficiaries will be considered to be non-living persons. MODIFICATION OF THE CONTRACT Only an Allstate Life officer may approve a change in or waive any provision of the Contract. Any change or waiver must be in writing. None of our agents has the authority to change or waive the provisions of the Contract. We may not change the terms of the Contract without your consent, except to conform the Contract to applicable law or changes in the law. If a provision of the Contract is inconsistent with state law, we will follow state law. ASSIGNMENT You may not assign an interest in this Contract as collateral or security for a loan. However, you may assign periodic income payments under this Contract prior to the Payout Start Date. No Beneficiary may assign benefits under the Contract until they are due. We will not be bound by any assignment until the assignor signs 19 PROSPECTUS it and files it with us. We are not responsible for the validity of any assignment. Federal law prohibits or restricts the assignment of benefits under many types of retirement plans and the terms of such plans may themselves contain restrictions on assignments. An assignment may also result in taxes or tax penalties. You should consult with an attorney before trying to assign periodic income payments under your Contract. PURCHASES - -------------------------------------------------------------------------------- The minimum initial purchase payment for Non- Qualified Contracts is $10,000, ($2,000 for Contracts issued with an IRA or TSA). All subsequent purchase payments under a Contract must be $1,000 or more ($50 for automatic payments). For Allstate Advisor Plus Contracts, purchase payments do not include any Credit Enhancements. You may make purchase payments at any time prior to the Payout Start Date; however, any additional payments after the initial purchase payment may be limited in some states. Please consult with your representative for details. The total amount of purchase payments we will accept for each Contract without our prior approval is $1,000,000. We reserve the right to accept a lesser initial purchase payment amount or lesser subsequent purchase payment amounts. We reserve the right to limit the availability of the investment alternatives for additional investments. We also reserve the right to reject any application. We may apply certain limitations, restrictions, and/or underwriting standards as a condition of acceptance of purchase payments. AUTOMATIC ADDITIONS PROGRAM You may make subsequent purchase payments of $50 or more per month by automatically transferring money from your bank account. Please consult with your sales representative for detailed information. The Automatic Additions Program is not available for making purchase payments into the Dollar Cost Averaging Fixed Account Option. ALLOCATION OF PURCHASE PAYMENTS At the time you apply for a Contract, you must decide how to allocate your purchase payment among the investment alternatives. The allocation you specify on your application will be effective immediately. All allocations must be in whole percents that total 100% or in whole dollars. You can change your allocations by calling us at 1-800-457-7617. We will allocate your purchase payments to the investment alternatives according to your most recent instructions on file with us. Unless you notify us otherwise, we will allocate subsequent purchase payments according to the allocation for the previous purchase payment. We will effect any change in allocation instructions at the time we receive written notice of the change in good order. We will credit the initial purchase payment that accompanies your completed application to your Contract within 2 business days after we receive the payment at our home office. If your application is incomplete, we will ask you to complete your application within 5 business days. If you do so, we will credit your initial purchase payment to your Contract within that 5 business day period. If you do not, we will return your purchase payment at the end of the 5 business day period unless you expressly allow us to hold it until you complete the application. We will credit subsequent purchase payments to the Contract at the close of the business day on which we receive the purchase payment at our home office. We use the term "business day" to refer to each day Monday through Friday that the New York Stock Exchange is open for business. We also refer to these days as "Valuation Dates." Our business day closes when the New York Stock Exchange closes for regular trading, usually 4:00 p.m. Eastern Time (3:00 p.m. Central Time). If we receive your purchase payment after 3:00 p.m. Central Time on any Valuation Date, we will credit your purchase payment using the Accumulation Unit Values computed on the next Valuation Date. There may be circumstances where the New York Stock Exchange is open, however, due to inclement weather, natural disaster or other circumstances beyond our control, our offices may be closed or our business processing capabilities may be restricted. Under those circumstances, your Contract Value may fluctuate based on changes in the Accumulation Unit Values, but you may not be able to transfer Contract Value, or make a purchase or redemption request. With respect to any purchase payment that is pending investment in our Variable Account, we may hold the amount temporarily in a suspense account and may earn interest on amounts held in that suspense account. You will not be credited with any interest on amounts held in that suspense account. CREDIT ENHANCEMENT For ALLSTATE ADVISOR PLUS CONTRACTS, each time you make a purchase payment, we will add to your Contract Value a Credit Enhancement equal to 4% of the purchase payment if the oldest Contract Owner and oldest Annuitant are age 85 or younger on the date we receive the completed application for the Contract ("Application Date"). If the oldest Contract Owner or oldest Annuitant is age 86 or older and both are 90 or younger on the Application Date, we will add to your Contract Value a Credit Enhancement equal to 2% of the purchase payment. An additional Credit 20 PROSPECTUS Enhancement will be added to your Contract if the cumulative purchase payments (including the purchase payment being made) less cumulative withdrawals exceed a certain threshold. The thresholds apply individually to each Allstate Advisor Plus Contract you own. The additional Credit Enhancements and their corresponding thresholds are as follows: If you exercise your right to cancel the Contract during the Trial Examination Period, the amount we refund to you will not include any Credit Enhancement. See "Trial Examination Period" below for details. The ALLSTATE ADVISOR PLUS CONTRACT may not be available in all states. We will allocate any Credit Enhancements to the investment alternatives according to the allocation instructions you have on file with us at the time we receive your purchase payment. We will allocate each Credit Enhancement among the investment alternatives in the same proportions as the corresponding purchase payment. We do not consider Credit Enhancements to be investments in the Contract for income tax purposes. We use a portion of the withdrawal charge and mortality and expense risk charge to help recover the cost of providing the Credit Enhancement under the Contract. See "Expenses." Under certain circumstances (such as a period of poor market performance) the cost associated with the Credit Enhancement may exceed the sum of the Credit Enhancement and any related earnings. You should consider this possibility before purchasing the Contract. TRIAL EXAMINATION PERIOD You may cancel your Contract by providing us with written notice within the Trial Examination Period, which is the 20 day period after you receive the Contract, or such longer period that your state may require. If you exercise this "Right to Cancel," the Contract terminates and we will pay you the full amount of your purchase payments allocated to the Fixed Account. We also will return your purchase payments allocated to the Variable Account adjusted, to the extent federal or state law permits, to reflect investment gain or loss, including the deduction of mortality and expense risk charges and administrative expense charges, that occurred from the date of allocation through the date of cancellation. If your Contract is qualified under Code Section 408(b), we will refund the greater of any purchase payments or the Contract Value. For ALLSTATE ADVISOR PLUS CONTRACTs, we have received regulatory relief to enable us to recover the amount of any Credit Enhancement applied to Contracts that are cancelled during the Trial Examination Period. The amount we return to you upon exercise of this Right to Cancel will not include any Credit Enhancement or the amount of charges deducted prior to cancellation, but will reflect, except in states where we are required to return the amount of your purchase payments, any investment gain or loss associated with your Variable Account purchase payments and with the full amount of the Credit Enhancement, including the deduction of mortality and expense risk charges and administrative expense charges. We reserve the right to allocate your purchase payments to the Putnam VT Money Market - Class IB Sub-Account during the Trial Examination Period. For Contracts purchased in California by persons age 60 and older, you may elect to defer until the end of the Trial Examination Period allocation of your purchase payment to the Variable Sub-Accounts. Unless you instruct otherwise, upon making this election, your purchase payment will be allocated to the Putnam VT Money Market - Class IB Sub-Account. On the next Valuation Date 40 days after the Issue Date, your Contract Value will then be reallocated in accordance with your most recent investment allocation instructions. State laws vary and may require a different period, other variations or adjustments. Please refer to your Contract for any state specific information. CONTRACT VALUE - -------------------------------------------------------------------------------- On the Issue Date, the Contract Value is equal to your initial purchase payment (for ALLSTATE ADVISOR PLUS CONTRACTS, your initial purchase payment plus the Credit Enhancement). Thereafter, your Contract Value at any time during the Accumulation Phase is equal to the sum of the value of your Accumulation Units in the Variable Sub-Accounts you have selected, plus your value in the Fixed Account Option(s) offered by your Contract. ACCUMULATION UNITS To determine the number of Accumulation Units of each Variable Sub-Account to allocate to your Contract, we divide (i) the amount of the purchase payment or transfer you have allocated to a Variable Sub-Account by (ii) the Accumulation Unit Value of that Variable Sub-Account next computed after we receive your payment or transfer. For example, if we receive a $10,000 purchase payment allocated to a Variable Sub-Account when the Accumulation Unit Value for the Sub-Account is $10, we would credit 1,000 Accumulation Units of that Variable Sub-Account to your Contract. For ALLSTATE ADVISOR 21 PROSPECTUS
ADDITIONAL CREDIT CUMULATIVE PURCHASE ENHANCEMENT FOR LARGE PAYMENTS LESS CUMULATIVE CONTRACTS WITHDRAWALS MUST EXCEED: 0.50% of the purchase payment $ 500,000 1.00% of the purchase payment $1,000,000 PLUS CONTRACTS, we would credit your Contract additional Accumulation Units of the Variable Sub-Account to reflect the Credit Enhancement paid on your purchase payment. See "Credit Enhancement." Withdrawals and transfers from a Variable Sub-Account would, of course, reduce the number of Accumulation Units of that Sub-Account allocated to your Contract. ACCUMULATION UNIT VALUE As a general matter, the Accumulation Unit Value for each Variable Sub-Account for each Contract will rise or fall to reflect: .. changes in the share price of the Portfolio in which the Variable Sub-Account invests, and .. the deduction of amounts reflecting the mortality and expense risk charge, administrative expense charge, and any provision for taxes that have accrued since we last calculated the Accumulation Unit Value. We determine any applicable withdrawal charges, Rider Fees (if applicable), transfer fees, and contract maintenance charges separately for each Contract. They do not affect the Accumulation Unit Value. Instead, we obtain payment of those charges and fees by redeeming Accumulation Units. For details on how we compute Accumulation Unit Values, please refer to the Statement of Additional Information. We determine a separate Accumulation Unit Value for each Variable Sub-Account for each Contract on each Valuation Date. We also determine a separate set of Accumulation Unit Values that reflect the cost of each optional benefit, or available combination thereof, offered under the Contract. YOU SHOULD REFER TO THE PROSPECTUSES FOR THE FUNDS FOR A DESCRIPTION OF HOW THE ASSETS OF EACH PORTFOLIO ARE VALUED, SINCE THAT DETERMINATION DIRECTLY BEARS ON THE ACCUMULATION UNIT VALUE OF THE CORRESPONDING VARIABLE SUB-ACCOUNT AND, THEREFORE, YOUR CONTRACT VALUE. TRUERETURN/SM/ ACCUMULATION BENEFIT OPTION We offer the TrueReturn/SM/ Accumulation Benefit Option, which is available for an additional fee. The TrueReturn Option guarantees a minimum Contract Value on the "Rider Maturity Date." The Rider Maturity Date is determined by the length of the Rider Period which you select. The Option provides no minimum Contract Value if the Option terminates before the Rider Maturity Date. See "Termination of the TrueReturn Option" below for details on termination. The TrueReturn Option is available at issue of the Contract, or may be added later, subject to availability and issue requirements. You may not add the TrueReturn Option to your Contract after Contract issue without our prior approval if your Contract Value is greater than $1,000,000 at the time you choose to add the TrueReturn Option. Currently, you may have only one TrueReturn Option in effect on your Contract at one time. You may only have one of the following in effect on your Contract at the same time: a TrueReturn Option, a Retirement Income Guarantee Option or a Withdrawal Benefit Option. The TrueReturn Option has no maximum issue age, however the Rider Maturity Date must occur before the latest Payout Start Date, which is the later of the Annuitant's 99th birthday or the 10th Contract Anniversary. Once added to your Contract, the TrueReturn Option may be cancelled at any time on or after the 5th Rider Anniversary by notifying us in writing in a form satisfactory to us. The "Rider Anniversary" is the anniversary of the Rider Date. We reserve the right to extend the date on which the TrueReturn Option may be cancelled to up to the 10th Rider Anniversary at any time in our sole discretion. Any change we make will not apply to a TrueReturn Option that was added to your Contract prior to the implementation date of the change. When you add the TrueReturn Option to your Contract, you must select a Rider Period and a Guarantee Option. The Rider Period and Guarantee Option you select determine the AB Factor, which is used to determine the Accumulation Benefit, described below. The "Rider Period" begins on the Rider Date and ends on the Rider Maturity Date. The "Rider Date" is the date the TrueReturn Option was made a part of your Contract. We currently offer Rider Periods ranging from 8 to 20 years depending on the Guarantee Option you select. You may select any Rider Period from among those we currently offer, provided the Rider Maturity Date occurs prior to the latest Payout Start Date. We reserve the right to offer additional Rider Periods in the future, and to discontinue offering any of the Rider Periods at any time. Each Model Portfolio Option available under a Guarantee Option has specific investment requirements that are described in the "Investment Requirements" section below and may depend upon the Rider Date of your TrueReturn Option. We reserve the right to offer additional Guarantee Options in the future, and to discontinue offering any of the Guarantee Options at any time. After the Rider Date, the Rider Period and Guarantee Option may not be changed. The TrueReturn Option may not be available in all states. We may discontinue offering the TrueReturn Option at any time to new Contract Owners and to existing Contract Owners who did not elect the Option prior to the date of discontinuance. ACCUMULATION BENEFIT. On the Rider Maturity Date, if the Accumulation Benefit is greater than the Contract Value, then the Contract Value will be increased to equal the Accumulation Benefit. The excess amount of any such increase will be allocated to the Putnam VT Money Market - Class IB Sub-Account. You may transfer the excess amount out of the Putnam VT Money Market - Class IB Sub-Account and into another investment alternative at any time 22 PROSPECTUS thereafter. However, each transfer you make will count against the 12 transfers you can make each Contract Year without paying a transfer fee. Prior to the Rider Maturity Date, the Accumulation Benefit will not be available as a Contract Value, Settlement Value, or Death Proceeds. Additionally, we will not pay an Accumulation Benefit if the TrueReturn Option is terminated for any reason prior to the Rider Maturity Date. After the Rider Maturity Date, the TrueReturn Option provides no additional benefit. The "Accumulation Benefit" is equal to the Benefit Base multiplied by the AB Factor. The "AB Factor" is determined by the Rider Period and Guarantee Option you selected as of the Rider Date. The following table shows the AB Factors available for the Rider Periods and Guarantee Options we currently offer. The following examples illustrate the Accumulation Benefit calculations under Guarantee Options 1 and 2 on the Rider Maturity Date. For the purpose of illustrating the Accumulation Benefit calculation, the examples assume the Benefit Base is the same on the Rider Date and the Rider Maturity Date. Example 1: Guarantee Option 1
AB FACTORS RIDER PERIOD GUARANTEE GUARANTEE (NUMBER OF YEARS) OPTION 1 OPTION 2 ------------------------------------- 8 100.0% NA ------------------------------------- 9 112.5% NA ------------------------------------- 10 125.0% 100.0% ------------------------------------- 11 137.5% 110.0% ------------------------------------- 12 150.0% 120.0% ------------------------------------- 13 162.5% 130.0% ------------------------------------- 14 175.0% 140.0% ------------------------------------- 15 187.5% 150.0% ------------------------------------- 16 200.0% 160.0% ------------------------------------- 17 212.5% 170.0% ------------------------------------- 18 225.0% 180.0% ------------------------------------- 19 237.5% 190.0% ------------------------------------- 20 250.0% 200.0% -------------------------------------
Guarantee Option: 1 Rider Period: 15 AB Factor: 187.5% Rider Date: 1/2/04 Rider Maturity Date: 1/2/19 Benefit Base on Rider Date: $50,000 Benefit Base on rider Maturity Date: $ 50,000 Example 2: Guarantee Option 2
On the Rider Maturity Date (1/2/19): Accumulation Benefit =Benefit Base on Rider Maturity Date X AB Factor =$50,000 X 187.5% =$93,750
Guarantee Option: 2 Rider Period: 15 AB Factor: 150.0% Rider Date: 1/2/04 Rider Maturity Date: 1/2/19 Benefit Base on Rider Date: $50,000 Benefit Base on rider Maturity Date: $50,000 Guarantee Option 1 offers a higher AB Factor and more rider periods than Guarantee Option 2. Guarantee Option 1 and Guarantee Option 2 have different investment restrictions. See "Investment Requirements" below for more information. BENEFIT BASE. The Benefit Base is used solely for purposes of determining the Rider Fee and the Accumulation Benefit. The Benefit Base is not available as a Contract Value, Settlement Value, or Death Proceeds. On the Rider Date, the "Benefit Base" is equal to the Contract Value. After the Rider Date, the Benefit Base will be recalculated for purchase payments and withdrawals as follows: .. The Benefit Base will be increased by purchase payments (and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS) made prior to or on the first Contract Anniversary following the Rider Date. Subject to the terms and conditions of your Contract, you may add purchase payments after this date, but they will not be included in the calculation of the Benefit Base. THEREFORE, IF YOU PLAN TO MAKE PURCHASE PAYMENTS AFTER THE FIRST CONTRACT ANNIVERSARY FOLLOWING THE RIDER DATE, YOU SHOULD CONSIDER CAREFULLY WHETHER THIS OPTION IS APPROPRIATE FOR YOUR NEEDS. .. The Benefit Base will be decreased by a Withdrawal Adjustment for each withdrawal you make. The Withdrawal Adjustment is equal to (a) divided by (b), with the result multiplied by (c), where: (a) = the withdrawal amount; (b) = the Contract Value immediately prior to the withdrawal; and (c) = the Benefit Base immediately prior to the withdrawal. Withdrawals taken prior to annuitization (referred to in this prospectus as the Payout Phase) are generally considered to come from the earnings in the Contract first. If the Contract is tax-qualified, generally all withdrawals are treated as distributions of earnings. Withdrawals of earnings are taxed as ordinary income 23 PROSPECTUS
On the Rider Maturity Date (1/2/19): Accumulation Benefit =Benefit Base on Rider Maturity Date X AB Factor =$50,000 X 150.0% =$75,000 and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty. A withdrawal charge also may apply. See Appendix G for numerical examples that illustrate how the Withdrawal Adjustment is applied. The Benefit Base will never be less than zero. INVESTMENT REQUIREMENTS. If you add the TrueReturn Option to your Contract, you must adhere to certain requirements related to the investment alternatives in which you may invest during the Rider Period. The specific requirements will depend on the model portfolio option ("Model Portfolio Option") you have selected and the effective date of your TrueReturn Option. These requirements are described below in more detail. These requirements may include, but are not limited to, maximum investment limits on certain Variable Sub-Accounts or on certain Fixed Account Options, exclusion of certain Variable Sub-Accounts or of certain Fixed Account Options, required minimum allocations to certain Variable Sub-Accounts, and restrictions on transfers to or from certain investment alternatives. We may also require that you use the Automatic Portfolio Rebalancing Program. We may change the specific requirements that are applicable to a Guarantee Option or a Model Portfolio Option available under a Guarantee Option at any time in our sole discretion. Any changes we make will not apply to a TrueReturn Option that was made a part of your Contract prior to the implementation date of the change, except for changes made due to a change in investment alternatives available under the Contract. Any changes we make will apply to a new TrueReturn Option elected subsequent to the change pursuant to the Rider Trade-In Option. When you add the TrueReturn Option to your Contract, you must allocate your entire Contract Value as follows: 1) to a Model Portfolio Option available with the Guarantee Option you selected, as defined below; or 2) to the DCA Fixed Account Option and then transfer all purchase payments (and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS) and interest according to a Model Portfolio Option available with the Guarantee Option you selected; or 3) to a combination of (1) and (2) above. For (2) and (3) above, the requirements for the DCA Fixed Account Option must be met. See the "Dollar Cost Averaging Fixed Account Option" section of this prospectus for more information. On the Rider Date, you must select only one of the Model Portfolio Options in which to allocate your Contract Value. After the Rider Date, you may transfer your entire Contract Value to any of the other Model Portfolio Options available with your Guarantee Option. We currently offer several Model Portfolio Options with each of the available Guarantee Options. The Model Portfolio Options that are available under Guarantee Options may differ depending upon the effective date of your TrueReturn Option. Please refer to the Model Portfolio Option 1, Model Portfolio Option 2, TrueBalance/SM/ Model Portfolio Options, and Fidelity VIP Freedom Funds Model Portfolio Options sections below for more details. We may add other Model Portfolio Options in the future. We also may remove Model Portfolio Options in the future anytime prior to the date you select such Model Portfolio Option. In addition, if the investment alternatives available under the Contract change, we may revise the Model Portfolio Options. The following table summarizes the Model Portfolio Options currently available for use with each Guarantee Option under the TrueReturn Option: GUARANTEE OPTION 1 GUARANTEE OPTION 2 ----------------------------------------------------------------------------- *Model Portfolio Option 1 *Model Portfolio Option 2 *TrueBalance Conservative Model *TrueBalance Conservative Model Portfolio Option Portfolio Option *TrueBalance Moderately Conservative *TrueBalance Moderately Conservative Model Portfolio Option Model Portfolio Option *Fidelity VIP Freedom Income Fund *TrueBalance Moderate Model Portfolio Model Portfolio Option Option *Fidelity VIP Freedom 2010 Fund Model *TrueBalance Moderately Aggressive Portfolio Option Model Portfolio Option *TrueBalance Aggressive Model Portfolio Option *Fidelity VIP Freedom Income Fund Model Portfolio Option *Fidelity VIP Freedom 2010 Fund Model Portfolio Option *Fidelity VIP Freedom 2020 Fund Model Portfolio Option *Fidelity VIP Freedom 2030 Fund Model Portfolio Option ----------------------------------------------------------------------------- NOTE: THE TRUEBALANCE MODEL PORTFOLIO OPTIONS WERE ADDED TO THE TRUERETURN OPTION ON MAY 1, 2005. TRUEBALANCE MODEL PORTFOLIOS SELECTED PRIOR TO MAY 1, 2005, MAY NOT BE USED WITH THE TRUERETURN OPTION. THE FIDELITY VIP FREEDOM FUNDS MODEL PORTFOLIO OPTIONS ARE AVAILABLE AS MODEL PORTFOLIO OPTIONS UNDER GUARANTEE OPTION 1 AND GUARANTEE OPTION 2 (RIDER DATE PRIOR TO OCTOBER 1, 2004). FOR GUARANTEE OPTION 2 (RIDER DATE ON OR AFTER OCTOBER 1, 2004), THE FIDELITY VIP FREEDOM FUNDS ARE PART OF THE AVAILABLE VARIABLE SUB-ACCOUNTS LISTED UNDER MODEL PORTFOLIO OPTION 2. PLEASE NOTE THAT ONLY CERTAIN FIDELITY VIP FREEDOM FUNDS MODEL PORTFOLIO OPTIONS ARE AVAILABLE WITH YOUR TRUERETURN OPTION AS SUMMARIZED IN THE TABLE ABOVE. You may not allocate any of your Contract Value to the Standard Fixed Account Option or to the MVA Fixed Account Option. You must transfer any portion of your Contract Value that is allocated to the Standard Fixed Account Option or to the MVA Fixed Account Option to the Variable Sub-Accounts prior to adding the TrueReturn Option to your Contract. Transfers from 24 PROSPECTUS the MVA Fixed Account Option may be subject to a Market Value Adjustment. You may allocate any portion of your purchase payments (and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS) to the DCA Fixed Account Option on the Rider Date, provided the DCA Fixed Account Option is available with your Contract and in your state. See the "Dollar Cost Averaging Fixed Account Option" section of this prospectus for more information. We use the term "Transfer Period Account" to refer to each purchase payment allocation made to the DCA Fixed Account Option for a specified term length. At the expiration of a Transfer Period Account any remaining amounts in the Transfer Period Account will be transferred to the Variable Sub-Accounts according to the percentage allocations for the Model Portfolio Option you selected. Any subsequent purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made to your Contract will be allocated to the Variable Sub-Accounts according to your specific instructions or your allocation for the previous purchase payment (for Model Portfolio Option 1) or the percentage allocation for your current Model Portfolio Option (for TrueBalance Model Portfolio Options) unless you request that the purchase payment (and Credit Enhancement for Allstate Advisor Plus Contracts) be allocated to the DCA Fixed Account Option. Purchase payments allocated to the DCA Fixed Account Option must be $100 or more. Any withdrawals you request will reduce your Contract Value invested in each of the investment alternatives on a pro rata basis in the proportion that your Contract Value in each bears to your total Contract Value in all Variable Sub-Accounts, unless you request otherwise. MODEL PORTFOLIO OPTION 1 If you choose Model Portfolio Option 1 or transfer your entire Contract Value into Model Portfolio Option 1 under Guarantee Option 1, you must allocate a certain percentage of your Contract Value into each of three asset categories. Please note that certain investment alternatives are not available under Model Portfolio Option 1. You may choose the Variable Sub-Accounts in which you want to invest, provided you maintain the percentage allocation requirements for each category. You may also make transfers among the Variable Sub-Accounts within each category at any time, provided you maintain the percentage allocation requirements for each category. However, each transfer you make will count against the 12 transfers you can make each Contract Year without paying a transfer fee. Effective October 1, 2004, certain Variable Sub-Accounts under Model Portfolio 1 were reclassified into different asset categories. These changes apply to TrueReturn Options effective prior to and on or after October 1, 2004. The following table describes the percentage allocation requirements for Model Portfolio Option 1 and Variable Sub-Accounts available under each category/(1)/: MODEL PORTFOLIO OPTION 1 - -------------------------------------------------------------------------------- 20% Category A 50% Category B 30% Category C 0% Category D - -------------------------------------------------------------------------------- CATEGORY A Putnam VT Money Market - Class IB Sub-Account - -------------------------------------------------------------------------------- CATEGORY B FTVIP Franklin U.S. Government - Class 2 Sub-Account Lord Abbett Series - Bond-Debenture Sub-Account Oppenheimer Core Bond/VA - Service Shares Sub-Account Oppenheimer High Income/VA - Service Shares Sub-Account Oppenheimer Global Strategic Income/VA - Service Shares Sub-Account/(6)/ Putnam VT High Yield - Class IB Sub-Account Putnam VT Income - Class IB Sub-Account UIF Emerging Markets Debt, Class II Sub-Account/(2)/ UIF U.S. Real Estate, Class II Sub-Account/(2)/ - -------------------------------------------------------------------------------- CATEGORY C Fidelity VIP Contrafund(R) - Service Class 2 Sub-Account Fidelity VIP Index 500 - Service Class 2 Sub-Account Fidelity VIP Mid Cap - Service Class 2 Sub-Account FTVIP Franklin Growth and Income Securities - Class 2 Sub-Account FTVIP Franklin Income Securities - Class 2 Sub-Account FTVIP Franklin Large Cap Growth Securities - Class 2 Sub-Account FTVIP Franklin Small Cap Value Securities - Class 2 Sub-Account FTVIP Mutual Global Discovery Securities - Class 2 Sub-Account FTVIP Mutual Shares Securities - Class 2 Sub-Account FTVIP Templeton Developing Markets Securities - Class 2 Sub-Account FTVIP Templeton Foreign Securities - Class 2 Sub-Account Lord Abbett Series - Fundamental Equity Value Sub-Account/(8)/ Lord Abbett Series - Growth and Income Sub-Account Lord Abbett Series - Growth Opportunities Sub-Account Lord Abbett Series - Mid-Cap Value Sub-Account Oppenheimer Small- & Mid-Cap Growth/VA - Service Shares Sub-Account/(6)/ Oppenheimer Balanced/VA - Service Shares Sub-Account Oppenheimer Capital Appreciation/VA - Service Shares Sub-Account Oppenheimer Main Street(R)/VA - Service Shares Sub-Account Oppenheimer Main Street Small Cap(R)/VA - Service Shares Sub-Account Putnam VT Equity Income - Class IB Sub-Account Putnam VT Global Asset Allocation - Class IB Sub-Account Putnam VT Growth and Income - Class IB Sub-Account Putnam VT International Equity - Class IB Sub-Account Putnam VT Investors - Class IB Sub-Account Putnam VT Research - Class IB Sub-Account/(3)/ Putnam VT The George Putnam Fund of Boston - Class IB Sub-Account Putnam VT Global Utilities - Class IB Sub-Account/(3)/ Putnam VT Voyager - Class IB Sub-Account UIF Equity and Income, Class II Sub-Account/(2)(7)/ UIF Global Franchise, Class II Sub-Account/(2)/ UIF Mid Cap Growth, Class II Sub-Account/(2)/ UIF U.S. Mid Cap Value, Class I Sub-Account & UIF U.S. Mid Cap Value, Class II Sub-Account/(2)(4)(7)/ Van Kampen LIT Comstock, Class II Sub-Account/(7)/ Van Kampen LIT Capital Growth, Class II Sub-Account/(7)/ Van Kampen LIT Growth and Income, Class II Sub-Account/(7)/ - -------------------------------------------------------------------------------- CATEGORY D (VARIABLE SUB-ACCOUNTS NOT AVAILABLE UNDER MODEL PORTFOLIO OPTION 1) Fidelity VIP Freedom Income - Service Class 2 Sub-Account 25 PROSPECTUS Fidelity VIP Freedom 2010 - Service Class 2 Sub-Account Fidelity VIP Freedom 2020 - Service Class 2 Sub-Account Fidelity VIP Freedom 2030 - Service Class 2 Sub-Account Fidelity VIP Growth Stock - Service Class 2 Sub-Account Oppenheimer Global Securities/VA - Service Shares Sub-Account Putnam VT Global Health Care- Class IB Sub-Account/(3)/ Putnam VT New Opportunities - Class IB Sub-Account/(3)/ Putnam VT Vista - Class IB Sub-Account UIF Capital Growth, Class I Sub-Account/(2)(4)/ UIF Capital Growth, Class II Sub-Account/(2)(4)/ UIF Small Company Growth, Class II Sub-Account/(2)/ Van Kampen LIT Mid Cap Growth, Class II Sub-Account/(5)(7)/ - -------------------------------------------------------------------------------- EACH CALENDAR QUARTER, WE WILL USE THE AUTOMATIC PORTFOLIO REBALANCING PROGRAM TO AUTOMATICALLY REBALANCE YOUR CONTRACT VALUE IN EACH VARIABLE SUB-ACCOUNT AND RETURN IT TO THE PERCENTAGE ALLOCATION REQUIREMENTS FOR MODEL PORTFOLIO OPTION 1. WE WILL USE THE PERCENTAGE ALLOCATIONS AS OF YOUR MOST RECENT INSTRUCTIONS. (1)The FTVIP Franklin Small-Mid Cap Growth Securities - Class 2 Sub-Account and the FTVIP Templeton Global Bond Securities - Class 2 Sub-Account, which were closed to new investments effective May 1, 2003, are not available with the TrueReturn Option. You must transfer any portion of your Contract Value that is allocated to these Variable Sub-Accounts to any of the remaining Variable Sub-Accounts offered with the TrueReturn Option prior to adding the TrueReturn Option to your Contract.* (2)Morgan Stanley Investment Management Inc., the adviser to the UIF Portfolios, does business in certain instances using the name Van Kampen. (3)The Putnam VT Global Health Care - Class IB Sub-Account (Category D under TrueReturn), the Putnam VT New Opportunities - Class IB Sub-Account (Category D under TrueReturn), the Putnam VT Research - Class IB Sub-Account (Category C under TrueReturn), and the Putnam VT Global Utilities - Class IB Sub-Account (Category C under TrueReturn) were offered only with Contracts issued prior to October 1, 2004, and closed to new investments effective October 1, 2004. If you add the TrueReturn Option to your Contract on or after October 1, 2004, you must transfer any portion of your Contract Value that is allocated to these Variable Sub-Accounts to any of the remaining Variable Sub-Accounts available with the TrueReturn Option prior to adding the TrueReturn Option to your Contract.* (4)The UIF Capital Growth, Class II Sub-Account and the UIF U.S. Mid Cap Value, Class II Sub-Account are offered with Contracts issued on or after May 1, 2004. Generally Contract Owners of Contracts issued prior to May 1, 2004, may invest only in the UIF Capital Growth, Class I Sub-Account and the UIF U.S. Mid Cap Value, Class I Sub-Account. Contracts issued prior to May 1, 2004 that participate in certain TrueBalance model portfolios may invest in UIF Capital Growth, Class II Sub-Account and the UIF U.S. Mid Cap Value, Class II Sub-Account. (5)Effective May 1, 2006, the Van Kampen LIT Mid Cap Growth Portfolio, Class II (formerly called the Van Kampen LIT Aggressive Growth Portfolio, Class II) was closed to new investments. If you are currently invested in the Variable Sub-Account that invests in this Portfolio, you may continue your investment. If, prior to May 1, 2006, you enrolled in one of our automatic transaction programs such as automatic additions, portfolio rebalancing, or dollar cost averaging, we will continue to effect automatic transactions into the Variable Sub-Account in accordance with that program. Outside of these automatic transaction programs, additional allocations will not be allowed.* (6)Effective May 1, 2010, the following Portfolios changed their names: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Oppenheimer MidCap Fund/VA Oppenheimer Small- & Mid-Cap Growth Fund/VA ----------------------------------------------------------------------------- Oppenheimer Strategic Bond Fund/VA Oppenheimer Global Strategic Income Fund/VA ----------------------------------------------------------------------------- (7)Subject to shareholder approval, certain portfolios of The Universal Institutional Funds, Inc., and the Van Kampen Life Investment Trust will be reorganized into corresponding funds of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds). It is anticipated that the reorganization will occur in the second quarter of 2010. Each such portfolio and its corresponding acquiring fund is shown below: REORGANIZING PORTFOLIOS ACQUIRING FUNDS ----------------------------------------------------------------------------- THE UNIVERSAL INSTITUTIONAL AIM VARIABLE INSURANCE FUNDS FUNDS, INC: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- UIF Equity and Income Portfolio, Invesco Van Kampen V.I. Equity and Class II Income Fund - Series II ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class I Fund - Series I ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class II Fund - Series II ----------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS VAN KAMPEN LIFE INVESTMENT TRUST: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- Van Kampen LIT Capital Growth Invesco Van Kampen V.I. Capital Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Comstock Portfolio - Invesco Van Kampen V.I. Comstock Fund Class II - Series II ----------------------------------------------------------------------------- Van Kampen LIT Growth and Income Invesco Van Kampen V.I. Growth and Portfolio - Class II Income Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Mid Cap Growth Invesco Van Kampen V.I. Mid Cap Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- (8)Effective May 1, 2010, the following Portfolio changed its name: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - All Lord Abbett Series Fund Inc. - Value Portfolio Fundamental Equity Portfolio ----------------------------------------------------------------------------- * As noted above, certain Variable Sub-Accounts are closed to new investments. If you invested in these Variable Sub-Accounts prior to the effective close date, you may continue your investments. If prior to the effective close date, you enrolled in one of our automatic transaction programs, such as automatic additions, portfolio rebalancing or dollar cost averaging, we will continue to effect automatic transactions to these Variable Sub-Accounts in accordance with that program. Outside of these automatic transaction programs, additional allocations will not be allowed. If you choose to add this TrueReturn Option on or after the effective close date, you must transfer any portion of your Contract Value that is allocated to these Variable Sub-Accounts to any of the remaining Variable Sub-Accounts available with this TrueReturn Option prior to adding it to your Contract. MODEL PORTFOLIO OPTION 2 The investment requirements under Model Portfolio Option 2 depend on the Rider Date of your TrueReturn Option. Model Portfolio Option 2 (Rider Date prior to October 1, 2004) If your TrueReturn Option Rider Date is prior to October 1, 2004 and you choose Model Portfolio 26 PROSPECTUS Option 2 or transfer your entire Contract Value into Model Portfolio Option 2, you may allocate your Contract Value among any of a selected group of available Variable Sub-Accounts listed below. You may choose the Variable Sub-Accounts in which you want to invest, provided you maintain the percentage allocation requirements for each category. You may also make transfers among the Variable Sub-Accounts within each category at any time, provided you maintain the percentage allocation requirements for each category. However, each transfer you make will count against the 12 transfers you can make each Contract Year without paying a transfer fee. The following table describes the percentage allocation requirements for Model Portfolio Option 2 (Rider Date prior to October 1, 2004) and the Variable Sub-Accounts available under each category/(1)/: MODEL PORTFOLIO OPTION 2 (RIDER DATE PRIOR TO OCTOBER 1, 2004) - -------------------------------------------------------------------------------- 10% Category A 20% Category B 50% Category C 20% Category D - -------------------------------------------------------------------------------- CATEGORY A Putnam VT Money Market - Class IB Sub-Account - -------------------------------------------------------------------------------- CATEGORY B FTVIP Franklin U.S. Government - Class 2 Sub-Account Lord Abbett Series - Bond-Debenture Sub-Account Oppenheimer Core Bond/VA - Service Shares Sub-Account Oppenheimer High Income/VA - Service Shares Sub-Account Oppenheimer Global Strategic Income/VA - Service Shares Sub-Account/(6)/ Putnam VT High Yield - Class IB Sub-Account Putnam VT Income - Class IB Sub-Account UIF Emerging Markets Debt, Class II Sub-Account/(2)/ UIF U.S. Real Estate, Class II Sub-Account/(2)/ - -------------------------------------------------------------------------------- CATEGORY C Fidelity VIP Contrafund(R) - Service Class 2 Sub-Account Fidelity VIP Index 500 - Service Class 2 Sub-Account Fidelity VIP Mid Cap - Service Class 2 Sub-Account FTVIP Franklin Growth and Income Securities - Class 2 Sub-Account FTVIP Franklin Income Securities - Class 2 Sub-Account FTVIP Franklin Large Cap Growth Securities - Class 2 Sub-Account FTVIP Mutual Global Discovery Securities - Class 2 Sub-Account FTVIP Mutual Shares Securities - Class 2 Sub-Account Lord Abbett Series - Fundamental Equity Sub-Account/(8)/ Lord Abbett Series - Growth and Income Sub-Account Lord Abbett Series - Growth Opportunities Sub-Account Lord Abbett Series - Mid-Cap Value Sub-Account Oppenheimer Balanced/VA - Service Shares Sub-Account Oppenheimer Main Street(R)/VA - Service Shares Sub-Account Putnam VT Equity Income - Class IB Sub-Account Putnam VT Global Asset Allocation - Class IB Sub-Account Putnam VT Growth and Income - Class IB Sub-Account Putnam VT Research - Class IB Sub-Account/(3)/ Putnam VT The George Putnam Fund of Boston - Class IB Sub-Account Putnam VT Global Utilities - Class IB Sub-Account/(3)/ UIF Equity and Income, Class II Sub-Account/(2)(7)/ UIF Mid Cap Growth, Class II Sub-Account/(2)/ UIF U.S. Mid Cap Value, Class I Sub-Account & UIF U.S. Mid Cap Value, Class II Sub-Account/(2)(4)(7)/ Van Kampen LIT Comstock, Class II Sub-Account/(7)/ Van Kampen LIT Growth and Income, Class II Sub-Account/(7)/ - -------------------------------------------------------------------------------- CATEGORY D Fidelity VIP Growth Stock - Service Class 2 Sub-Account FTVIP Franklin Small Cap Value Securities - Class 2 Sub-Account FTVIP Templeton Developing Markets Securities - Class 2 Sub-Account FTVIP Templeton Foreign Securities - Class 2 Sub-Account Oppenheimer Small- & Mid-Cap Growth/VA - Service Shares Sub-Account/(6)/ Oppenheimer Capital Appreciation/VA - Service Shares Sub-Account Oppenheimer Global Securities/VA - Service Shares Sub-Account Oppenheimer Main Street Small Cap(R)/VA - Service Shares Sub-Account Putnam VT Global Health Care - Class IB Sub-Account/(3)/ Putnam VT International Equity - Class IB Sub-Account Putnam VT Investors - Class IB Sub-Account Putnam VT New Opportunities - Class IB Sub-Account/(3)/ Putnam VT Vista - Class IB Sub-Account Putnam VT Voyager - Class IB Sub-Account UIF Capital Growth, Class I Sub-Account UIF Capital Growth, Class II Sub-Account/(2)(4)/ UIF Global Franchise, Class II Sub-Account/(2)/ UIF Small Company Growth, Class II Sub-Account/(2)/ Van Kampen LIT Capital Growth, Class II Sub-Account/(7)/ Van Kampen LIT Mid Cap Growth, Class II Sub-Account/(5)(7)/ - -------------------------------------------------------------------------------- THE FOLLOWING VARIABLE SUB-ACCOUNTS ARE NOT AVAILABLE UNDER MODEL PORTFOLIO OPTION 2 (RIDER DATE PRIOR TO OCTOBER 1, 2004): FIDELITY VIP FREEDOM INCOME - SERVICE CLASS 2 SUB-ACCOUNT, FIDELITY VIP FREEDOM 2010 - SERVICE CLASS 2 SUB-ACCOUNT, FIDELITY VIP FREEDOM 2020 - SERVICE CLASS 2 SUB-ACCOUNT AND FIDELITY VIP FREEDOM 2030 - SERVICE CLASS 2 SUB-ACCOUNT. INSTEAD, THE FIDELITY VIP FREEDOM FUNDS ARE AVAILABLE AS MODEL PORTFOLIO OPTIONS (SEE TABLE UNDER INVESTMENT REQUIREMENTS ABOVE). EACH CALENDAR QUARTER, WE WILL USE THE AUTOMATIC PORTFOLIO REBALANCING PROGRAM TO AUTOMATICALLY REBALANCE YOUR CONTRACT VALUE IN EACH VARIABLE SUB-ACCOUNT AND RETURN IT TO THE PERCENTAGE ALLOCATION REQUIREMENTS FOR MODEL PORTFOLIO OPTION 2 (RIDER DATE PRIOR TO OCTOBER 1, 2004). WE WILL USE THE PERCENTAGE ALLOCATIONS AS OF YOUR MOST RECENT INSTRUCTIONS. (1)The FTVIP Franklin Small-Mid Cap Growth Securities - Class 2 Sub-Account and the FTVIP Templeton Global Bond Securities - Class 2 Sub-Account, which were closed to new investments effective May 1, 2003, are not available with the TrueReturn Option. You must transfer any portion of your Contract Value that is allocated to these Variable Sub-Accounts to any of the remaining Variable Sub-Accounts available with the TrueReturn Option prior to adding the TrueReturn Option to your Contract.* (2)Morgan Stanley Investment Management Inc., the adviser to the UIF Portfolios, does business in certain instances using the name Van Kampen. (3)The Putnam VT Global Health Care - Class IB Sub-Account (Category D under TrueReturn), the Putnam VT New Opportunities - Class IB Sub-Account (Category D under TrueReturn), the Putnam VT Research - Class IB Sub-Account (Category C under TrueReturn), and the Putnam VT Global Utilities - Class IB Sub-Account (Category C under TrueReturn) were offered only with Contracts issued prior to October 1, 2004, and closed to new investments effective October 1, 2004.* 27 PROSPECTUS (4)The UIF Capital Growth, Class II Sub-Account and the UIF U.S. Mid Cap Value, Class II Sub-Account are offered with Contracts issued on or after May 1, 2004. Contract Owners of Contracts issued prior to May 1, 2004 may invest only in the UIF Capital Growth, Class I Sub-Account and the UIF U.S. Mid Cap Value, Class I Sub-Account. Contracts issued prior to May 1, 2004 that participate in certain TrueBalance model portfolios may invest in UIF Capital Growth, Class II Sub-Account and the UIF U.S. MidCap Value, Class II Sub-Account. (5)Effective May 1, 2006, the Van Kampen LIT Mid Cap Growth Portfolio, Class II (formerly called the Van Kampen LIT Aggressive Growth Portfolio, Class II) was closed to new investments. If you are currently invested in the Variable Sub-Account that invests in this Portfolio, you may continue your investment. If, prior to May 1, 2006, you enrolled in one of our automatic transaction programs such as automatic additions, portfolio rebalancing, or dollar cost averaging, we will continue to effect automatic transactions into the Variable Sub-Account in accordance with that program. Outside of these automatic transaction programs, additional allocations will not be allowed.* (6)Effective May 1, 2010, the following Portfolios changed their names: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Oppenheimer MidCap Fund/VA Oppenheimer Small- & Mid-Cap Growth Fund/VA ----------------------------------------------------------------------------- Oppenheimer Strategic Bond Fund/VA Oppenheimer Global Strategic Income Fund/VA ----------------------------------------------------------------------------- (7)Subject to shareholder approval, certain portfolios of The Universal Institutional Funds, Inc., and the Van Kampen Life Investment Trust will be reorganized into corresponding funds of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds). It is anticipated that the reorganization will occur in the second quarter of 2010. Each such portfolio and its corresponding acquiring fund is shown below: REORGANIZING PORTFOLIOS ACQUIRING FUNDS ----------------------------------------------------------------------------- THE UNIVERSAL INSTITUTIONAL AIM VARIABLE INSURANCE FUNDS FUNDS, INC: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- UIF Equity and Income Portfolio, Invesco Van Kampen V.I. Equity and Class II Income Fund - Series II ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class I Fund - Series I ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class II Fund - Series II ----------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS VAN KAMPEN LIFE INVESTMENT TRUST: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- Van Kampen LIT Capital Growth Invesco Van Kampen V.I. Capital Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Comstock Portfolio - Invesco Van Kampen V.I. Comstock Fund Class II - Series II ----------------------------------------------------------------------------- Van Kampen LIT Growth and Income Invesco Van Kampen V.I. Growth and Portfolio - Class II Income Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Mid Cap Growth Invesco Van Kampen V.I. Mid Cap Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- (8)Effective May 1, 2010, the following Portfolio changed its name: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - All Lord Abbett Series Fund Inc. - Value Portfolio Fundamental Equity Portfolio ----------------------------------------------------------------------------- * AS NOTED ABOVE, CERTAIN VARIABLE SUB-ACCOUNTS ARE CLOSED TO NEW INVESTMENTS. IF YOU INVESTED IN THESE VARIABLE SUB-ACCOUNTS PRIOR TO THE EFFECTIVE CLOSE DATE, YOU MAY CONTINUE YOUR INVESTMENTS. IF PRIOR TO THE EFFECTIVE CLOSE DATE, YOU ENROLLED IN ONE OF OUR AUTOMATIC TRANSACTION PROGRAMS, SUCH AS AUTOMATIC ADDITIONS, PORTFOLIO REBALANCING OR DOLLAR COST AVERAGING, WE WILL CONTINUE TO EFFECT AUTOMATIC TRANSACTIONS TO THESE VARIABLE SUB-ACCOUNTS IN ACCORDANCE WITH THAT PROGRAM. OUTSIDE OF THESE AUTOMATIC TRANSACTION PROGRAMS, ADDITIONAL ALLOCATIONS WILL NOT BE ALLOWED. Rider Date on or after October 1, 2004 If your TrueReturn Option Rider Date is on or after October 1, 2004, and you choose Model Portfolio Option 2 or transfer your entire Contract Value into Model Portfolio Option 2, you may allocate your Contract Value among any of a selected group of available Variable Sub-Accounts listed below. However, you may not allocate your Contract Value among any of the excluded Variable Sub-Accounts listed below. You may choose to invest in or transfer among any of the available Variable Sub-Accounts. However, each transfer you make will count against the 12 transfers you can make each Contract Year without paying a transfer fee. The following table lists the available and excluded Variable Sub-Accounts under Model Portfolio Option 2 (Rider Date on or after October 1, 2004)/(1)/: MODEL PORTFOLIO OPTION 2 (RIDER DATE ON OR AFTER OCTOBER 1, 2004) - -------------------------------------------------------------------------------- Available - -------------------------------------------------------------------------------- Fidelity VIP Freedom Income - Service Class 2 Sub-Account Fidelity VIP Freedom 2010 - Service Class 2 Sub-Account Fidelity VIP Freedom 2020 - Service Class 2 Sub-Account Fidelity VIP Freedom 2030 - Service Class 2 Sub-Account Fidelity VIP Contrafund(R) - Service Class 2 Sub-Account Fidelity VIP Index 500 - Service Class 2 Sub-Account Fidelity VIP Mid Cap - Service Class 2 Sub-Account FTVIP Franklin Growth and Income Securities - Class 2 Sub-Account FTVIP Franklin Income Securities - Class 2 Sub-Account FTVIP Franklin Large Cap Growth Securities - Class 2 Sub-Account FTVIP Franklin Small Cap Value Securities - Class 2 Sub-Account FTVIP Mutual Global Discovery Securities - Class 2 Sub-Account FTVIP Franklin U.S. Government - Class 2 Sub-Account FTVIP Mutual Shares Securities - Class 2 Sub-Account FTVIP Templeton Developing Markets Securities - Class 2 Sub-Account FTVIP Templeton Foreign Securities - Class 2 Sub-Account Lord Abbett Series - Fundamental Equity Value Sub-Account/(6)/ Lord Abbett Series - Bond-Debenture Sub-Account Lord Abbett Series - Growth and Income Sub-Account Lord Abbett Series - Growth Opportunities Sub-Account Lord Abbett Series - Mid-Cap Value Sub-Account Oppenheimer Small- & Mid-Cap Growth/VA - Service Shares Sub-Account/(5)/ Oppenheimer Balanced/VA - Service Shares Sub-Account Oppenheimer Core Bond/VA - Service Shares Sub-Account Oppenheimer Capital Appreciation/VA - Service Shares Sub-Account Oppenheimer High Income/VA - Service Shares Sub-Account Oppenheimer Main Street(R)/VA - Service Shares Sub-Account Oppenheimer Main Street Small Cap(R)/VA - Service Shares Sub-Account Oppenheimer Global Strategic Income/VA - Service Shares Sub-Account/(5)/ Putnam VT Equity Income - Class IB Sub-Account Putnam VT Global Asset Allocation - Class IB Sub-Account Putnam VT Growth and Income - Class IB Sub-Account Putnam VT High Yield - Class IB Sub-Account 28 PROSPECTUS Putnam VT Income - Class IB Sub-Account Putnam VT International Equity - Class IB Sub-Account Putnam VT Investors - Class IB Sub-Account Putnam VT Money Market - Class IB Sub-Account Putnam VT The George Putnam Fund of Boston - Class IB Sub-Account Putnam VT Voyager - Class IB Sub-Account UIF Emerging Markets Debt, Class II Sub-Account/(2)/ UIF Equity and Income, Class II Sub-Account/(2)(7)/ UIF Global Franchise, Class II Sub-Account/(2)/ UIF Mid Cap Growth, Class II Sub-Account/(2)/ UIF U.S. Mid Cap Value, Class I Sub-Account & UIF U.S. Mid Cap Value, Class II Sub-Account/(2)(3)(7)/ UIF U.S. Real Estate, Class II Sub-Account/(2) / Van Kampen LIT Capital Growth, Class II Sub-Account/(7)/ Van Kampen LIT Comstock, Class II Sub-Account/(7)/ Van Kampen LIT Growth and Income, Class II Sub-Account/(7)/ - -------------------------------------------------------------------------------- Excluded - -------------------------------------------------------------------------------- Fidelity VIP Growth Stock - Service Class 2 Sub-Account Oppenheimer Global Securities/VA - Service Shares Sub-Account Putnam VT Vista - Class IB Sub-Account UIF Capital Growth, Class I Sub-Account & UIF Capital Growth, Class II Sub-Account/(2)(3)/ UIF Small Company Growth, Class II Sub-Account/(2)/ Van Kampen LIT Mid Cap Growth, Class II Sub-Account/(4)(7)/ - -------------------------------------------------------------------------------- (1)The FTVIP Franklin Small-Mid Cap Growth Securities - Class 2 Sub-Account and the FTVIP Templeton Global Bond Securities - Class 2 Sub-Account, which were closed to new investments effective May 1, 2003, are not available with the TrueReturn Option. You must transfer any portion of your Contract Value that is allocated to these Variable Sub-Accounts to any of the remaining Variable Sub-Accounts offered with the TrueReturn Option prior to adding the TrueReturn Option to your Contract.* (2)Morgan Stanley Investment Management Inc., the adviser to the UIF Portfolios, does business in certain instances using the name Van Kampen. (3)The UIF Capital Growth, Class II Sub-Account and the UIF U.S. Mid Cap Value, Class II Sub-Account are offered with Contracts issued on or after May 1, 2004. Contract Owners of Contracts issued prior to May 1, 2004 may invest only in the UIF Capital Growth, Class I Sub-Account and the UIF U.S. Mid Cap Value, Class I Sub-Account. Contracts issued prior to May 1, 2004 that participate in certain TrueBalance model portfolios may invest in UIF Capital Growth, Class II Sub-Account and the UIF U.S. MidCap Value, Class II Sub-Account. (4)Effective May 1, 2006, the Van Kampen LIT Mid Cap Growth Portfolio, Class II (formerly called the Van Kampen LIT Aggressive Growth Portfolio, Class II) was closed to new investments. If you are currently invested in the Variable Sub-Account that invests in this Portfolio, you may continue your investment. If, prior to May 1, 2006, you enrolled in one of our automatic transaction programs such as automatic additions, portfolio rebalancing, or dollar cost averaging, we will continue to effect automatic transactions into the Variable Sub-Account in accordance with that program. Outside of these automatic transaction programs, additional allocations will not be allowed.* (5)Effective May 1, 2010, the following Portfolios changed their names: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Oppenheimer MidCap Fund/VA Oppenheimer Small- & Mid-Cap Growth Fund/VA ----------------------------------------------------------------------------- Oppenheimer Strategic Bond Fund/VA Oppenheimer Global Strategic Income Fund/VA ----------------------------------------------------------------------------- (6)Effective May 1, 2010, the following Portfolio changed its name: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - All Lord Abbett Series Fund Inc. - Value Portfolio Fundamental Equity Portfolio ----------------------------------------------------------------------------- (7)Subject to shareholder approval, certain portfolios of The Universal Institutional Funds, Inc., and the Van Kampen Life Investment Trust will be reorganized into corresponding funds of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds). It is anticipated that the reorganization will occur in the second quarter of 2010. Each such portfolio and its corresponding acquiring fund is shown below: REORGANIZING PORTFOLIOS ACQUIRING FUNDS ----------------------------------------------------------------------------- THE UNIVERSAL INSTITUTIONAL FUNDS, AIM VARIABLE INSURANCE FUNDS INC: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- UIF Equity and Income Portfolio, Invesco Van Kampen V.I. Equity and Class II Income Fund - Series II ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class I Fund - Series I ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class II Fund - Series II ----------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS VAN KAMPEN LIFE INVESTMENT TRUST: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- Van Kampen LIT Capital Growth Invesco Van Kampen V.I. Capital Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Comstock Portfolio - Invesco Van Kampen V.I. Comstock Fund Class II - Series II ----------------------------------------------------------------------------- Van Kampen LIT Growth and Income Invesco Van Kampen V.I. Growth and Portfolio - Class II Income Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Mid Cap Growth Invesco Van Kampen V.I. Mid Cap Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- * AS NOTED ABOVE, CERTAIN VARIABLE SUB-ACCOUNTS ARE CLOSED TO NEW INVESTMENTS. IF YOU INVESTED IN THESE VARIABLE SUB-ACCOUNTS PRIOR TO THE EFFECTIVE CLOSE DATE, YOU MAY CONTINUE YOUR INVESTMENTS. IF PRIOR TO THE EFFECTIVE CLOSE DATE, YOU ENROLLED IN ONE OF OUR AUTOMATIC TRANSACTION PROGRAMS, SUCH AS AUTOMATIC ADDITIONS, PORTFOLIO REBALANCING OR DOLLAR COST AVERAGING, WE WILL CONTINUE TO EFFECT AUTOMATIC TRANSACTIONS TO THESE VARIABLE SUB-ACCOUNTS IN ACCORDANCE WITH THAT PROGRAM. OUTSIDE OF THESE AUTOMATIC TRANSACTION PROGRAMS, ADDITIONAL ALLOCATIONS WILL NOT BE ALLOWED. IF YOU CHOOSE TO ADD THIS TRUERETURN OPTION ON OR AFTER THE EFFECTIVE CLOSE DATE, YOU MUST TRANSFER ANY PORTION OF YOUR CONTRACT VALUE THAT IS ALLOCATED TO THESE VARIABLE SUB-ACCOUNTS TO ANY OF THE REMAINING VARIABLE SUB-ACCOUNTS AVAILABLE WITH THIS TRUERETURN OPTION PRIOR TO ADDING IT TO YOUR CONTRACT. TRUEBALANCE/SM/ MODEL PORTFOLIO OPTIONS. If you choose one of the TrueBalance/SM/ Model Portfolio Options or transfer your entire Contract Value into one of the TrueBalance/SM/ Model Portfolio Options, you may not choose the Variable Sub-Accounts or make transfers among the Variable Sub-Accounts in the TrueBalance Model Portfolio Option. Each TrueBalance Model Portfolio involves an allocation of assets among a group of pre-selected Variable Sub-Accounts. You cannot make transfers among the Variable Sub-Accounts nor vary the Variable Sub-Accounts that comprise a TrueBalance Model Portfolio Option. If you choose a TrueBalance Model Portfolio Option, we will invest and periodically reallocate your Contract Value according to the 29 PROSPECTUS allocation percentages and requirements for the TrueBalance Model Portfolio Option you have selected currently. For more information regarding the TrueBalance program, see the "TrueBalance/SM/ Asset Allocation Program" section of this prospectus. However, note that the restrictions described in this section, specifically the restrictions on transfers and the requirement that all of your Contract Value be allocated to a TrueBalance Model Portfolio Option, apply to the TrueBalance program only if you have added the TrueReturn Option to your Contract. PLEASE NOTE ONLY CERTAIN TRUEBALANCE MODEL PORTFOLIO OPTIONS ARE AVAILABLE WITH YOUR TRUERETURN OPTION AS SUMMARIZED IN THE TABLE UNDER INVESTMENT REQUIREMENTS ABOVE. CANCELLATION OF THE TRUERETURN OPTION. You may not cancel the TrueReturn Option or make transfers, changes to your investment allocations, or changes to the Automatic Portfolio Rebalancing Program that are inconsistent with the investment restrictions applicable to your Guarantee Option and/or Model Portfolio Option prior to the 5th Rider Anniversary. Failure to comply with the investment requirements for any reason may result in the cancellation of the TrueReturn Option. On or after the 5th Rider Anniversary, we will cancel the TrueReturn Option if you make transfers, changes to your investment allocations, or changes to the Automatic Portfolio Rebalancing Program that are inconsistent with the investment requirements applicable to your Guarantee Option and/or Model Portfolio Option. We will not cancel the TrueReturn Option or make any changes to your investment allocations or to the Automatic Portfolio Rebalancing Program that are inconsistent with the investment restrictions applicable to your Guarantee Option until we receive notice from you that you wish to cancel the TrueReturn Option. No Accumulation Benefit will be paid if you cancel the Option prior to the Rider Maturity Date. DEATH OF OWNER OR ANNUITANT. If the Contract Owner or Annuitant dies before the Rider Maturity Date and the Contract is continued under Option D of the Death of Owner or Death of Annuitant provision of your Contract, as described on page 79 of this prospectus, then the TrueReturn Option will continue, unless the new Contract Owner elects to cancel this Option. If the TrueReturn Option is continued, it will remain in effect until terminated. If the Contract is not continued under Option D, then the TrueReturn Option will terminate on the date we receive a Complete Request for Settlement of the Death Proceeds. RIDER TRADE-IN OPTION. We offer a "Rider Trade-In Option" that allows you to cancel your TrueReturn Option and immediately add a new TrueReturn Option ("New Option"), provided all of the following conditions are met: .. The trade-in must occur on or after the 5th Rider Anniversary and prior to the Rider Maturity Date. We reserve the right to extend the date at which time the trade-in may occur to up to the 10th anniversary of the Rider Date at any time in our sole discretion. Any change we make will not apply to a TrueReturn Option that was added to your Contract prior to the implementation date of the change. .. The New Option will be made a part of your Contract on the date the existing TrueReturn Option is cancelled, provided it is cancelled for reasons other than the termination of your Contract. .. The New Option must be a TrueReturn Option that we make available for use with the Rider Trade-In Option. .. The issue requirements and terms and conditions of the New Option must be met as of the date the New Option is made a part of your Contract. For example, if you trade-in your TrueReturn Option: .. the new Rider Fee will be based on the Rider Fee percentage applicable to a new TrueReturn Option at the time of trade-in; .. the Benefit Base for the New Option will be based on the Contract Value as of the new Rider Date; .. the AB Factor will be determined by the Rider Periods and Guarantee Options available with the New Option; .. the Model Portfolio Options will be determined by the Model Portfolio Options offered with the Guarantee Options available with the New Option; .. any waiting period for canceling the New Option will start again on the new Rider Date; .. any waiting period for exercising the Rider Trade-In Option will start again on the new Rider Date; and .. the terms and conditions of the Rider Trade-In Option will be according to the requirements of the New Option. We are also making the Withdrawal Benefit Options available at the time of your first utilization of this TrueReturn Rider Trade-In Option. We may discontinue offering any of these Withdrawal Benefit Options under the Rider Trade-In Option with respect to new TrueReturn Options added in the future at anytime at our discretion. If we do so, TrueReturn Options issued prior to this time will continue to have a Withdrawal Benefit Option available at the time of the first utilization of this TrueReturn Rider Trade-In Option. You may cancel your TrueReturn Option and 30 PROSPECTUS immediately add a new SureIncome Option, a new SureIncome Plus Option, or a new SureIncome For Life Option, provided all of the following conditions are met: .. The trade-in must occur on or after the 5th Rider Anniversary and prior to the Rider Maturity Date. At our discretion, we reserve the right to extend the date at which time the trade-in may occur up to the 10th anniversary of the Rider Date at any time. Any change we make will not apply to a TrueReturn Option that was added to your Contract prior to the implementation date of the change. .. The new Withdrawal Benefit Option will be made a part of your Contract on the date the existing TrueReturn Option is cancelled, provided it is cancelled for reasons other than the termination of your Contract. .. The new Withdrawal Benefit Option must be a Withdrawal Benefit Option that we make available for use with this Rider Trade-In Option. .. The issue requirements and terms and conditions of the new Withdrawal Benefit Option must be met as of the date the new Withdrawal Benefit Option is made a part of your Contract. Currently, if you select the SureIncome or SureIncome Plus Withdrawal Benefit Option by utilizing the Rider Trade-In Option, the maximum age of any Contract Owner or Annuitant on the Rider Application Date is age 85. For other Withdrawal Benefit Options that may be selected in the future utilizing the Rider Trade-In Option, issue age requirements may differ. You should consult with your sales representative before trading in your TrueReturn Option. TERMINATION OF THE TRUERETURN OPTION. The TrueReturn Option will terminate on the earliest of the following to occur: .. on the Rider Maturity Date; .. on the Payout Start Date; .. on the date your Contract is terminated; .. on the date the Option is cancelled; .. on the date we receive a Complete Request for Settlement of the Death Proceeds; or .. on the date the Option is replaced with a New Option under the Rider Trade-In Option. We will not pay an Accumulation Benefit if the TrueReturn Option is terminated for any reason prior to the Rider Maturity Date. FIDELITY VIP FREEDOM FUNDS MODEL PORTFOLIO OPTIONS. If you choose one of the Fidelity VIP Freedom Funds Model Portfolio Options or transfer your entire Contract Value into one of the Fidelity VIP Freedom Funds Model Portfolio Options we will invest your Contract Value entirely into the Fidelity VIP Freedom Sub-Account associated with the Fidelity VIP Freedom Funds Model Portfolio Option you have currently selected. The following table lists the Fidelity VIP Freedom Sub-Account associated with each Fidelity VIP Freedom Funds Model Portfolio Option: FIDELITY VIP FREEDOM FUNDS MODEL FIDELITY VIP FREEDOM PORTFOLIO OPTIONS SUB-ACCOUNT ----------------------------------------------------------------------------- Fidelity VIP Freedom Income Fund Fidelity VIP Freedom Income - Service Model Portfolio Option Class 2 Sub-Account ----------------------------------------------------------------------------- Fidelity VIP Freedom 2010 Fund Model Fidelity VIP Freedom 2010 - Service Portfolio Option Class 2 Sub-Account ----------------------------------------------------------------------------- Fidelity VIP Freedom 2020 Fund Model Fidelity VIP Freedom 2020 - Service Portfolio Option Class 2 Sub-Account ----------------------------------------------------------------------------- Fidelity VIP Freedom 2030 Fund Model Fidelity VIP Freedom 2030 - Service Portfolio Option Class 2 Sub-Account ----------------------------------------------------------------------------- The Fidelity VIP Freedom Funds Model Portfolio Options are available as Model Portfolio Options under Guarantee Option 1 and Guarantee Option 2 (Rider Date prior to October 1, 2004). For Guarantee Option 2 (Rider Date on or after October 1, 2004), the Fidelity VIP Freedom Funds are part of the available Variable Sub-Accounts listed under Model Portfolio Option 2. Please note only certain Fidelity VIP Freedom Funds Model Portfolio Options are available with your TrueReturn Option as summarized in the table under Investment Requirements above. WITHDRAWAL BENEFIT OPTIONS "Withdrawal Benefit Options" is used to refer collectively to the SureIncome Withdrawal Benefit Option, the SureIncome Plus Withdrawal Benefit Option, and the SureIncome For Life Withdrawal Benefit Option. "Withdrawal Benefit Option" is used to refer to any one of the Withdrawal Benefit Options. Some broker-dealers or banks may limit the availability of one or more Withdrawal Benefit Option. Your individual sales representative will describe any limitations to you. SUREINCOME WITHDRAWAL BENEFIT OPTION We offer the SureIncome Withdrawal Benefit Option ("SureIncome Option"), which is available for an additional fee. The SureIncome Option provides a guaranteed withdrawal benefit that gives you the right to take limited partial withdrawals that total an amount equal to your purchase payments plus any applicable credit enhancements (subject to certain restrictions). Therefore, regardless of the subsequent fluctuations in the value of your Contract Value, you are entitled to a Benefit Payment each Benefit Year until your Benefit Base is exhausted (terms defined below). The SureIncome Option guarantees an amount up to the "Benefit Payment Remaining" which will be available 31 PROSPECTUS for withdrawal from the Contract each "Benefit Year" until the "Benefit Base" (defined below) is reduced to zero. If the Contract Value is reduced to zero and the Benefit Base is still greater than zero, we will distribute an amount equal to the Benefit Base to the Contract owner as described below under the "Withdrawal Benefit Payout Phase". For purposes of the SureIncome Option, "withdrawal" means the gross amount of a withdrawal before any applicable charges such as withdrawal charges, fees, taxes or adjustments including any applicable Market Value Adjustments and surrender charges. Under the SureIncome Option, we do not treat a withdrawal that reduces the Contract Value to less than $1,000 as a withdrawal of the entire Contract Value. The "Rider Date" is the date the SureIncome Option was made a part of your Contract. The initial Benefit Year is the period between the Rider Date and the first Contract Anniversary after the Rider Date. Each subsequent Benefit Year is identical to the Contract Year. The SureIncome Option is available at issue of the Contract, or may be added later, subject to availability and issue requirements. You may not add the SureIncome Option to your Contract after Contract issue without our prior approval if your Contract Value is greater than $1,000,000 at the time you choose to add the SureIncome Option. Currently, you may have only one Withdrawal Benefit Option (SureIncome, SureIncome Plus or SureIncome For Life) in effect on your Contract at one time. You may only have one of the following in effect on your Contract at the same time: a Withdrawal Benefit Option, a TrueReturn Option, or a Retirement Income Guarantee Option. The SureIncome Option is only available if the oldest Contract Owner and oldest Annuitant are age 85 or younger on the effective date of the Rider (the "Rider Application Date"). (The maximum age may depend on your state.) The SureIncome Option is not available to be added to a Contract categorized as a Tax Sheltered Annuity as defined under Internal Revenue Code Section 403(b) at this time. We reserve the right to make the SureIncome Option available to such Contracts on a nondiscriminatory basis in the future at our discretion. Once added to your Contract, the SureIncome Option may be cancelled at any time on or after the 5th calendar year anniversary of the Rider Date by notifying us in writing in a form satisfactory to us. We may discontinue offering, at any time without prior notice, the SureIncome Option to new Contract Owners and to existing Contract Owners who did not elect the SureIncome Option prior to the date of discontinuance. WITHDRAWAL BENEFIT FACTOR The "Withdrawal Benefit Factor" is used to determine the "Benefit Payment" and Benefit Payment Remaining. We currently offer a Withdrawal Benefit Factor equal to 8%. We reserve the right to make other Withdrawal Benefit Factors available in the future for new SureIncome Options and/or to eliminate the current Withdrawal Benefit Factor. Once a Withdrawal Benefit Factor has been established for a SureIncome Option, it cannot be changed after the Rider Date unless that SureIncome Option is terminated. BENEFIT PAYMENT AND BENEFIT PAYMENT REMAINING The Benefit Payment is the amount available at the beginning of each Benefit Year that you may withdraw during that Benefit Year. The Withdrawal Benefit Factor and the Benefit Base are used to determine your Benefit Payment. The Benefit Payment Remaining is the amount remaining after any previous withdrawals in a Benefit Year that you may withdraw without reducing your Benefit Base by more than the amount of the withdrawal and without reducing your Benefit Payment available in future Benefit Years. Please note that any purchase payments or withdrawals made on a Contract Anniversary would be applied to the Benefit Year that just ended on that Contract Anniversary. The Benefit Payment Remaining is equal to the Benefit Payment at the beginning of each Benefit Year. During each Benefit Year the Benefit Payment Remaining will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) multiplied by the Withdrawal Benefit Factor (currently 8% for new SureIncome Options) and reduced by the amount of each withdrawal. The Benefit Payment Remaining will never be less than zero. On the Rider Date, the Benefit Payment is equal to the greater of: .. The Contract Value multiplied by the Withdrawal Benefit Factor (currently 8% for new SureIncome Options); or .. The value of the Benefit Payment of the previous Withdrawal Benefit Option (attached to your Contract) which is being terminated under a rider trade-in option (see "Rider Trade-In Option" below for more information), if applicable. After the Rider Date, the Benefit Payment will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) multiplied by the Withdrawal Benefit Factor and affected by withdrawals as follows: .. If the withdrawal is less than or equal to the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Payment is unchanged. .. If the withdrawal is greater than the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Payment will be the lesser of: . The Benefit Payment immediately prior to the withdrawal; or 32 PROSPECTUS . The Contract Value immediately prior to withdrawal less the amount of the withdrawal, multiplied by the Withdrawal Benefit Factor. The Benefit Payment Remaining at the time of a withdrawal during a calendar year will be increased on a nondiscriminatory basis in order to satisfy IRS minimum distribution requirements on the Contract under which this Option has been elected. The Benefit Payment Remaining will be increased by the excess of the IRS minimum distribution required on the Contract as calculated at the end of the previous calendar year and the Benefit Payment at the end of the previous calendar year. For the purposes of this calculation, the Benefit Payment Remaining will not be increased if a Withdrawal Benefit Option was not attached to this Contract as of the end of the previous calendar year. Note that any systematic withdrawal programs designed to satisfy IRS minimum distribution requirements may need to be modified to ensure guarantees under this Option are not impacted by the withdrawals. This modification may result in uneven payment amounts throughout the year. BENEFIT BASE The Benefit Base is not available as a Contract Value or Settlement Value. The Benefit Base is used solely to help calculate the Rider Fee, the amount that may be withdrawn and payments that may be received under the SureIncome Option. On the Rider Date, the Benefit Base is equal to the Contract Value. After the Rider Date, the Benefit Base will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) and decreased by withdrawals as follows: .. If the withdrawal is less than or equal to the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Base will be reduced by the amount of the withdrawal. .. If the withdrawal is greater than the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Base will be the lesser of: . The Contract Value immediately prior to withdrawal less the amount of the withdrawal; or . The Benefit Base immediately prior to withdrawal less the amount of the withdrawal. The Benefit Base may also be reduced in other situations as detailed in the "Contract Owner and Assignment of Payments or Interest" section below. IF THE BENEFIT BASE IS REDUCED TO ZERO, THIS SUREINCOME OPTION WILL TERMINATE. For numerical examples that illustrate how the values defined under the SureIncome Option are calculated, see Appendix H. CONTRACT OWNER AND ASSIGNMENT OF PAYMENTS OR INTEREST If you change the Contract Owner or assign any payments or interest under this Contract, as allowed, to any living or non-living person other than your spouse on or after the first calendar year anniversary of the Rider Date, the Benefit Base will be recalculated to be the lesser of the Contract Value and the Benefit Base at the time of assignment. CONTRACT VALUE If your Contract Value is reduced to zero due to fees or withdrawals and your Benefit Base is still greater than zero, your Contract will immediately enter the Withdrawal Benefit Payout Phase. Under the SureIncome Option, we currently do not treat a withdrawal that reduces the Contract Value to less than $1,000 as a withdrawal of the entire Contract Value. We reserve the right to change this at any time. WITHDRAWAL BENEFIT PAYOUT PHASE Under the Withdrawal Benefit Payout Phase, the Accumulation Phase of the Contract ends and the Contract enters the Payout Phase subject to the following: The "Withdrawal Benefit Payout Start Date" is the date the Withdrawal Benefit Payout Phase is entered and the Accumulation Phase of the Contract ends. No further withdrawals, purchase payments or any other actions associated with the Accumulation Phase can be made after the Withdrawal Benefit Payout Start Date. Under the Withdrawal Benefit Payout Phase, the Payout Start Date is the first day of the next Benefit Year after the Withdrawal Benefit Payout Start Date. We reserve the right to allow other Payout Start Dates on a nondiscriminatory basis without prior notice. During the Withdrawal Benefit Payout Phase, we will make scheduled fixed income payments to the Owner (or new Contract Owner) at the end of each month starting one month after the Payout Start Date. The amount of each payment will be equal to the Benefit Payment divided by 12, unless a payment frequency other than monthly is requested. The request must be in a form acceptable to us and processed by us before the first payment is made. (The amount of each payment will be adjusted accordingly; i.e., if the payment frequency requested is quarterly, the amount of each payment will be equal to the Benefit Payment divided by 4.) Payments will be made over a period certain such that total payments made will equal the Benefit Base on the Payout Start Date; therefore, the final payment may be less than each of the previous payments. If your Contract is subject to Internal Revenue Code Section 401(a)(9), the period certain cannot exceed that which is required by such section and the regulations promulgated thereunder. Therefore, the amount of each payment under the SureIncome Option may be larger so that the 33 PROSPECTUS sum of the payments made over this period equals the Benefit Base on the Payout Start Date. Additionally, if your Contract is subject to Internal Revenue Code Section 401(a)(9), we will not permit a change in the payment frequency or level. If your Contract is not subject to Internal Revenue Code Section 401(a)(9), we reserve the right to allow other payment frequencies or levels on a nondiscriminatory basis without prior notice. In no event will we allow more than one change in the payment frequency or level during a Contract Year. If the Owner dies before all payments have been made, the remaining payments will continue to be made to the new Contract Owner as scheduled. Once all scheduled payments have been paid, the Contract will terminate. Generally, you may not make withdrawals, purchase payments or take any other actions associated with the Accumulation Phase after the commencement of the Withdrawal Benefit Payout Start Date. INVESTMENT REQUIREMENTS If you add a SureIncome Option to your Contract, you must adhere to certain requirements related to the investment alternatives in which you may invest. These requirements are described in "Investment Requirements (Applicable to All Withdrawal Benefit Options)" below. CANCELLATION OF THE SUREINCOME OPTION You may not cancel the SureIncome Option prior to the 5th calendar year anniversary of the Rider Date. On or after the 5th calendar year anniversary of the Rider Date you may cancel the rider by notifying us in writing in a form satisfactory to us. We reserve the right to extend the date at which time the cancellation may occur to up to the 10th calendar year anniversary of the Rider Date at any time in our sole discretion. Any such change we make will not apply to a SureIncome Option that was added to your Contract prior to the implementation date of the change. RIDER TRADE-IN OPTION We offer a "Rider Trade-In Option" that allows you to cancel your SureIncome Option and immediately add a new Withdrawal Benefit Option ("New SureIncome Option"). We currently offer the SureIncome Option or SureIncome Plus Withdrawal Benefit Option as New SureIncome Options available under the Rider Trade-In Option. We may also offer other Options ("New Options") under the Rider Trade-In Option. However, you may only select one Option under this Rider Trade-In Option at the time you cancel your SureIncome Option. Currently, we are also making the TrueReturn Accumulation Benefit Option available at the time of your first utilization of this Rider Trade-In Option so that you have the ability to switch from the SureIncome Option to the TrueReturn Accumulation Benefit Option. We may discontinue offering the TrueReturn Option under the Rider Trade-In Option for New SureIncome Options added in the future at anytime at our discretion. If we do so, SureIncome Options issued prior to this time will continue to have a Withdrawal Benefit Option and TrueReturn Option available at the time of the first utilization of this SureIncome Rider Trade-In Option. This Rider Trade-in Option is available provided all of the following conditions are met: .. The trade-in must occur on or after the 5th calendar year anniversary of the Rider Date. We reserve the right to extend the date at which time the trade-in may occur to up to the 10th calendar year anniversary of the Rider Date at any time in our sole discretion. Any change we make will not apply to a SureIncome Option that was added to your Contract prior to the implementation date of the change. .. The New SureIncome Option or any New Option will be made a part of your Contract on the date the existing Option is cancelled, provided it is cancelled for reasons other than the termination of your Contract. .. The New SureIncome Option or any New Option must be an Option that we make available for use with this Rider Trade-In Option. .. The issue requirements and terms and conditions of the New SureIncome Option or the New Option must be met as of the date any such Option is made a part of your Contract. Currently, if you select the SureIncome or SureIncome Plus Withdrawal Benefit Option utilizing the Rider Trade-in Option, the maximum age of any Contract Owner or Annuitant on the Rider Application Date is age 85. For a New SureIncome Option or New Option that may be offered and selected in the future utilizing the Rider Trade-In Option, issue age requirements may differ. If the New Option is a New SureIncome Option, it must provide that the new Benefit Payment be greater than or equal to your current Benefit Payment as of the date the Rider Trade-In Option is exercised, if applicable. You should consult with your sales representative before trading in your SureIncome Option. DEATH OF OWNER OR ANNUITANT If the Owner or Annuitant dies and the Contract is continued under Option D of the Death of Owner or Death of Annuitant provisions of your Contract, then the SureIncome Option will continue unless the Contract Owner (or new Contract Owner) elects to cancel the SureIncome Option. If the SureIncome Option is continued, it will remain in effect until terminated. If the Contract is not continued under Option D above, then 34 PROSPECTUS the SureIncome Option will terminate on the date we receive a Complete Request for Settlement of the Death Proceeds. If the Contract death settlement options are governed by an Endorsement and such Endorsement allows for the continuation of the Contract upon the death of the Owner or Annuitant by the spouse, the SureIncome Option will continue unless the new Owner elects to cancel the SureIncome Option. If the SureIncome Option is continued, it will remain in effect until terminated pursuant to Termination of the SureIncome Option below. If the Contract is not continued, then the SureIncome Option will terminate on the date we received a complete request for settlement of the Death Proceeds. TERMINATION OF THE SUREINCOME OPTION The SureIncome Option will terminate on the earliest of the following to occur: .. The Benefit Base is reduced to zero; .. On the Payout Start Date (except if the Contract enters the Withdrawal Benefit Payout Phase as defined under the Withdrawal Benefit Payout Phase section); .. On the date the Contract is terminated; .. On the date the SureIncome Option is cancelled; .. On the date we receive a Complete Request for Settlement of the Death Proceeds; or .. On the date the SureIncome Option is replaced with a New Option under the Rider Trade-In Option. SUREINCOME PLUS WITHDRAWAL BENEFIT OPTION We offer the SureIncome Plus Withdrawal Benefit Option ("SureIncome Plus Option"), except in a limited number of states where it is not currently available, for an additional fee. The SureIncome Plus Option provides a guaranteed withdrawal benefit that gives you the right to take limited partial withdrawals, which may increase during the first 10 years of the Option, that total an amount equal to your purchase payments plus any applicable credit enhancements, subject to certain restrictions. Therefore, regardless of the subsequent fluctuations in the value of your Contract Value, you are entitled to a Benefit Payment each Benefit Year until your Benefit Base is exhausted (see defined terms below). The SureIncome Plus Option also provides an additional death benefit option. The SureIncome Plus Option guarantees an amount up to the "Benefit Payment Remaining" which will be available for withdrawal from the Contract each "Benefit Year" until the "Benefit Base" (defined below) is reduced to zero. If the Contract Value is reduced to zero and the Benefit Base is still greater than zero, we will distribute an amount equal to the Benefit Base to the Contract Owner as described below under the "Withdrawal Benefit Payout Phase". Prior to the commencement of the Withdrawal Benefit Payout Phase, the SureIncome Plus Option also provides an additional death benefit option, the SureIncome Return of Premium Death Benefit ("SureIncome ROP Death Benefit"). This death benefit option is described below under "Death of Owner or Annuitant" and in the DEATH BENEFITS section starting on page 79. For purposes of the SureIncome Plus Option, "withdrawal" means the gross amount of a withdrawal before any applicable charges such as withdrawal charges, fees, taxes or adjustments including any applicable Market Value Adjustments and surrender charges. Under the SureIncome Plus Option, we do not treat a withdrawal that reduces the Contract Value to less than $1,000 as a withdrawal of the entire Contract Value. The "Rider Date" is the date the SureIncome Plus Option was made a part of your Contract. The initial Benefit Year is the period between the Rider Date and the first Contract Anniversary after the Rider Date. Each subsequent Benefit Year is identical to the Contract Year. The SureIncome Plus Option is available at issue of the Contract, or may be added later, subject to availability and issue requirements. You may not add the SureIncome Plus Option to your Contract after Contract issue without our prior approval if your Contract Value is greater than $1,000,000 at the time you choose to add the SureIncome Plus Option. Currently, you may have only one Withdrawal Benefit Option in effect on your Contract at one time. You may only have one of the following in effect on your Contract at the same time: a Withdrawal Benefit Option, a TrueReturn Option, or a Retirement Income Guarantee Option. The SureIncome Plus Option is only available if the oldest Contract Owner and oldest Annuitant are age 85 or younger on the effective date of the Rider (the "Rider Application Date"). (The maximum age may depend on your state.) The SureIncome Plus Option may not be added to a Contract categorized as a Tax Sheltered Annuity as defined under Internal Revenue Code Section 403(b) at this time. We reserve the right to make the SureIncome Plus Option available to such Contracts on a nondiscriminatory basis in the future at our discretion. Once added to your Contract, the SureIncome Plus Option may not be cancelled at any time. We may discontinue offering the SureIncome Plus Option at any time to new Contract Owners and to existing Contract Owners who did not elect the SureIncome Plus Option prior to the date of discontinuance. WITHDRAWAL BENEFIT FACTOR The "Withdrawal Benefit Factor" is used to determine the "Benefit Payment" and Benefit Payment Remaining. We currently offer a Withdrawal Benefit Factor equal to 8%. We reserve the right to make other Withdrawal Benefit Factors available in the future for new 35 PROSPECTUS SureIncome Plus Options and/or to eliminate the current Withdrawal Benefit Factor. Once a Withdrawal Benefit Factor has been established for a SureIncome Plus Option, it cannot be changed after the Rider Date. BENEFIT PAYMENT AND BENEFIT PAYMENT REMAINING The Benefit Payment is the amount available at the beginning of each Benefit Year that you may withdraw during that Benefit Year. The Withdrawal Benefit Factor and the Benefit Base are used to determine your Benefit Payment. The Benefit Payment Remaining is the amount remaining after any previous withdrawals in a Benefit Year that you may withdraw without reducing your Benefit Base and your SureIncome ROP Death Benefit by more than the amount of the withdrawal and without reducing your Benefit Payment available in future Benefit Years. Please note that any purchase payments or withdrawals made on a Contract Anniversary would be applied to the Benefit Year that just ended on that Contract Anniversary. The Benefit Payment Remaining is equal to the Benefit Payment at the beginning of each Benefit Year. During each Benefit Year the Benefit Payment Remaining will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) multiplied by the Withdrawal Benefit Factor (currently 8% for new SureIncome Plus Options) and reduced by the amount of each withdrawal. The Benefit Payment Remaining will never be less than zero. On the Rider Date, the Benefit Payment is equal to the greater of: .. The Contract Value multiplied by the Withdrawal Benefit Factor (currently 8% for new SureIncome Plus Options); or .. The value of the Benefit Payment of the previous Withdrawal Benefit Option (attached to your Contract) which is being terminated under a rider trade-in option, if applicable. See RIDER TRADE-IN OPTION, above, under SUREINCOME WITHDRAWAL BENEFIT OPTION for more information. After the Rider Date, the Benefit Payment will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) multiplied by the Withdrawal Benefit Factor and affected by withdrawals as follows: .. If the withdrawal is less than or equal to the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Payment is unchanged. If the withdrawal is greater than the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Payment will be the lesser of: .. The Benefit Payment immediately prior to the withdrawal; or .. The Contract Value immediately prior to withdrawal less the amount of the withdrawal, multiplied by the Withdrawal Benefit Factor. As used in the above calculation, Contract Value incorporates the impact of any purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) received on the date of this withdrawal, but before the application of any SureIncome Plus Withdrawal Benefit Option Fee, Spousal Protection Benefit Option Fee, Spousal Protection Benefit Option for Custodial Individual Retirement Accounts Fee or Contract Maintenance Charge that may be applicable. On each of the ten Contract Anniversaries after the Rider Date, the amount of the Benefit Payment may be increased based upon the maximum anniversary value of the Contract according to the following calculation. The Benefit Payment will be recalculated to the greater of: .. The Benefit Payment following the application of all purchase payments and withdrawals on that Contract Anniversary; and .. The Contract Value on that Contract Anniversary, following the application of all purchase payments, withdrawals, and expenses multiplied by the Withdrawal Benefit Factor. The Benefit Payment Remaining at the time of a withdrawal during a calendar year will be increased on a nondiscriminatory basis in order to satisfy IRS minimum distribution requirements on the Contract under which this Option has been elected. The Benefit Payment Remaining will be increased by the excess of the IRS minimum distribution required on the Contract as calculated at the end of the previous calendar year and the Benefit Payment at the end of the previous calendar year. For the purposes of this calculation, the Benefit Payment Remaining will not be increased if a Withdrawal Benefit Option was not attached to this Contract as of the end of the previous calendar year. Note that any systematic withdrawal programs designed to satisfy IRS minimum distribution requirements may need to be modified to ensure guarantees under this Option are not impacted by the withdrawals. This modification may result in uneven payment amounts throughout the year. BENEFIT BASE The Benefit Base is not available as a Contract Value or Settlement Value. The Benefit Base is used solely to help calculate the Rider Fee, the amount that may be withdrawn and payments that may be received under the SureIncome Plus Option. On the Rider Date, the Benefit Base is equal to the Contract Value. After the Rider Date, the Benefit Base will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) and decreased by withdrawals as follows: .. If the withdrawal is less than or equal to the Benefit Payment Remaining in effect immediately prior to 36 PROSPECTUS the withdrawal, the Benefit Base will be reduced by the amount of the withdrawal. .. If the withdrawal is greater than the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Base will be the lesser of: . The Contract Value immediately prior to the withdrawal less the amount of the withdrawal; or . The Benefit Base immediately prior to the withdrawal less the amount of the withdrawal. As used in the above calculation, Contract Value incorporates the impact of any purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) received on the date of this withdrawal, but before the application of any SureIncome Plus Withdrawal Benefit Option Fee, Spousal Protection Benefit Option Fee, Spousal Protection Benefit Option for Custodial Individual Retirement Accounts Fee or Contract Maintenance Charge that may be applicable. On each of the ten Contract Anniversaries after the Rider Date, the amount of the Benefit Base may be increased based upon the maximum anniversary value of the Contract according to the following calculation. The Benefit Base will be recalculated to the greater of: .. The Benefit Base following the application of all purchase payments and withdrawals on that Contract Anniversary; and .. The Contract Value on that Contract Anniversary, following the application of all purchase payments, withdrawals and expenses. The Benefit Base may also be reduced in other situations as detailed in the "Contract Owner and Assignment of Payments or Interest" section below. IF THE BENEFIT BASE IS REDUCED TO ZERO, THIS SUREINCOME PLUS OPTION WILL TERMINATE. For numerical examples that illustrate how the values defined under the SureIncome Plus Option are calculated, see Appendix I. CONTRACT OWNER AND ASSIGNMENT OF PAYMENTS OR INTEREST If you change the Contract Owner or assign any payments or interest under the Contract, as allowed, to any living or non-living person other than your spouse on or after the first calendar year anniversary of the Rider Date, the Benefit Base will be recalculated to be the lesser of the Contract Value or the Benefit Base at the time of assignment. CONTRACT VALUE If your Contract Value is reduced to zero due to fees or withdrawals and your Benefit Base is still greater than zero, your Contract will immediately enter the Withdrawal Benefit Payout Phase. Under the SureIncome Plus Option, we currently do not treat a withdrawal that reduces the Contract Value to less than $1,000 as a withdrawal of the entire Contract Value. We reserve the right to change this at any time. WITHDRAWAL BENEFIT PAYOUT PHASE Under the Withdrawal Benefit Payout Phase, the Accumulation Phase of the Contract ends and the Contract enters the Payout Phase. The "Withdrawal Benefit Payout Start Date" is the date the Withdrawal Benefit Payout Phase is entered and the Accumulation Phase of the Contract ends. No further withdrawals, purchase payments or any other actions associated with the Accumulation Phase of the Contract can be made after the Withdrawal Benefit Payout Start Date. Since the Accumulation Phase ends at this point, the SureIncome ROP Death Benefit no longer applies. Under the Withdrawal Benefit Payout Phase, the Payout Start Date is the first day of the next Benefit Year after the Withdrawal Benefit Payout Start Date. We reserve the right to allow other Payout Start Dates on a nondiscriminatory basis without prior notice. During the Withdrawal Benefit Payout Phase, we will make scheduled fixed income payments to the Owner (or new Contract Owner) at the end of each month starting one month after the commencement of the Payout Start Date. The amount of each payment will be equal to the Benefit Payment divided by 12, unless a payment frequency other than monthly is requested. The request must be in a form acceptable to us and processed by us before the first payment is made. (The amount of each payment will be adjusted accordingly; i.e., if the payment frequency requested is quarterly, the amount of each payment will be equal to the Benefit Payment divided by 4.) Payments will be made over a period certain such that total payments made will equal the Benefit Base on the Payout Start Date; therefore, the final payment may be less than each of the previous payments. If your Contract is subject to Internal Revenue Code Section 401(a)(9), the period certain cannot exceed that which is required by such section and the regulations promulgated thereunder. Therefore, the amount of each payment under the SureIncome Plus Option may be larger so that the sum of the payments made over this period equals the Benefit Base on the Payout Start Date. Additionally, if your Contract is subject to Internal Revenue Code Section 401(a)(9), we will not permit a change in the payment frequency or level. If your Contract is not subject to Internal Revenue Code Section 401(a)(9), we reserve the right to allow other payment frequencies or levels on a nondiscriminatory basis without prior notice. In no event will we allow more than one change in the payment frequency or level during a Contract Year. If the Owner dies before all payments have been made, the remaining payments will continue to be made to the new Contract Owner as scheduled. 37 PROSPECTUS Once all scheduled payments have been paid, the Contract will terminate. Generally, you may not make withdrawals, purchase payments or take any other actions associated with the Accumulation Phase after the Withdrawal Benefit Payout Start Date. INVESTMENT REQUIREMENTS If you add a SureIncome Plus Option to your Contract, you must adhere to certain requirements related to the investment alternatives in which you may invest. These requirements are described in "Investment Requirements (Applicable to All Withdrawal Benefit Options)" below. DEATH OF OWNER OR ANNUITANT If the Owner or the Annuitant dies and the Contract is continued under Option D of the Death of Owner or Death of Annuitant provisions of your Contract, then the SureIncome Plus Option will continue unless the Contract Owner (or new Contract Owner) elects to cancel the SureIncome Plus Option. If the SureIncome Plus Option is continued, it will remain in effect until terminated. If the Contract is not continued under Option D above, then the SureIncome Plus Option will terminate on the date we receive a Complete Request for Settlement of the Death Proceeds. If the Contract death settlement options are governed by an Endorsement and such Endorsement allows for the continuation of the Contract upon the death of the Owner or Annuitant by the spouse, the SureIncome Plus Option will continue unless the new Owner elects to cancel the SureIncome Plus Option. If the SureIncome Plus Option is continued, it will remain in effect until terminated pursuant to Termination of the SureIncome Plus Option below. If the Contract is not continued, then the SureIncome Plus Option will terminate on the date we received a complete request for settlement of the Death Proceeds. The SureIncome Plus Option also makes available the SureIncome ROP Death Benefit. On the Rider Date, the SureIncome ROP Death Benefit is equal to the Contract Value. After the Rider Date, the SureIncome ROP Death Benefit will be increased by purchase payments (and Credit Enhancements in the case of Allstate Advisor Plus Contracts) and decreased by withdrawals as follows: .. If the withdrawal is less than or equal to the Benefit Payment Remaining in effect immediately prior to the withdrawal, the SureIncome ROP Death Benefit will be reduced by the amount of the withdrawal. .. If the withdrawal is greater than the Benefit Payment Remaining in effect immediately prior to the withdrawal, the SureIncome ROP Death Benefit will be the lesser of: . The Contract Value immediately prior to withdrawal less the amount of the withdrawal; or . The SureIncome ROP Death Benefit immediately prior to withdrawal less the amount of the withdrawal. As used in the above calculation, Contract Value incorporates the impact of any purchase payments (and Credit Enhancements in the case of Allstate Advisor Plus Contracts) received on the date of this withdrawal, but before the application of any SureIncome Plus Withdrawal Benefit Option Fee, Spousal Protection Benefit Option Fee, Spousal Protection Benefit Option for Custodial Individual Retirement Accounts Fee or Contract Maintenance Charge that may be applicable. For numerical examples that illustrate how the SureIncome ROP Death Benefit under the SureIncome Plus Option is calculated, see Appendix I. Refer to the Death Benefits section (page 73) for more details on the SureIncome ROP Death Benefit. TERMINATION OF THE SUREINCOME PLUS OPTION The SureIncome Plus Option will terminate on the earliest of the following to occur: .. The Benefit Base is reduced to zero; .. On the Payout Start Date (except if the Contract enters the Withdrawal Benefit Payout Phase as defined under the Withdrawal Benefit Payout Phase section); .. On the date the Contract is terminated; .. On the date the SureIncome Plus Option is cancelled as detailed under Death of Owner or Annuitant above; or .. On the date we receive a Complete Request for Settlement of the Death Proceeds. SUREINCOME FOR LIFE WITHDRAWAL BENEFIT OPTION We offer the SureIncome For Life Withdrawal Benefit Option ("SureIncome For Life Option"), except in a limited number of states where it is not currently available, for an additional fee. The SureIncome For Life Option provides a guaranteed withdrawal benefit that gives you the right to take limited partial withdrawals, which may increase during the first 10 years of the Option, as long as the SureIncome Covered Life is alive, subject to certain restrictions. Therefore, regardless of subsequent fluctuations in the value of your Contract Value, you are entitled to a Benefit Payment each Benefit Year until the death of the SureIncome Covered Life (as defined below), subject to certain restrictions. The SureIncome For Life Option also provides an additional death benefit option. The SureIncome For Life Option guarantees an amount up to the "Benefit Payment Remaining" which will be available for withdrawal from the Contract each "Benefit Year" as long as the SureIncome Covered Life is alive, subject to certain restrictions. The "SureIncome Covered Life" is the oldest Contract Owner, or the oldest 38 PROSPECTUS Annuitant if the Contact Owner is a non-living entity, on the Rider Date. If the Contract Value is reduced to zero and the Benefit Payment is still greater than zero, we will distribute an amount equal to the Benefit Payment each year to the Contract Owner as described below under the "Withdrawal Benefit Payout Phase" as long as the SureIncome Covered Life is alive. Prior to the commencement of the Withdrawal Benefit Payout Phase, the SureIncome For Life Option also provides an additional death benefit option, the SureIncome Return of Premium Death Benefit ("SureIncome ROP Death Benefit"). This Option is described below under "Death of Owner or Annuitant" and in the DEATH BENEFITS section starting on page 73. For purposes of the SureIncome For Life Option, "withdrawal" means the gross amount of a withdrawal before any applicable charges such as withdrawal charges, fees, taxes or adjustments including any applicable Market Value Adjustments and surrender charges. Under the SureIncome For Life Option, we do not treat a withdrawal that reduces the Contract Value to less than $1,000 as a withdrawal of the entire Contract Value. The "Rider Date" is the date the SureIncome For Life Option was made a part of your Contract. The initial Benefit Year is the period between the Rider Date and the first Contract Anniversary after the Rider Date. Each subsequent Benefit Year is identical to the Contract Year. The SureIncome For Life Option is available at issue of the Contract, or may be added later, subject to availability and issue requirements. You may not add the SureIncome For Life Option to your Contract after Contract issue without our prior approval if your Contract Value is greater than $1,000,000 at the time you choose to add the SureIncome For Life Option. Currently, you may have only one Withdrawal Benefit Option in effect on your Contract at one time. You may only have one of the following in effect on your Contract at the same time: a Withdrawal Benefit Option, a TrueReturn Option, or a Retirement Income Guarantee Option. The SureIncome For Life Option is only available if the oldest Contract Owner or the oldest Annuitant, if the Contract Owner is a non-living entity (i.e., the SureIncome Covered Life) is between the ages of 50 and 79, inclusive, on the effective date of the Rider (the "Rider Application Date"). (The maximum age may depend on your state.) The SureIncome For Life Option may not be added to a Contract categorized as a Tax Sheltered Annuity as defined under Internal Revenue Code Section 403(b) at this time. We reserve the right to make the SureIncome For Life Option available to such Contracts on a nondiscriminatory basis in the future at our discretion. Once added to your Contract, the SureIncome For Life Option may not be cancelled at any time. We may discontinue offering the SureIncome For Life Option at any time to new Contract Owners and to existing Contract Owners who did not elect the SureIncome For Life Option prior to the date of discontinuance. WITHDRAWAL BENEFIT FACTOR The "Withdrawal Benefit Factor" is used to determine the "Benefit Payment" and Benefit Payment Remaining. Prior to the earlier of the date of the first withdrawal after the issuance of the SureIncome For Life Option or the date the Contract enters the Withdrawal Benefit Payout Phase, the Withdrawal Benefit Factor used in these determinations may change as shown below. Generally speaking, during this period the Withdrawal Benefit Factor will increase as the SureIncome Covered Life grows older. On the earlier of the date of the first withdrawal after the issuance of the SureIncome for Life Option or the date the Contract enters the Withdrawal Benefit Payout Phase, the Withdrawal Benefit Factor will be fixed at the then applicable rate, based on the then current attained age of the SureIncome Covered Life, and will be used in all subsequent determinations of Benefit Payments and Benefit Payments Remaining. After this date the Withdrawal Benefit Factor will not change. We currently offer the following Withdrawal Benefit Factors: The Withdrawal Benefit Factors and age ranges applicable to your Contract are set on the Rider Date. They cannot be changed after the SureIncome For Life Option has been added to your Contract. We reserve the right to make other Withdrawal Benefit Factors available in the future for new SureIncome For Life Options, change the age ranges to which they apply, and/or to eliminate currently available Withdrawal Benefit Factors. BENEFIT PAYMENT AND BENEFIT PAYMENT REMAINING The Benefit Payment is the amount available at the beginning of each Benefit Year that you may withdraw during that Benefit Year. The Withdrawal Benefit Factor and the Benefit Base are used to determine your Benefit Payment. The Benefit Payment Remaining is the amount remaining after any previous withdrawals in a Benefit Year that you may withdraw without reducing your Benefit Base and your SureIncome ROP Death Benefit by more than the amount of the withdrawal and without reducing your Benefit Payment available in future Benefit Years. Please note that any premiums or withdrawals made on a Contract Anniversary are applied to the Benefit Year that just ended on that Contract Anniversary. The Benefit Payment Remaining is equal to the Benefit Payment at the beginning of each Benefit Year. On the Rider Date, the Benefit Payment is equal to the Contract Value multiplied by the Withdrawal Benefit Factor based on the current attained age of the SureIncome Covered Life. 39 PROSPECTUS
ATTAINED AGE OF SUREINCOME COVERED LIFE WITHDRAWAL BENEFIT FACTOR ----------------------- ------------------------- 50 - 59 4% 60 - 69 5% 70 + 6% After the Rider Date, the Benefit Payment and Benefit Payment Remaining will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) multiplied by the Withdrawal Benefit Factor based on the current attained age of the SureIncome Covered Life. On the date of the first withdrawal after the Rider Date the Benefit Payment and Benefit Payment Remaining will equal the Withdrawal Benefit Factor based on the current attained age of the SureIncome Covered Life multiplied by the Benefit Base immediately after application of any purchase payments, but prior to the withdrawal on that date. The Withdrawal Benefit Factor used in all future calculations will not change. After the first withdrawal, the Benefit Payment Remaining will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) multiplied by the Withdrawal Benefit Factor. The Benefit Payment Remaining is reduced by the amount of any withdrawal. The Benefit Payment Remaining will never be less than zero. After the first withdrawal, the Benefit Payment will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) multiplied by the Withdrawal Benefit Factor. The Benefit Payment is affected by withdrawals as follows: .. If a withdrawal is less than or equal to the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Payment is unchanged. .. If a withdrawal is greater than the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Payment will be the lesser of: . The Benefit Payment immediately prior to the withdrawal; or . The Benefit Base immediately after the withdrawal multiplied by the Withdrawal Benefit Factor. IF THE BENEFIT PAYMENT IS REDUCED TO ZERO, THE SUREINCOME FOR LIFE OPTION WILL TERMINATE. On each of the ten Contract Anniversaries after the Rider Date, the amount of the Benefit Payment may be increased based upon the maximum anniversary value of the Contract according to the following calculation. The Benefit Payment will be recalculated to the greater of: .. The Benefit Payment following application of all purchase payments and withdrawals on that Contract Anniversary; or .. The Contract Value on that Contract Anniversary, following the application of all purchase payments, withdrawals and expenses, multiplied by the Withdrawal Benefit Factor currently applicable. The Benefit Payment Remaining at the time of a withdrawal during a calendar year will be increased on a nondiscriminatory basis in order to satisfy IRS minimum distribution requirements on the Contract under which this Option has been elected. The Benefit Payment Remaining will be increased by the excess of the IRS minimum distribution required on the Contract as calculated at the end of the previous calendar year and the Benefit Payment at the end of the previous calendar year. For the purposes of this calculation, the Benefit Payment Remaining will not be increased if a Withdrawal Benefit Option was not attached to this Contract as of the end of the previous calendar year. Note that any systematic withdrawal programs designed to satisfy IRS minimum distribution requirements may need to be modified to ensure guarantees under this Option are not impacted by the withdrawals. This modification may result in uneven payment amounts throughout the year. BENEFIT BASE The Benefit Base is not available as a Contract Value or Settlement Value. The Benefit Base is used solely to help calculate the Rider Fee, the amount that may be withdrawn and payments that may be received under the SureIncome For Life Option. On the Rider Date, the Benefit Base is equal to the Contract Value. After the Rider Date, the Benefit Base will be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) and decreased by withdrawals as follows: .. If the withdrawal is less than or equal to the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Base will be reduced by the amount of the withdrawal. .. If the withdrawal is greater than the Benefit Payment Remaining in effect immediately prior to the withdrawal, the Benefit Base will be the lesser of: . The Contract Value immediately prior to withdrawal less the amount of the withdrawal; or . The Benefit Base immediately prior to withdrawal less the amount of the withdrawal (this value cannot be less than zero). As used in the above calculation, Contract Value incorporates the impact of any purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) received on the date of this withdrawal, but before the application of any SureIncome For Life Withdrawal Benefit Option Fee, Spousal Protection Benefit Option Fee, Spousal Protection Benefit Option for Custodial Individual Retirement Accounts Fee or Contract Maintenance Charge that may be applicable. On each of the ten Contract Anniversaries after the Rider Date, the amount of the Benefit Base may be increased based upon the maximum anniversary value of 40 PROSPECTUS the Contract according to the following calculation. The Benefit Base will be recalculated to the greater of: .. The Benefit Base following the application of all purchase payments and withdrawals on that Contract Anniversary; and .. The Contract Value on that Contract Anniversary, following the application of all purchase payments, withdrawals and expenses. For numerical examples that illustrate how the values defined under the SureIncome For Life Option are calculated, see Appendix J. CONTRACT VALUE If your Contract Value is reduced to zero due to fees or withdrawals and your Benefit Payment is still greater than zero, your Contract will immediately enter the Withdrawal Benefit Payout Phase. Under the SureIncome For Life Option, we currently do not treat a withdrawal that reduces the Contract Value to less than $1,000 as a withdrawal of the entire Contract Value. We reserve the right to change this at any time. WITHDRAWAL BENEFIT PAYOUT PHASE Under the Withdrawal Benefit Payout Phase, the Accumulation Phase of the Contract ends and the Contract enters the Payout Phase. The "Withdrawal Benefit Payout Start Date" is the date the Withdrawal Benefit Payout Phase is entered and the Accumulation Phase of the Contract ends. No further withdrawals, purchase payments or any other actions associated with the Accumulation Phase of the Contract can be made after the Withdrawal Benefit Payout Start Date. Since the Accumulation Phase of the Contract ends at this point, the SureIncome ROP Death Benefit no longer applies. Under the Withdrawal Benefit Payout Phase, the Payout Start Date is the first day of the next Benefit Year after the Withdrawal Benefit Payout Start Date. We reserve the right to allow other Payout Start Dates on a nondiscriminatory basis without prior notice. During the Withdrawal Benefit Payout Phase, we will make scheduled fixed income payments to the Owner (or new Contract Owner) at the end of each month starting one month after the Payout Start Date. The amount of each payment will be equal to the Benefit Payment divided by 12, unless a payment frequency other than monthly is requested. The request must be in a form acceptable to us and processed by us before the first payment is made. (The amount of each payment will be adjusted accordingly; i.e. if the payment frequency requested is quarterly, the amount of each payment will be equal to the Benefit Payment divided by 4.) Payments will be made until the later of the death of the SureIncome Covered Life or over a period certain based on the total payments made equaling at least the Benefit Base on the Payout Start Date. If your Contract is subject to Internal Revenue Code Section 401(a)(9), the period certain cannot exceed that which is required by such section and the regulations promulgated thereunder. Therefore, the amount of each payment under the SureIncome For Life Option may be larger during the period certain so that the sum of the payments made over this period equals the Benefit Base on the Payout Start Date. Additionally, if your Contract is subject to Internal Revenue Code Section 401(a)(9), we will not permit a change in the payment frequency or level. If your Contract is not subject to Internal Revenue Code Section 401(a)(9), we reserve the right to allow other payment frequencies or levels on a nondiscriminatory basis without prior notice. In no event will we allow more than one change in the payment frequency or level during a Contract Year. If the Owner dies before all payments have been made, the remaining payments will continue to be made to the new Contract Owner as scheduled. Once all scheduled payments have been paid, the Contract will terminate. Generally, you may not make withdrawals, purchase payments or take any other actions associated with the Accumulation Phase after the commencement of the Withdrawal Benefit Payout Start Date. INVESTMENT REQUIREMENTS If you add a SureIncome For Life Option to your Contract, you must adhere to certain requirements related to the investment alternatives in which you may invest. These requirements are described in "Investment Requirements (Applicable to All Withdrawal Benefit Options)" below. DEATH OF OWNER OR ANNUITANT If the SureIncome Covered Life dies during the Accumulation Phase of the Contract, the SureIncome For Life Option will terminate on the date of the SureIncome Covered Life's death. If the Contract Owner or the Annuitant who is not the SureIncome Covered Life dies and the Contract is continued under Option D of the Death of Owner or Death of Annuitant provisions of your Contract, then the SureIncome For Life Option will continue unless the Contract Owner (or new Contract Owner) elects to cancel the SureIncome For Life Option. If the SureIncome For Life Option is continued, it will remain in effect until terminated. If the Contract is not continued under Option D, then the SureIncome For Life Option will terminate on the date we receive a Complete Request for Settlement of the Death Proceeds. The SureIncome For Life Option also makes available the SureIncome ROP Death Benefit. The SureIncome ROP Death Benefit is only available upon the death of the SureIncome Covered Life. If a Contract Owner, Annuitant or Co-Annuitant who is not the SureIncome Covered Life dies, the SureIncome ROP Death Benefit is not applicable. On the Rider Date, the SureIncome 41 PROSPECTUS ROP Death Benefit is equal to the Contract Value. After the Rider Date, the SureIncome ROP Death Benefit will be increased by purchase payments (and Credit Enhancements in the case of Allstate Advisor Plus Contracts) and decreased by withdrawals as follows: .. If the withdrawal is less than or equal to the Benefit Payment Remaining in effect immediately prior to the withdrawal, the SureIncome ROP Death Benefit will be reduced by the amount of the withdrawal. .. If the withdrawal is greater than the Benefit Payment Remaining in effect immediately prior to the withdrawal, the SureIncome ROP Death Benefit will be the lesser of: . The Contract Value immediately prior to withdrawal less the amount of the withdrawal; or . The SureIncome ROP Death Benefit immediately prior to withdrawal less the amount of the withdrawal. As used in the above calculation, Contract Value incorporates the impact of any purchase payments (and Credit Enhancements in the case of Allstate Advisor Plus Contracts) received on the date of this withdrawal, but before the application of any SureIncome For Life Withdrawal Benefit Option Fee, Spousal Protection Benefit Option Fee, Spousal Protection Benefit Option for Custodial Individual Retirement Accounts Fee or Contract Maintenance Charge applicable. For numerical examples that illustrate how the SureIncome ROP Death Benefit under the SureIncome For Life Option is calculated, see Appendix J. Refer to the DEATH BENEFITS section page 73 for more details on the SureIncome ROP Death Benefit. TERMINATION OF THE SUREINCOME FOR LIFE OPTION The SureIncome For Life Option will terminate on the earliest of the following to occur: .. The Benefit Payment is reduced to zero; .. On the Payout Start Date (except if the Contract enters the Withdrawal Benefit Payout Phase as defined under the Withdrawal Benefit Payout Phase section); .. On the date the Contract is terminated; .. On the date the SureIncome Covered Life is removed from the Contract for any reason, and is no longer a Contract Owner or Annuitant under the Contract (if the Covered Life continues as only the Beneficiary, the Option will terminate); .. On the date the SureIncome For Life Option is cancelled as detailed under Death of Owner or Annuitant section above; .. On the date we receive a Complete Request for Settlement of the Death Proceeds; or .. On the date the SureIncome Covered Life dies if the SureIncome Covered Life dies prior to the Payout Start Date. INVESTMENT REQUIREMENTS (APPLICABLE TO ALL WITHDRAWAL BENEFIT OPTIONS) If you add a Withdrawal Benefit Option to your Contract, you must adhere to certain requirements related to the investment alternatives in which you may invest. The specific requirements are described below in more detail and will depend on your current Model Portfolio Option and your Withdrawal Benefit Factor(s). These requirements may include, but are not limited to, maximum investment limits on certain Variable Sub-Accounts or on certain Fixed Account Options, exclusion of certain Variable Sub-Accounts or of certain Fixed Account Options, required minimum allocations to certain Variable Sub-Accounts, and restrictions on transfers to or from certain investment alternatives. We may also require that you use the Automatic Portfolio Rebalancing Program. We may change the specific requirements that are applicable at any time in our sole discretion. Any changes we make will not apply to a Withdrawal Benefit Option that was made a part of your Contract prior to the implementation date of the change, except for changes made due to a change in investment alternatives available under the Contract. This restriction does not apply to a New SureIncome Option or to a New Option elected pursuant to the Rider Trade-In Option. We reserve the right to have requirements unique to specific Withdrawal Benefit Factors if we make other Withdrawal Benefit Factors available in the future including specific model portfolio options ("Model Portfolio Options") as described below available only to certain Withdrawal Benefit Factors. When you add a Withdrawal Benefit Option to your Contract, you must allocate your entire Contract Value as follows: 1) to a Model Portfolio Option available as described below; 2) to the DCA Fixed Account Option and then transfer all purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) and interest to an available Model Portfolio Option; or 3) to a combination of (1) and (2) above. For (2) and (3) above, the requirements for the DCA Fixed Account Option must be met. See the "Dollar Cost Averaging Fixed Account Option" section of this prospectus for more information. On the Rider Date, you must select only one of the Model Portfolio Options to which to allocate your Contract Value. After the Rider Date, you may transfer your entire Contract Value to any of the other available Model Portfolio Options. We currently offer several Model Portfolio Options. The Model Portfolio Options that are available may differ depending upon the effective date of your Withdrawal Benefit Option and your 42 PROSPECTUS Withdrawal Benefit Factor. Please refer to the Model Portfolio Option and TrueBalance/SM/ Model Portfolio Options sections of this prospectus for more details. We may add other Model Portfolio Options in the future. We also may remove Model Portfolio Options in the future anytime prior to the date you select such Model Portfolio Option. In addition, if the investment alternatives available under the Contract change, we may revise the Model Portfolio Options. The following table summarizes the Model Portfolio Options currently available for use: * MODEL PORTFOLIO OPTION 1 - -------------------------------------------------------------------------------- * TrueBalance Conservative Model Portfolio Option * TrueBalance Moderately Conservative Model Portfolio Option * TrueBalance Moderate Model Portfolio Option * TrueBalance Moderately Aggressive Model Portfolio Option * TrueBalance Aggressive Model Portfolio Option - -------------------------------------------------------------------------------- NOTE: THE TRUEBALANCE MODEL PORTFOLIO OPTIONS WERE FIRST MADE AVAILABLE IN CONNECTION WITH A WITHDRAWAL BENEFIT OPTION ON MAY 1, 2005. ANY TRUEBALANCE MODEL PORTFOLIOS OFFERED UNDER THE TRUEBALANCE ASSET ALLOCATION PROGRAM PRIOR TO MAY 1, 2005, MAY NOT BE USED IN CONNECTION WITH A WITHDRAWAL BENEFIT OPTION. You may not allocate any of your Contract Value to the Standard Fixed Account Option or to the Market Value Adjusted Fixed Account Option. You must transfer any portion of your Contract Value that is allocated to the Standard Fixed Account Option or to the Market Value Adjusted Fixed Account Option to the Variable Sub-Accounts prior to adding a Withdrawal Benefit Option to your Contract. Transfers from the Market Value Adjusted Fixed Account Option may be subject to a Market Value Adjustment. You may allocate any portion of your purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) to the DCA Fixed Account Option on the Rider Date, provided the DCA Fixed Account Option is available with your Contract and in your state. See the "Dollar Cost Averaging Fixed Account Option" section of this prospectus for more information. We use the term "Transfer Period Account" to refer to each purchase payment allocation made to the DCA Fixed Account Option for a specified term length. At the expiration of a Transfer Period Account, any remaining amounts in the Transfer Period Account will be transferred to the Variable Sub-Accounts according to your most recent percentage allocation selections for your Model Portfolio Option. Any subsequent purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made to your Contract will be allocated to the Variable Sub-Accounts according to your specific instructions or your allocation for the previous purchase payment (for Model Portfolio Option 1) or the percentage allocation for your current Model Portfolio Option (for TrueBalance Model Portfolio Options) unless you request that the purchase payment (and Credit Enhancement for Allstate Advisor Plus Contracts) be allocated to the DCA Fixed Account Option. Purchase payments allocated to the DCA Fixed Account Option must be $100 or more. Any withdrawals you request will reduce your Contract Value invested in each of the investment alternatives on a pro rata basis in the proportion that your Contract Value in each bears to your total Contract Value in all investment alternatives, unless you request otherwise. MODEL PORTFOLIO OPTION 1. If you choose Model Portfolio Option 1 or transfer your entire Contract Value into Model Portfolio Option 1, we have divided the Variable Sub-Accounts into two separate categories: "Available" and "Excluded." Currently, you may allocate up to 100% of your Contract Value to the Available Variable Sub-Accounts in any manner you choose. You may not allocate ANY PORTION of your Contract Value to the Excluded Variable Sub-Accounts. You may make transfers among any of the Available Variable Sub-Accounts. However, each transfer you make will count against the 12 transfers you can make each Contract Year without paying a transfer fee. Currently the Available Variable Sub-Accounts and the Excluded Variable Sub-Accounts are as follows (1): Available - -------------------------------------------------------------------------------- Fidelity VIP Freedom Income - Service Class 2 Sub-Account Fidelity VIP Freedom 2010 - Service Class 2 Sub-Account Fidelity VIP Freedom 2020 - Service Class 2 Sub-Account Fidelity VIP Freedom 2030 - Service Class 2 Sub-Account Fidelity VIP Contrafund(R) - Service Class 2 Sub-Account Fidelity VIP Index 500 - Service Class 2 Sub-Account Fidelity VIP Mid Cap - Service Class 2 Sub-Account FTVIP Franklin Growth and Income Securities - Class 2 Sub-Account FTVIP Franklin Income Securities - Class 2 Sub-Account FTVIP Franklin Large Cap Growth Securities - Class 2 Sub-Account FTVIP Mutual Global Discovery Securities - Class 2 Sub-Account/(6)/ FTVIP Franklin Small Cap Value Securities - Class 2 Sub-Account FTVIP Franklin U.S. Government - Class 2 Sub-Account FTVIP Mutual Shares Securities - Class 2 Sub-Account FTVIP Templeton Developing Markets Securities - Class 2 Sub-Account FTVIP Templeton Foreign Securities - Class 2 Sub-Account Lord Abbett Series - Fundamental Equity Sub-Account/(6)/ Lord Abbett Series - Bond-Debenture Sub-Account Lord Abbett Series - Growth and Income Sub-Account Lord Abbett Series - Growth Opportunities Sub-Account Lord Abbett Series - Mid-Cap Value Sub-Account Oppenheimer Small- & Mid-Cap Growth/VA - Service Shares Sub-Account/(5)/ Oppenheimer Balanced/VA - Service Shares Sub-Account Oppenheimer Core Bond/VA - Service Shares Sub-Account Oppenheimer Capital Appreciation/VA - Service Shares Sub-Account Oppenheimer High Income/VA - Service Shares Sub-Account Oppenheimer Main Street(R)/VA - Service Shares Sub-Account Oppenheimer Main Street Small Cap(R)/VA - Service Shares Sub-Account Oppenheimer Global Strategic Income/VA - Service Shares Sub-Account/(5)/ Putnam VT Equity Income - Class IB Sub-Account 43 PROSPECTUS Putnam VT Global Asset Allocation - Class IB Sub-Account Putnam VT Growth and Income - Class IB Sub-Account Putnam VT High Yield - Class IB Sub-Account Putnam VT Income - Class IB Sub-Account Putnam VT International Equity - Class IB Sub-Account Putnam VT Investors - Class IB Sub-Account Putnam VT Money Market - Class IB Sub-Account Putnam VT The George Putnam Fund of Boston - Class IB Sub-Account Putnam VT Voyager - Class IB Sub-Account UIF Emerging Markets Debt, Class II Sub-Account/(2)/ UIF Equity and Income, Class II Sub-Account/(2)(7)/ UIF Global Franchise, Class II Sub-Account/(2)/ UIF Mid Cap Growth, Class II Sub-Account/(2)/ UIF U.S. Mid Cap Value, Class I Sub-Account & UIF U.S. Mid Cap Value, Class II Sub-Account/(2)(3)(7)/ UIF U.S. Real Estate, Class II Sub-Account/(2)/ Van Kampen LIT Capital Growth, Class II Sub-Account/(7)/ Van Kampen LIT Comstock, Class II Sub-Account/(7)/ Van Kampen LIT Growth and Income, Class II Sub-Account/(7)/ - -------------------------------------------------------------------------------- Excluded - -------------------------------------------------------------------------------- Fidelity VIP Growth Stock - Service Class 2 Sub-Account Oppenheimer Global Securities/VA - Service Shares Sub-Account Putnam VT Vista - Class IB Sub-Account UIF Capital Growth, Class I Sub-Account & UIF Capital Growth, Class II Sub-Account/(2)(3)/ UIF Small Company Growth, Class II Sub-Account/(2)/ Van Kampen LIT Mid Cap Growth, Class II Sub-Account/(4)(7)/ - -------------------------------------------------------------------------------- (1)The FTVIP Franklin Small-Mid Cap Growth Securities - Class 2 Sub-Account and the FTVIP Templeton Global Bond Securities -Class 2 Sub-Account, which were closed to new investments effective May 1, 2003, are not available with the SureIncome Option. You must transfer any portion of your Contract Value that is allocated to these Variable Sub-Accounts to any of the remaining Variable Sub-Accounts offered with the SureIncome Option prior to adding the SureIncome Option to your Contract.* (2)Morgan Stanley Investment Management Inc., the adviser to the UIF Portfolios, does business in certain instances using the name Van Kampen. (3)The UIF Capital Growth, Class II Sub-Account and the UIF U.S. Mid Cap Value, Class II Sub-Account are offered with Contracts issued on or after May 1, 2004. Contract Owners of Contracts issued prior to May 1, 2004 may invest only in the UIF Capital Growth, Class I Sub-Account and the UIF U.S. Mid Cap Value, Class I Sub-Account. Contracts issued prior to May 1, 2004 that participate in certain TrueBalance model portfolios may invest in UIF Capital Growth, Class II Sub-Account and the UIF U.S. MidCap Value, Class II Sub-Account. (4)Effective May 1, 2006, the Van Kampen LIT Mid Cap Growth Portfolio, Class II (formerly called the Van Kampen LIT Aggressive Growth Portfolio, Class II) was closed to new investments. If you are currently invested in the Variable Sub-Account that invests in this Portfolio, you may continue your investment. If, prior to May 1, 2006, you enrolled in one of our automatic transaction programs such as automatic additions, portfolio rebalancing, or dollar cost averaging, we will continue to effect automatic transactions into the Variable Sub-Account in accordance with that program. Outside of these automatic transaction programs, additional allocations will not be allowed.* (5)Effective May 1, 2010, the following Portfolios changed their names: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Oppenheimer MidCap Fund/VA Oppenheimer Small- & Mid-Cap Growth Fund/VA ----------------------------------------------------------------------------- Oppenheimer Strategic Bond Fund/VA Oppenheimer Global Strategic Income Fund/VA ----------------------------------------------------------------------------- (6)Effective May 1, 2010, the following Portfolio changed its name: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - All Lord Abbett Series Fund Inc. - Value Portfolio Fundamental Equity Portfolio ----------------------------------------------------------------------------- (7)Subject to shareholder approval, certain portfolios of The Universal Institutional Funds, Inc., and the Van Kampen Life Investment Trust will be reorganized into corresponding funds of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds). It is anticipated that the reorganization will occur in the second quarter of 2010. Each such portfolio and its corresponding acquiring fund is shown below: REORGANIZING PORTFOLIOS ACQUIRING FUNDS ----------------------------------------------------------------------------- THE UNIVERSAL INSTITUTIONAL FUNDS, AIM VARIABLE INSURANCE FUNDS INC: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- UIF Equity and Income Portfolio, Invesco Van Kampen V.I. Equity and Class II Income Fund - Series II ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class I Fund - Series I ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class II Fund - Series II ----------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS VAN KAMPEN LIFE INVESTMENT TRUST: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- Van Kampen LIT Capital Growth Invesco Van Kampen V.I. Capital Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Comstock Portfolio - Invesco Van Kampen V.I. Comstock Fund Class II - Series II ----------------------------------------------------------------------------- Van Kampen LIT Growth and Income Invesco Van Kampen V.I. Growth and Portfolio - Class II Income Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Mid Cap Growth Invesco Van Kampen V.I. Mid Cap Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- * AS NOTED ABOVE, CERTAIN VARIABLE SUB-ACCOUNTS ARE CLOSED TO NEW INVESTMENTS. IF YOU INVESTED IN THESE VARIABLE SUB-ACCOUNTS PRIOR TO THE EFFECTIVE CLOSE DATE, YOU MAY CONTINUE YOUR INVESTMENTS. IF PRIOR TO THE EFFECTIVE CLOSE DATE, YOU ENROLLED IN ONE OF OUR AUTOMATIC TRANSACTION PROGRAMS, SUCH AS AUTOMATIC ADDITIONS, PORTFOLIO REBALANCING OR DOLLAR COST AVERAGING, WE WILL CONTINUE TO EFFECT AUTOMATIC TRANSACTIONS TO THESE VARIABLE SUB-ACCOUNTS IN ACCORDANCE WITH THAT PROGRAM. OUTSIDE OF THESE AUTOMATIC TRANSACTION PROGRAMS, ADDITIONAL ALLOCATIONS WILL NOT BE ALLOWED. IF YOU CHOOSE TO ADD ANY WITHDRAWAL BENEFIT OPTION ON OR AFTER THE EFFECTIVE CLOSE DATE, YOU MUST TRANSFER ANY PORTION OF YOUR CONTRACT VALUE THAT IS ALLOCATED TO THESE VARIABLE SUB-ACCOUNTS TO ANY OF THE REMAINING VARIABLE SUB-ACCOUNTS AVAILABLE WITH A WITHDRAWAL BENEFIT OPTION PRIOR TO ADDING IT TO YOUR CONTRACT. TRUEBALANCE/SM/ MODEL PORTFOLIO OPTIONS. If you choose one of the TrueBalance/SM/ Model Portfolio Options or transfer your entire Contract Value into one of the TrueBalance/SM/ Model Portfolio Options, you may not choose the Variable Sub-Accounts or make transfers among the Variable Sub-Accounts that comprise that TrueBalance Model Portfolio Option. Each TrueBalance Model Portfolio involves an allocation of assets among a group of pre-selected Variable Sub-Accounts. You cannot make transfers among the Variable Sub-Accounts nor vary the Variable Sub-Accounts that comprise a TrueBalance Model Portfolio Option. If you choose a TrueBalance Model Portfolio Option, we will invest and periodically reallocate your Contract Value according to 44 PROSPECTUS the allocation percentages and requirements for the TrueBalance Model Portfolio Option you have selected currently. For more information regarding the TrueBalance program, see the "TrueBalance/SM/ Asset Allocation Program" section of this prospectus. However, note that the restrictions described in this section, specifically the restrictions on transfers and the requirement that all of your Contract Value be allocated to a TrueBalance Model Portfolio Option, apply to the TrueBalance program only if you have added a Withdrawal Benefit Option to your Contract. You may allocate your purchase payments to up to 55 Variable Sub-Accounts. Each Variable Sub-Account invests in the shares of a corresponding Portfolio. Each Portfolio has its own investment objective(s) and policies. We briefly describe the Portfolios below. For more complete information about each Portfolio, including expenses and risks associated with each Portfolio, please refer to the prospectuses for the Funds. We will mail to you a prospectus for each Portfolio related to the Variable Sub-Accounts to which you allocate your purchase payment. INVESTMENT ALTERNATIVES: THE VARIABLE SUB-ACCOUNTS - -------------------------------------------------------------------------------- YOU SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE INVESTMENT ALTERNATIVES WHEN MAKING AN ALLOCATION TO THE VARIABLE SUB-ACCOUNTS. TO OBTAIN ANY OR ALL OF THE UNDERLYING PORTFOLIO PROSPECTUSES, PLEASE CONTACT US AT 1-800-457-7617 OR GO TO WWW.ACCESSALLSTATE.COM. * Certain Variable Sub-Accounts may not be available depending on the date you purchased your Contract. Please see page 47 for information about Sub-Account and/or Portfolio liquidations, mergers and name changes. 45 PROSPECTUS
PORTFOLIO: EACH PORTFOLIO SEEKS: INVESTMENT ADVISER: - ------------------------------------------------------------------------------------------------------------------------- Fidelity VIP Contrafund(R) Portfolio - Long-term capital appreciation Service Class 2 - ------------------------------------------------------------------------------------------------- Fidelity VIP Freedom 2010 Portfolio - High total return with a secondary objective of Service Class 2 principal preservation as the fund approaches its target date and beyond - ------------------------------------------------------------------------------------------------- Fidelity VIP Freedom 2020 Portfolio - High total return with a secondary objective of FIDELITY MANAGEMENT & Service Class 2 principal preservation as the fund approaches its RESEARCH COMPANY target date and beyond - ------------------------------------------------------------------------------------------------- Fidelity VIP Freedom 2030 Portfolio - High total return with a secondary objective of Service Class 2 principal preservation as the fund approaches its target date and beyond - ------------------------------------------------------------------------------------------------- Fidelity VIP Freedom Income Portfolio - High total return with a secondary objective of Service Class 2 principal preservation - ------------------------------------------------------------------------------------------------- Fidelity VIP Growth Stock Portfolio - To achieve capital appreciation Service Class 2 - ------------------------------------------------------------------------------------------------- Fidelity VIP Index 500 Portfolio - Investment results that correspond to the total return Service Class 2 of common stocks publicly traded in the United States as represented by the Standard & Poor's 500/(SM)/ Index (S&P 500(R)) - ------------------------------------------------------------------------------------------------- Fidelity VIP Mid Cap Portfolio - Long-term growth of capital Service Class 2 - ------------------------------------------------------------------------------------------------- FTVIP Franklin Growth and Income Capital appreciation with current income as a Securities Fund - Class 2 secondary goal. - ------------------------------------------------------------------------------------------------- FTVIP Franklin Income Securities Fund - To maximize income while maintaining prospects for Class 2 capital appreciation. - -------------------------------------------------------------------------------------------------FRANKLIN ADVISERS, INC. FTVIP Franklin Large Cap Growth Capital appreciation Securities Fund - Class 2 - ------------------------------------------------------------------------------------------------- FTVIP Franklin Small-Mid Cap Growth Long-term capital growth. Securities Fund - Class 2/(1)/ - ------------------------------------------------------------------------------------------------- FTVIP Franklin U.S. Government Fund - Income Class 2 - ------------------------------------------------------------------------------------------------- FTVIP Templeton Global Bond Securities High current income, consistent with preservation of Fund - Class 2/(1)/ capital, with capital appreciation as a secondary consideration. - ------------------------------------------------------------------------------------------------- 46 PROSPECTUS
PORTFOLIO: EACH PORTFOLIO SEEKS: INVESTMENT ADVISER: - ------------------------------------------------------------------------------------------------------------------------------ FTVIP Franklin Small Cap Value Long-term total return. FRANKLIN ADVISORY SERVICES, Securities Fund - Class 2 LLC - ------------------------------------------------------------------------------------------------------------------------------ FTVIP Mutual Global Discovery Capital appreciation Securities Fund - Class 2 FRANKLIN MUTUAL ADVISERS, - --------------------------------------------------------------------------------------------------LLC FTVIP Mutual Shares Securities Fund - Capital appreciation with income as a secondary goal Class 2 - -------------------------------------------------------------------------------------------------- FTVIP Templeton Developing Markets Long-term capital appreciation. TEMPLETON ASSET Securities Fund - Class 2 MANAGEMENT LTD. - ------------------------------------------------------------------------------------------------------------------------------ FTVIP Templeton Foreign Securities Fund Long-term capital growth. TEMPLETON INVESTMENT - Class 2 COUNSEL, LLC - ------------------------------------------------------------------------------------------------------------------------------ Lord Abbett Series Fund Inc. - Long-term growth of capital and income without Fundamental Equity Portfolio/(8)/ excessive fluctuations in market value - -------------------------------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - High current income and the opportunity for capital Bond-Debenture Portfolio appreciation to produce a high total return LORD, ABBETT & CO. LLC - -------------------------------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - Growth Long-term growth of capital and income without and Income Portfolio excessive fluctuations in market value - -------------------------------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - Growth Capital appreciation Opportunities Portfolio - -------------------------------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - Mid-Cap Capital appreciation through investments, primarily Value Portfolio in equity securities, which are believed to be undervalued in the marketplace - -------------------------------------------------------------------------------------------------- Oppenheimer Small- & Mid-Cap Growth Capital appreciation by investing in "growth type" Fund/VA - Service Shares/(6)/ companies. - -------------------------------------------------------------------------------------------------- Oppenheimer Balanced Fund/VA - Service A high total investment return, which includes Shares current income and capital appreciation in the value of its shares. - -------------------------------------------------------------------------------------------------- Oppenheimer Core Bond Fund/VA - Service High level of current income. As a secondary Shares objective, the Portfolio seeks capital appreciation OPPENHEIMERFUNDS, INC. when consistent with its primary objective. - -------------------------------------------------------------------------------------------------- Oppenheimer Capital Appreciation Capital appreciation by investing in securities of well- Fund/VA - Service Shares known, established companies. - -------------------------------------------------------------------------------------------------- Oppenheimer Global Securities Fund/VA - Long-term capital appreciation by investing a Service Shares substantial portion of assets in securities of foreign issuers, growth-type companies, cyclical industries and special situations that are considered to have appreciation possibilities. - -------------------------------------------------------------------------------------------------- Oppenheimer High Income Fund/VA - A high level of current income from investment in Service Shares high-yield, lower-grade, fixed-income securities that the Fund's manager, OppenheimerFunds, Inc., believes does not involve undue risk. - -------------------------------------------------------------------------------------------------- Oppenheimer Main Street Fund(R)/VA - High total return (which includes growth in the value Service Shares of its shares as well as current income) from equity and debt securities. - -------------------------------------------------------------------------------------------------- Oppenheimer Main Street Small Cap Capital appreciation. Fund(R)/VA - Service Shares - -------------------------------------------------------------------------------------------------- Oppenheimer Global Strategic Income A high level of current income principally derived Fund/VA - Service Shares/(6)/ from interest on debt securities. - -------------------------------------------------------------------------------------------------- 47 PROSPECTUS
PORTFOLIO: EACH PORTFOLIO SEEKS: INVESTMENT ADVISER: - --------------------------------------------------------------------------------------------------------------------------- Putnam VT Equity Income Fund - Class IB Capital growth and current income. - ------------------------------------------------------------------------------------------------- Putnam VT The George Putnam Fund of To provide a balanced investment composed of a well Boston - Class IB diversified portfolio of value stocks and bonds, which produce both capital growth and current income. - ------------------------------------------------------------------------------------------------- Putnam VT Global Asset Allocation Fund A high level of long-term total return consistent with - Class IB preservation of capital. - ------------------------------------------------------------------------------------------------- Putnam VT Growth and Income Fund - Capital growth and current income. Class IB - ------------------------------------------------------------------------------------------------- Putnam VT Global Health Care Fund - Capital appreciation. Class IB/(2)/ PUTNAM INVESTMENT - -------------------------------------------------------------------------------------------------MANAGEMENT, LLC Putnam VT High Yield Fund - Class IB High current income. Capital growth is a secondary ("PUTNAM MANAGEMENT") goal when consistent with achieving high current income. - ------------------------------------------------------------------------------------------------- Putnam VT Income Fund - Class IB High current income consistent with what Putnam Management believes to be prudent risk. - ------------------------------------------------------------------------------------------------- Putnam VT International Equity Fund - Capital appreciation. Class IB - ------------------------------------------------------------------------------------------------- Putnam VT Investors Fund - Class IB Long-term growth of capital and any increased income that results from this growth. - ------------------------------------------------------------------------------------------------- Putnam VT Money Market Fund - Class IB As high a rate of current income as Putnam Management believes is consistent with preservation of capital and maintenance of liquidity. - ------------------------------------------------------------------------------------------------- Putnam VT New Opportunities Fund - Long-term capital appreciation. Class IB/(2)/ - ------------------------------------------------------------------------------------------------- Putnam VT Research Fund - Class IB/(2)/ Capital appreciation. - ------------------------------------------------------------------------------------------------- Putnam VT Global Utilities Fund - Class Capital growth and current income. IB/(2)/ - ------------------------------------------------------------------------------------------------- Putnam VT Vista Fund - Class IB Capital appreciation. - ------------------------------------------------------------------------------------------------- Putnam VT Voyager Fund - Class IB Capital appreciation. - ------------------------------------------------------------------------------------------------- UIF Capital Growth Portfolio, Class I & Long-term capital appreciation by investing primarily UIF Capital Growth Portfolio, Class in growth-oriented equity securities of large II/(5)/ capitalization companies. - ------------------------------------------------------------------------------------------------- UIF Emerging Markets Debt Portfolio, High total return by investing primarily in fixed Class II income securities of government and government- related issuers and, to a lesser extent, of corporate issuers in emerging market countries. MORGAN STANLEY INVESTMENT - -------------------------------------------------------------------------------------------------MANAGEMENT, INC./(4)/ UIF Equity and Income Portfolio, Class Capital appreciation and current income. II/(7)/ - ------------------------------------------------------------------------------------------------- UIF Global Franchise Portfolio, Class II Long-term capital appreciation. - ------------------------------------------------------------------------------------------------- UIF Mid Cap Growth Portfolio, Class II Long-term capital growth by investing primarily in common stocks and other equity securities. - ------------------------------------------------------------------------------------------------- UIF Small Company Growth Portfolio, Long-term capital appreciation by investing primarily Class II in growth-oriented equity securities of small companies. - ------------------------------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio, Class Above-average total return over a market cycle of I & UIF U.S. Mid Cap Value Portfolio, three to five years by investing in common stocks Class II/(5)(7)/ and other equity securities. - ------------------------------------------------------------------------------------------------- UIF U.S. Real Estate Portfolio, Class II Above average current income and long-term capital appreciation by investing primarily in equity securities of companies in the U.S. real estate industry, including real estate investment trusts. - ------------------------------------------------------------------------------------------------- (1) Effective May 1, 2003, the FTVIP Franklin Small-Mid Cap Growth Securities - Class 2 Sub-Account and the FTVIP Templeton Global Bond Securities - Class 2 Sub-Accounts are no longer available for new investments. If you are currently invested in these Variable Sub-Accounts you may continue those investments. If, prior to May 1, 2003, you enrolled in one of our automatic transaction programs, such as automatic additions, portfolio rebalancing, or dollar cost averaging, we will continue to effect automatic transactions into these Variable Sub-accounts in accordance with that program. Outside of these automatic transaction programs, additional allocations will not be allowed. (2) Effective October 1, 2004, the Putnam VT Global Health Care - Class IB Sub-Account, Putnam VT New Opportunities - Class IB Sub-Account, Putnam VT Research - Class IB Sub-Account and the Putnam VT Global Utilities - Class IB Sub-Account Portfolios are no longer available for new investments. If you are currently invested in these Variable Sub-Accounts, you may continue your investment. If, prior to October 1, 2004, you enrolled in one of our automatic transaction programs, such as automatic additions, portfolio rebalancing, or dollar cost averaging, we will continue to effect automatic transactions into these Variable Sub-Accounts in accordance with that program. Outside of these automatic transaction programs, additional allocations will not be allowed. (3) Effective May 1, 2006, the Van Kampen LIT Mid Cap Growth Portfolio, Class II (formerly called the Van Kampen LIT Aggressive Growth Portfolio, Class II) is no longer available for new investments. If you are currently invested in the Variable Sub-Account that invests in this Portfolio you may continue your investment. If, prior to May 1, 2006, you enrolled in one of our automatic transaction programs, such as automatic additions, portfolio rebalancing, or dollar cost averaging, we will continue to effect automatic transactions into the Variable Sub-Account in accordance with that program. Outside of these automatic transaction programs, additional allocations will not be allowed. (4) Morgan Stanley Investment Management Inc., the adviser to the UIF Portfolios, does business in certain instances as Van Kampen. (5) The Variable Sub-Accounts that invest in the UIF Capital Growth Portfolio, Class II and the UIF U.S. Mid Cap Value Portfolio, Class II are offered with Contracts issued on or after May 1, 2004. Contracts issued prior to May 1, 2004, may only invest in the Variable Sub-Accounts that invest in the UIF Capital Growth Portfolio, Class I and the UIF U.S. Mid Cap Value Portfolio, Class I. Contracts issued prior to May 1, 2004 that participate in certain TrueBalance model portfolios may invest in UIF Capital Growth, Class II Sub-Account and the UIF U.S. MidCap Value, Class II Sub-Account. (6) Effective May 1, 2010, the following Portfolios changed their names: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Oppenheimer MidCap Fund/VA Oppenheimer Small- & Mid-Cap Growth Fund/VA ----------------------------------------------------------------------------- Oppenheimer Strategic Bond Fund/VA Oppenheimer Global Strategic Income Fund/VA ----------------------------------------------------------------------------- (7) Subject to shareholder approval, certain portfolios of The Universal Institutional Funds, Inc., and the Van Kampen Life Investment Trust will be reorganized into corresponding funds of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds). It is anticipated that the reorganization will occur in the second quarter of 2010. Each such portfolio and its corresponding acquiring fund is shown below: REORGANIZING PORTFOLIOS ACQUIRING FUNDS ----------------------------------------------------------------------------- THE UNIVERSAL INSTITUTIONAL AIM VARIABLE INSURANCE FUNDS FUNDS, INC: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- UIF Equity and Income Portfolio, Invesco Van Kampen V.I. Equity and Class II Income Fund - Series II ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class I Fund - Series I ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class II Fund - Series II ----------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS VAN KAMPEN LIFE INVESTMENT TRUST: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- Van Kampen LIT Capital Growth Invesco Van Kampen V.I. Capital Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Comstock Portfolio - Invesco Van Kampen V.I. Comstock Fund Class II - Series II ----------------------------------------------------------------------------- Van Kampen LIT Growth and Income Invesco Van Kampen V.I. Growth and Portfolio - Class II Income Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Mid Cap Growth Invesco Van Kampen V.I. Mid Cap Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- (8) Effective May 1, 2010, the following Portfolio changed its name: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - All Lord Abbett Series Fund Inc. - Value Portfolio Fundamental Equity Portfolio ----------------------------------------------------------------------------- AMOUNTS YOU ALLOCATE TO VARIABLE SUB-ACCOUNTS MAY GROW IN VALUE, DECLINE IN VALUE, OR GROW LESS THAN YOU EXPECT, DEPENDING ON THE INVESTMENT PERFORMANCE OF THE PORTFOLIOS IN WHICH THOSE VARIABLE SUB-ACCOUNTS INVEST. YOU BEAR THE INVESTMENT RISK THAT THE PORTFOLIOS MIGHT NOT MEET THEIR INVESTMENT OBJECTIVES. SHARES OF THE PORTFOLIOS ARE NOT DEPOSITS IN, OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, ANY BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. VARIABLE INSURANCE PORTFOLIOS MIGHT NOT BE MANAGED BY THE SAME PORTFOLIO MANAGERS WHO MANAGE RETAIL MUTUAL FUNDS WITH SIMILAR NAMES. THESE PORTFOLIOS ARE LIKELY TO DIFFER FROM SIMILARLY NAMED RETAIL MUTUAL FUNDS IN ASSETS, CASH FLOW, AND TAX MATTERS. ACCORDINGLY, THE HOLDINGS AND INVESTMENT RESULTS OF A 48 PROSPECTUS
PORTFOLIO: EACH PORTFOLIO SEEKS: INVESTMENT ADVISER: - ---------------------------------------------------------------------------------------------------------------- Van Kampen LIT Capital Growth Capital appreciation. VAN KAMPEN ASSET Portfolio, Class II/(7)/ MANAGEMENT - -------------------------------------------------------------------------------------------- Van Kampen LIT Comstock Portfolio, Capital growth and income through investments in Class II/(7)/ equity securities, including common stocks, preferred stocks and securities convertible into common and preferred stocks. - -------------------------------------------------------------------------------------------- Van Kampen LIT Growth and Income Long-term growth of capital and income. Portfolio, Class II/(7)/ - -------------------------------------------------------------------------------------------- Van Kampen LIT Mid Cap Growth Capital growth Portfolio, Class II/(3)(7)/ - -------------------------------------------------------------------------------------------- VARIABLE INSURANCE PORTFOLIO CAN BE EXPECTED TO BE HIGHER OR LOWER THAN THE INVESTMENT RESULTS OF A SIMILARLY NAMED RETAIL MUTUAL FUND. TRUEBALANCE/SM/ ASSET ALLOCATION PROGRAM THE TRUEBALANCE ASSET ALLOCATION PROGRAM ("TRUEBALANCE PROGRAM") IS NO LONGER OFFERED FOR NEW ENROLLMENTS. IF YOU ENROLLED IN THE TRUEBALANCE PROGRAM PRIOR TO JANUARY 31, 2008, YOU MAY REMAIN IN THE PROGRAM. IF YOU TERMINATE YOUR ENROLLMENT OR OTHERWISE TRANSFER YOUR CONTRACT VALUE OUT OF THE PROGRAM, YOU MAY NOT RE-ENROLL. There is no additional charge for the TrueBalance program. Participation in the TrueBalance program may be limited if you have elected certain Contract Options that impose restrictions on the investment alternatives which you may invest, such as the Income Protection Benefit Option, the TrueReturn Accumulation Benefit Option or a Withdrawal Benefit Option. See the sections of this prospectus discussing these Options for more information. Asset allocation is the process by which your Contract Value is invested in different asset classes in a way that matches your risk tolerance, time horizon, and investment goals. Theoretically, different asset classes tend to behave differently under various economic and market conditions. By spreading your Contract Value across a range of asset classes, you may, over time, be able to reduce the risk of investment volatility and potentially enhance returns. Asset allocation does not guarantee a profit or protect against loss in a declining market. Your sales representative helps you determine whether participating in an asset allocation program is appropriate for you. You complete a questionnaire to identify your investment style. Based on your investment style, you select one asset allocation model portfolio among the available model portfolios which may range from conservative to aggressive. Your Contract Value is allocated among the Variable Sub-Accounts according to your selected model portfolio. Not all Variable Sub-Accounts are available in any one model portfolio, and you must only allocate your Contract Value to the limited number of Variable Sub-Accounts available in the model portfolio you select. You should not select a model portfolio without first consulting with your sales representative. Allstate Life and the principal underwriter of the Contracts, Allstate Distributors, L.L.C. ("Allstate Distributors"), do not intend to provide any personalized investment advice in connection with the TrueBalance program and you should not rely on this program as providing individualized investment recommendations to you. Allstate Life retained an independent investment management firm ("investment management firm") to construct the TrueBalance model portfolios. The investment management firm does not provide advice to Allstate Life's Contract Owners. Neither Allstate Life nor the investment management firm is acting for any Contract Owner as a "fiduciary" or as an "investment manager," as such terms are defined under applicable laws and regulations relating to the Employee Retirement Income Security Act of 1974 (ERISA). The investment management firm does not take into account any information about any Contract Owner or any Contract Owner's assets when creating, providing or maintaining any TrueBalance model portfolio. Individual Contract Owners should ultimately rely on their own judgment and/or the judgment of a financial advisor in making their investment decisions. Neither Allstate Life nor the investment management firm is responsible for determining the suitability of the TrueBalance model portfolios for the Contract Owners' purposes. Each of the five model portfolios specifies an allocation among a mix of Variable Sub-Accounts that is designed to meet the investment goals of the applicable investment style. On the business day we approve your participation in the TrueBalance program, we automatically reallocate any existing Contract Value in the Variable Sub-Accounts according to the model portfolio you selected. If any portion of your existing Contract Value is allocated to the Standard Fixed Account or MVA Fixed Account Options and you wish to allocate any portion of it to the model portfolio, you must transfer that portion to the Variable Sub-Accounts. In addition, as long as you participate in the TrueBalance program, you must allocate all of your purchase payments (and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS) to the Fixed Account Options and/or the Variable Sub-Accounts currently offered in your model portfolio. Any purchase payments (and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS) you allocate to the DCA Fixed Account Option will be automatically transferred, along with interest, in equal monthly installments to the Variable Sub-Accounts according to the model portfolio you selected. We use the term "Transfer Period Account" to refer to each purchase payment allocation made to the DCA Fixed Account Option for a specified term length. For TrueBalance model portfolios selected on or after May 1, 2005, at the expiration of a Transfer Period Account any remaining amounts in the Transfer Period Account will be transferred to the Variable Sub-Account according to the percentage allocation for the model portfolio you selected. Allstate Life may offer new or revised TrueBalance model portfolios at any time, and may retain a different investment management firm to create any such new or revised TrueBalance model portfolios. Allstate Life will not automatically reallocate your Contract Value allocated to the Variable Sub-Accounts to match any new or revised model portfolios that are offered. If you are invested in the TrueBalance model portfolio, your Morgan Stanley Financial Advisor will notify you of any 49 PROSPECTUS new or revised TrueBalance model portfolios that may be available. If you wish to invest in accordance with a new or revised TrueBalance model portfolio, you must submit a transfer request to transfer your Contract Value in your existing TrueBalance model portfolio in accordance with the new TrueBalance model portfolio. If you do not request a transfer to a new TrueBalance model portfolio, we will continue to rebalance your Contract Value in accordance with your existing TrueBalance model portfolio. At any given time, you may only elect a TrueBalance model portfolio that is available at the time of election. You may select only one model portfolio at a time. However, you may change your selection of model portfolio at any time, provided you select a currently available model portfolio. Each change you make in your model portfolio selection will count against the 12 transfers you can make each Contract Year without paying a transfer fee. You should consult with your sales representative before making a change to your model portfolio selection to determine whether the new model portfolio is appropriate for your needs. Since the performance of each Variable Sub-Account may cause a shift in the percentage allocated to each Variable Sub-Account, at least once every calendar quarter we will automatically rebalance all of your Contract Value in the Variable Sub-Accounts according to your currently selected model portfolio. Unless you notify us otherwise, any purchase payments you make after electing the TrueBalance program will be allocated to your model portfolio and/or to the Fixed Account Options according to your most recent instructions on file with us. Once you elect to participate in the TrueBalance program, you may allocate subsequent purchase payments to any of the Fixed Account Options available with your Contract and/or to any of the Variable Sub-Accounts included in your model portfolio, but only according to the allocation specifications of that model portfolio. You may not allocate subsequent purchase payments to a Variable Sub-Account that is not included in your model portfolio. Subsequent purchase payments allocated to the Variable Sub-Accounts will be automatically rebalanced at the end of the next calendar quarter according to the allocation percentages for your currently selected model portfolio. THE FOLLOWING APPLIES TO TRUEBALANCE MODEL PORTFOLIOS SELECTED PRIOR TO MAY 1, 2005. TRUEBALANCE MODEL PORTFOLIOS SELECTED PRIOR TO MAY 1, 2005, ARE NOT AVAILABLE WITH THE TRUERETURN OPTION OR A WITHDRAWAL BENEFIT OPTION: For TrueBalance model portfolios selected prior to May 1, 2005, you may make transfers to any of the available investment alternatives, except the DCA Fixed Account Option. However, all of your Contract Value in the Variable Sub-Accounts will be automatically rebalanced at the end of the next calendar quarter according to the percentage allocations for your currently selected model portfolio. Transfers to investment alternatives that are not included in the model portfolio you selected may be inconsistent with the investment style you selected and with the purpose of the TrueBalance program. You should consult with your sales representative before making transfers outside the model portfolio allocations. THE FOLLOWING APPLIES TO TRUEBALANCE MODEL PORTFOLIOS SELECTED ON OR AFTER MAY 1, 2005, WITH THE TRUERETURN OPTION OR A WITHDRAWAL BENEFIT OPTION: For TrueBalance model portfolios selected on or after May 1, 2005, with the TrueReturn Option or SureIncome Option, you must allocate all of your Contract Value to a TrueBalance Model Portfolio Option, and you may not choose the Variable Sub-Accounts or make transfers among the Variable Sub-Accounts in the TrueBalance Model Portfolio Option. If you choose a TrueBalance Model Portfolio Option, we will invest and periodically reallocate your Contract Value according to the allocation percentages and requirements for the TrueBalance Model Portfolio Option you selected. You may, however, elect to reallocate your entire Contract Value from one Model Portfolio Option to another Model Portfolio Option available with your Option. If you own the TrueReturn Accumulation Benefit Option, on the Rider Maturity Date the Contract Value may be increased due to the Option. Any increase will be allocated to the Putnam VT Money Market. You may make transfers from this Variable Sub-Account to the Fixed Account Options (as allowed) or the Variable Sub-Accounts included in your model portfolio, but only according to the allocation specification of that model portfolio. All of your Contract Value in the Variable Sub-Accounts will be automatically rebalanced at the next calendar quarter according to the allocation percentages for your currently selected model portfolio. THE FOLLOWING APPLIES TO TRUEBALANCE MODEL PORTFOLIOS SELECTED ON OR AFTER MAY 1, 2005, WITHOUT THE TRUERETURN OPTION OR A WITHDRAWAL BENEFIT OPTION: For TrueBalance model portfolios selected on or after May 1, 2005, without the TrueReturn or SureIncome Option, you may not make transfers from the Variable Sub-Accounts to any of the other Variable Sub-Accounts. You may make transfers, as allowed under the contract, from the Fixed Account Options to other Fixed Account Options or to the Variable Sub-Accounts included in your model portfolio, but only according to the allocation specifications of that model portfolio. You may make transfers from the Variable Sub-Accounts to any of the Fixed Account Options, except the DCA Fixed Account Option. Transfers to Fixed Account Options may be inconsistent with the investment style you selected and with the purpose of the TrueBalance 50 PROSPECTUS program. However, all of your Contract Value in the Variable Sub-Accounts will be automatically rebalanced at the next calendar quarter according to the percentage allocations for your currently selected model portfolio. You should consult with your sales representative before making transfers. If you make a partial withdrawal from any of the Variable Sub-Accounts, your remaining Contract Value in the Variable Sub-Accounts will be automatically rebalanced at the end of the next calendar quarter according to the percentage allocations for your currently selected model portfolio allocations. If you are participating in the Systematic Withdrawal Program when you add the TrueBalance program or change your selection of model portfolios, you may need to update your withdrawal instructions. If you have any questions, please consult your sales representative. Your participation in the TrueBalance program is subject to the program's terms and conditions, and you may change model portfolios or terminate your participation in the TrueBalance program at any time by notifying us in a form satisfactory to us. We reserve the right to modify or terminate the TrueBalance program at any time. You may allocate all or a portion of your purchase payments (and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS) to the Fixed Account Options. The Fixed Account Options we offer include the Dollar Cost Averaging Fixed Account Option, the Standard Fixed Account Option, and the Market Value Adjusted Fixed Account Option. We may offer additional Fixed Account Options in the future. Some Options are not available in all states. In addition, Allstate Life may limit the availability of some Fixed Account Options. Please consult with your representative for current information. The Fixed Account supports our insurance and annuity obligations. The Fixed Account consists of our general assets other than those in segregated asset accounts. We have sole discretion to invest the assets of the Fixed Account, subject to applicable law. Any money you allocate to the Fixed Account does not entitle you to share in the investment experience of the Fixed Account. DOLLAR COST AVERAGING FIXED ACCOUNT OPTION The Dollar Cost Averaging Fixed Account Option ("DCA Fixed Account Option") is one of the investment alternatives that you can use to establish a Dollar Cost Averaging Program, as described on page 57. This option allows you to allocate purchase payments (and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS) to the Fixed Account that will then automatically be transferred, along with interest, in equal monthly installments to the investment alternatives that you have selected. In the future, we may offer other installment frequencies in our discretion. Each purchase payment allocated to the DCA Fixed Account Option must be at least $100. At the time you allocate a purchase payment to the DCA Fixed Account Option, you must specify the term length over which the transfers are to take place. We use the term "Transfer Period Account" to refer to each purchase payment allocation made to the DCA Fixed Account Option for a specified term length. You establish a new Transfer Period Account each time you allocate a purchase payment to the DCA Fixed Account Option. We currently offer term lengths from which you may select for your Transfer Period Account(s), ranging INVESTMENT ALTERNATIVES: THE FIXED ACCOUNT OPTIONS - -------------------------------------------------------------------------------- from 3 to 12 months. We may modify or eliminate the term lengths we offer in the future. Refer to Appendix A for more information. Your purchase payments (and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS) will earn interest while in the DCA Fixed Account Option at the interest rate in effect at the time of the allocation, depending on the term length chosen for the Transfer Period Account and the type of Contract you have. The interest rates may also differ from those available for other Fixed Account Options. The minimum interest rate associated with the DCA Fixed Account Option is based upon state requirements and the date an application to purchase a Contract is signed. This minimum interest rate will not change after Contract issue. You must transfer all of your money, plus accumulated interest, out of a Transfer Period Account to other investment alternatives in equal monthly installments during the term of the Transfer Period Account. We reserve the right to restrict the investment alternatives available for transfers from any Transfer Period Account. You may not transfer money from the Transfer Period Accounts to any of the Fixed Account Options available under your Contract. The first transfer will occur on the next Valuation Date after you establish a Transfer Period Account. If we do not receive an allocation instruction from you when we receive the purchase payment, we will transfer each installment to the Putnam VT Money Market Variable Sub-Account until we receive a different allocation instruction. At the expiration of a Transfer Period Account any remaining amounts in the Transfer Period Account will be transferred to the Putnam VT Money Market Variable Sub-Account unless you request a different investment alternative. Transferring Contract Value to the Putnam VT Money Market Variable Sub- Account in this manner may not be consistent with the theory of dollar cost averaging described on page 57. If you discontinue the DCA Fixed Account Option before the expiration of a Transfer Period Account, we will transfer any remaining amount in the Transfer Period Account to the Putnam VT Money Market Variable Sub-Account unless you request a different investment alternative. 51 PROSPECTUS If you have a TrueReturn Option or Withdrawal Benefit Option, at the expiration of a Transfer Period Account or if you discontinue the DCA Fixed Account Option any amounts remaining in the Transfer Period Account will be transferred according to the investment requirements applicable to the Option you selected. You may not transfer money into the DCA Fixed Account Option or add to an existing Transfer Period Account. You may not use the Automatic Additions Program to allocate purchase payments to the DCA Fixed Account Option. The DCA Fixed Account Option currently is not available if you have selected the ALLSTATE ADVISOR PREFERRED CONTRACT WITH NO WITHDRAWAL CHARGE OPTION. The DCA Fixed Account Option may not be available in your state. Please check with your representative for availability. STANDARD FIXED ACCOUNT OPTION You may allocate purchase payments or transfer amounts into the Standard Fixed Account Option. Each such allocation establishes a "Guarantee Period Account" within the Standard Fixed Account Option ("Standard Fixed Guarantee Period Account"), which is defined by the date of the allocation and the length of the initial interest rate guarantee period ("Standard Fixed Guarantee Period"). You may not allocate a purchase payment or transfer to any existing Guarantee Period Account. Each purchase payment or transfer allocated to a Standard Fixed Guarantee Period Account must be at least $100. At the time you allocate a purchase payment or transfer amount to the Standard Fixed Account Option, you must select the Guarantee Period for that allocation from among the available Standard Fixed Guarantee Periods. For ALLSTATE ADVISOR CONTRACTS, we currently offer Standard Fixed Guarantee Periods of 1, 3, 5 and 7 years in length. For Allstate Advisor Plus and Allstate Advisor Preferred Contracts, we currently are not offering the Standard Fixed Account Option. Refer to Appendix A for more information. We may offer other Guarantee Periods in the future. If you allocate a purchase payment to the Standard Fixed Account Option, but do not select a Standard Fixed Guarantee Period for the new Standard Fixed Guarantee Period Account, we will allocate the purchase payment or transfer to a new Standard Fixed Guarantee Period Account with the same Standard Fixed Guarantee Period as the Standard Fixed Guarantee Period Account of your most recent purchase payment or transfer. If we no longer offer that Standard Fixed Guarantee Period, then we will allocate the purchase payment or transfer to a new Standard Fixed Guarantee Period Account with the next shortest term currently offered. If you have not made a prior allocation to a Guarantee Period Account, then we will allocate the purchase payment or transfer to a new Standard Fixed Guarantee Period Account of the shortest Standard Fixed Guarantee Period we are offering at that time. Some Standard Fixed Guarantee Periods are not available in all states. Please check with your representative for availability. The amount you allocate to a Standard Fixed Guarantee Period Account will earn interest at the interest rate in effect for that Standard Fixed Guarantee Period at the time of the allocation. Interest rates may differ depending on the type of Contract you have and may also differ from those available for other Fixed Account Options. The minimum interest rate associated with the Standard Fixed Account Option is based upon state requirements and the date an application to purchase a Contract is signed. This minimum interest rate will not change after Contract issue. In any Contract Year, the combined amount of withdrawals and transfers from a Standard Fixed Guarantee Period Account may not exceed 30% of the amount used to establish that Standard Fixed Guarantee Period Account. This limitation is waived if you withdraw your entire Contract Value. It is also waived for amounts in a Standard Fixed Guarantee Period Account during the 30 days following its renewal date ("30-Day Window"), described below, and for a single withdrawal made by your surviving spouse within one year of continuing the Contract after your death. Amounts under the 30% limit that are not withdrawn in a Contract Year do not carry over to subsequent Contract Years. At the end of a Standard Fixed Guarantee Period and each year thereafter, we will declare a renewal interest rate that will be guaranteed for 1 year. Subsequent renewal dates will be on the anniversaries of the first renewal date. Prior to a renewal date, we will send you a notice that will outline the options available to you. During the 30-Day Window following the expiration of a Standard Fixed Guarantee Period Account, the 30% limit for transfers and withdrawals from that Guarantee Period Account is waived and you may elect to: .. transfer all or part of the money from the Standard Fixed Guarantee Period Account to establish a new Guarantee Period Account within the Standard Fixed Account Option or the Market Value Adjusted Fixed Account Option, if available; or .. transfer all or part of the money from the Standard Fixed Guarantee Period Account to other investment alternatives available at the time; or .. withdraw all or part of the money from the Standard Fixed Guarantee Period Account. Withdrawal charges and taxes may apply. Withdrawals taken to satisfy IRS minimum distribution rules will count against the 30% limit. The 30% limit will be waived for a Contract Year to the extent that: .. you have already exceeded the 30% limit and you must still make a withdrawal during that Contract Year to satisfy IRS minimum distribution rules; or .. you have not yet exceeded the 30% limit but you must make a withdrawal during that Contract Year 52 PROSPECTUS to satisfy IRS minimum distribution rules, and such withdrawal will put you over the 30% limit. The money in the Standard Fixed Guarantee Period Account will earn interest at the declared renewal rate from the renewal date until the date we receive notification of your election. If we receive notification of your election to make a transfer or withdrawal from a renewing Standard Fixed Guarantee Period Account on or before the renewal date, the transfer or withdrawal will be deemed to have occurred on the renewal date. If we receive notification of your election to make a transfer or withdrawal from the renewing Standard Fixed Guarantee Period Account after the renewal date, but before the expiration of the 30-Day Window, the transfer or withdrawal will be deemed to have occurred on the day we receive such notice. Any remaining balance not withdrawn or transferred from the renewing Standard Fixed Guarantee Period Account will continue to earn interest until the next renewal date at the declared renewal rate. If we do not receive notification from you within the 30-Day Window, we will assume that you have elected to renew the Standard Fixed Guarantee Period Account and the amount in the renewing Standard Fixed Guarantee Period Account will continue to earn interest at the declared renewal rate until the next renewal date, and will be subject to all restrictions of the Standard Fixed Account Option. The Standard Fixed Account Option currently is not available with ALLSTATE ADVISOR PLUS and ALLSTATE ADVISOR PREFERRED CONTRACTS. MARKET VALUE ADJUSTED FIXED ACCOUNT OPTION You may allocate purchase payments or transfer amounts into the Market Value Adjusted Fixed Account Option. Each such allocation establishes a Guarantee Period Account within the Market Value Adjusted Fixed Account Option ("Market Value Adjusted Fixed Guarantee Period Account"), which is defined by the date of the allocation and the length of the initial interest rate guarantee period ("Market Value Adjusted Fixed Guarantee Period"). You may not allocate a purchase payment or transfer to any existing Guarantee Period Account. Each purchase payment or transfer allocated to a Market Value Adjusted Fixed Guarantee Period Account must be at least $100. At the time you allocate a purchase payment or transfer amount to the Market Value Adjusted Fixed Account Option, you must select the Guarantee Period for that allocation from among the Guarantee Periods available for the Market Value Adjusted Fixed Account Option ("Market Value Adjusted Fixed Guarantee Periods"). We currently offer Market Value Adjusted Fixed Guarantee Periods of 3, 5, 7, and 10 years. Refer to Appendix A for more information. We may offer other Guarantee Periods in the future. If you allocate a purchase payment to the Market Value Adjusted Fixed Account Option, but do not select a Market Value Adjusted Fixed Guarantee Period for the new Market Value Adjusted Fixed Guarantee Period Account, we will allocate the purchase payment or transfer to a new Market Value Adjusted Fixed Guarantee Period Account with the same Market Value Adjusted Fixed Guarantee Period as the Market Value Adjusted Fixed Guarantee Period Account of your most recent purchase payment or transfer. If we no longer offer that Market Value Adjusted Fixed Guarantee Period, then we will allocate the purchase payment or transfer to a new Market Value Adjusted Fixed Guarantee Period Account with the next shortest term currently offered. If you have not made a prior allocation to a Market Value Adjusted Fixed Guarantee Period Account, then we will allocate the purchase payment or transfer to a new Market Value Adjusted Fixed Guarantee Period Account of the shortest Market Value Adjusted Fixed Guarantee Period we are offering at that time. The Market Value Adjusted Fixed Account Option is not available in all states. Please check with your sales representative for availability. The amount you allocate to a Market Value Adjusted Fixed Guarantee Period Account will earn interest at the interest rate in effect for that Market Value Adjusted Fixed Guarantee Period at the time of the allocation. Interest rates may differ depending on the type of Contract you have and may also differ from those available for other Fixed Account Options. Withdrawals and transfers from a Market Value Adjusted Fixed Guarantee Period Account may be subject to a Market Value Adjustment. A Market Value Adjustment may also apply to amounts in the Market Value Adjusted Fixed Account Option if we pay Death Proceeds or if the Payout Start Date begins on a day other than during the 30-day period after such Market Value Adjusted Fixed Guarantee Period Account expires ("30-Day MVA Window"). We will not make a Market Value Adjustment if you make a transfer or withdrawal during the 30-Day MVA Window. We apply a Market Value Adjustment to reflect changes in interest rates from the time you first allocate money to a Market Value Adjusted Fixed Guarantee Period Account to the time the money is taken out of that Market Value Adjusted Fixed Guarantee Period Account under the circumstances described above. We use the U.S. Treasury Note Constant Maturity Yield as reported in Federal Reserve Board Statistical Release H.15 ("Treasury Rate") to calculate the Market Value Adjustment. We do so by comparing the Treasury Rate for a maturity equal to the Market Value Adjusted Fixed Guarantee Period at the time the Market Value Adjusted Fixed Guarantee Period Account is established with the Treasury Rate for the same maturity at the time the money is taken from the Market Value Adjusted Fixed Guarantee Period Account. The Market Value Adjustment may be positive or negative, depending on changes in interest rates. As such, you bear the investment risk associated with changes in interest rates. If interest rates have increased since the establishment of a Market Value Adjusted Fixed 53 PROSPECTUS Guarantee Period Account, the Market Value Adjustment, together with any applicable withdrawal charges, premium taxes, and income tax withholdings could reduce the amount you receive upon full withdrawal from a Market Value Adjusted Fixed Guarantee Period Account to an amount less than the purchase payment used to establish that Market Value Adjusted Fixed Guarantee Period Account. Generally, if at the time you establish a Market Value Adjusted Fixed Guarantee Period Account, the Treasury Rate for a maturity equal to that Market Value Adjusted Fixed Guarantee Period is higher than the applicable Treasury Rate at the time money is to be taken from the Market Value Adjusted Fixed Guarantee Period Account, the Market Value Adjustment will be positive. Conversely, if at the time you establish a Market Value Adjusted Fixed Guarantee Period Account, the applicable Treasury Rate is lower than the applicable Treasury Rate at the time the money is to be taken from the Market Value Adjusted Fixed Guarantee Period Account, the Market Value Adjustment will be negative. For example, assume that you purchase a Contract and allocate part of the initial purchase payment (and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS) to the Market Value Adjusted Fixed Account Option to establish a 5-year Market Value Adjusted Fixed Guarantee Period Account. Assume that the 5-year Treasury Rate at that time is 4.50%. Next, assume that at the end of the 3rd year, you withdraw money from the Market Value Adjusted Fixed Guarantee Period Account. If, at that time, the 5-year Treasury Rate is 4.20%, then the Market Value Adjustment will be positive. Conversely, if the 5-year Treasury Rate at that time is 4.80%, then the Market Value Adjustment will be negative. The formula used to calculate the Market Value Adjustment and numerical examples illustrating its application are shown in Appendix B of this prospectus. At the end of a Market Value Adjusted Fixed Guarantee Period, the Market Value Adjusted Fixed Guarantee Period Account expires and we will automatically transfer the money from such Guarantee Period Account to establish a new Market Value Adjusted Fixed Guarantee Period Account with the same Market Value Adjusted Fixed Guarantee Period, unless you notify us otherwise. The new Market Value Adjusted Fixed Guarantee Period Account will be established as of the day immediately following the expiration date of the expiring Market Value Adjusted Guarantee Period Account ("New Account Start Date.") If the Market Value Adjusted Fixed Guarantee Period is no longer being offered, we will establish a new Market Value Adjusted Fixed Guarantee Period Account with the next shortest Market Value Adjusted Fixed Guarantee Period available. Prior to the expiration date, we will send you a notice, which will outline the options available to you. During the 30-Day MVA Window a Market Value Adjustment will not be applied to transfers and withdrawals from the expiring Market Value Adjusted Fixed Guarantee Period Account and you may elect to: .. transfer all or part of the money from the Market Value Adjusted Fixed Guarantee Period Account to establish a new Guarantee Period Account within the Standard Fixed Account Option or the Market Value Adjusted Fixed Account Option, if available; or .. transfer all or part of the money from the Market Value Adjusted Fixed Guarantee Period Account to other investment alternatives available at the time; or .. withdraw all or part of the money from the Market Value Adjusted Fixed Guarantee Period Account. Withdrawal charges and taxes may apply. The money in the Market Value Adjusted Fixed Guarantee Period Account will earn interest at the interest rate declared for the new Market Value Adjusted Fixed Guarantee Period Account from the New Account Start Date until the date we receive notification of your election. If we receive notification of your election to make a transfer or withdrawal from an expiring Market Value Adjusted Fixed Guarantee Period Account on or before the New Account Start Date, the transfer or withdrawal will be deemed to have occurred on the New Account Start Date. If we receive notification of your election to make a transfer or withdrawal from the expiring Market Value Adjusted Fixed Guarantee Period Account after the New Account Start Date, but before the expiration of the 30-Day MVA Window, the transfer or withdrawal will be deemed to have occurred on the day we receive such notice. Any remaining balance not withdrawn or transferred will earn interest for the term of the new Market Value Adjusted Fixed Guarantee Period Account, at the interest rate declared for such Account. If we do not receive notification from you within the 30-Day Window, we will assume that you have elected to transfer the amount in the expiring Market Value Adjusted Fixed Guarantee Period Account to establish a new Market Value Adjusted Fixed Guarantee Period Account with the same Market Value Adjusted Fixed Guarantee Period, and the amount in the new Market Value Adjusted Fixed Guarantee Period Account will continue to earn interest at the interest rate declared for the new Market Value Adjusted Fixed Guarantee Period Account, and will be subject to all restrictions of the Market Value Adjusted Fixed Account Option. If we no longer offer that Market Value Adjusted Fixed Guarantee Period, the Market Value Adjusted Fixed Guarantee Period for the new Market Value Adjusted Fixed Guarantee Period Account will be the next shortest term length we offer for the Market Value Adjusted Fixed Account Option at that time, and the interest rate will be the rate declared by us at that time for such term. 54 PROSPECTUS TRANSFERS DURING THE ACCUMULATION PHASE During the Accumulation Phase, you may transfer Contract Value among the investment alternatives. You may not transfer Contract Value to the DCA Fixed Account Option or add to an existing Transfer Period Account. You may request transfers in writing on a form that we provided or by telephone according to the procedure described below. You may make up to 12 transfers per Contract Year without charge. A transfer fee equal to 1.00% of the amount transferred applies to each transfer after the 12th transfer in any Contract Year. This fee may be changed, but in no event will it exceed 2.00% of the amount transferred. Multiple transfers on a single Valuation Date are considered a single transfer for purposes of assessing the transfer fee. If you added the TrueReturn Option or a Withdrawal Benefit Option to your Contract, certain restrictions on transfers apply. See the "TrueReturn/SM/ Accumulation Benefit Option" and "Withdrawal Benefit Options" sections of this prospectus for more information. The minimum amount that you may transfer from the Standard Fixed Account Option, Market Value Adjusted Fixed Account Option or a Variable Sub-Account is $100 or the total remaining balance in the Standard Fixed Account Option, Market Value Adjusted Fixed Account Option or the Variable Sub-Account, if less. These limitations do not apply to the DCA Fixed Account Option. The total amount that you may transfer or withdraw from a Standard Fixed Guarantee Period Account in a Contract Year is 30% of the amount used to establish that Guarantee Period Account. See "Standard Fixed Account Option". The minimum amount that can be transferred to the Standard Fixed Account Option and the Market Value Adjusted Fixed Account Option is $100. We will process transfer requests that we receive before 3:00 p.m. Central Time on any Valuation Date using the Accumulation Unit Values for that Date. We will process requests completed after 3:00 p.m. on any Valuation Date using the Accumulation Unit Values for the next Valuation Date. The Contract permits us to defer transfers from the Fixed Account Options for up to 6 months from the date we receive your request. If we decide to postpone transfers from any Fixed Account Option for 30 days or more, we will pay interest as required by applicable law. Any interest would be payable from the date we receive the transfer request to the date we make the transfer. We reserve the right to waive any transfer restrictions. TRANSFERS DURING THE PAYOUT PHASE During the Payout Phase, you may make transfers among the Variable Sub-Accounts so as to change the INVESTMENT ALTERNATIVES: TRANSFERS - -------------------------------------------------------------------------------- relative weighting of the Variable Sub-Accounts on which your variable income payments will be based. You may make up to 12 transfers per Contract Year within each Income Plan. You may not convert any portion of your fixed income payments into variable income payments. You may not make transfers among Income Plans. You may make transfers from the variable income payments to the fixed income payments to increase the proportion of your income payments consisting of fixed income payments, unless you have selected the Income Protection Benefit Option. TELEPHONE OR ELECTRONIC TRANSFERS You may make transfers by telephone by calling 1-800-457-7617. The cut-off time for telephone transfer requests is 3:00 p.m. Central Time. In the event that the New York Stock Exchange closes early, i.e., before 3:00 p.m. Central Time, or in the event that the Exchange closes early for a period of time but then reopens for trading on the same day, we will process telephone transfer requests as of the close of the Exchange on that particular day. We will not accept telephone requests received from you at any telephone number other than the number that appears in this paragraph or received after the close of trading on the Exchange. If you own the Contract with a joint Contract Owner, unless we receive contrary instructions, we will accept instructions from either you or the other Contract Owner. We may suspend, modify or terminate the telephone transfer privilege, as well as any other electronic or automated means we previously approved, at any time without notice. We use procedures that we believe provide reasonable assurance that the telephone transfers are genuine. For example, we tape telephone conversations with persons purporting to authorize transfers and request identifying information. Accordingly, we disclaim any liability for losses resulting from allegedly unauthorized telephone transfers. However, if we do not take reasonable steps to help ensure that a telephone authorization is valid, we may be liable for such losses. MARKET TIMING & EXCESSIVE TRADING The Contracts are intended for long-term investment. Market timing and excessive trading can potentially dilute the value of Variable Sub-Accounts and can disrupt management of a Portfolio and raise its expenses, which can impair Portfolio performance and adversely affect your Contract Value. Our policy is not to accept knowingly any money intended for the purpose of market timing or excessive trading. Accordingly, you should not invest in the Contract if your purpose is to engage in market timing or excessive trading, and you should refrain from such practices if you currently own a Contract. 55 PROSPECTUS We seek to detect market timing or excessive trading activity by reviewing trading activities. Portfolios also may report suspected market-timing or excessive trading activity to us. If, in our judgment, we determine that the transfers are part of a market timing strategy or are otherwise harmful to the underlying Portfolio, we will impose the trading limitations as described below under "Trading Limitations." Because there is no universally accepted definition of what constitutes market timing or excessive trading, we will use our reasonable judgment based on all of the circumstances. While we seek to deter market timing and excessive trading in Variable Sub-Accounts, because our procedures involve the exercise of reasonable judgment, we may not identify or prevent some market timing or excessive trading. Moreover, imposition of trading limitations is triggered by the detection of market timing or excessive trading activity, and the trading limitations are not applied prior to detection of such trading activity. Therefore, our policies and procedures do not prevent such trading activity before it is detected. As a result, some investors may be able to engage in market timing and excessive trading, while others are prohibited, and the Portfolio may experience the adverse effects of market timing and excessive trading described above. TRADING LIMITATIONS We reserve the right to limit transfers among the investment alternatives in any Contract year, require that all future transfer requests be submitted through U.S. Postal Service First Class Mail thereby refusing to accept transfer requests via telephone, facsimile, Internet, or overnight delivery, or to refuse any transfer request, if: .. we believe, in our sole discretion, that certain trading practices, such as excessive trading, by, or on behalf of, one or more Contract Owners, or a specific transfer request or group of transfer requests, may have a detrimental effect on the Accumulation Unit Values of any Variable Sub-Account or on the share prices of the corresponding Portfolio or otherwise would be to the disadvantage of other Contract Owners; or .. we are informed by one or more of the Portfolios that they intend to restrict the purchase, exchange, or redemption of Portfolio shares because of excessive trading or because they believe that a specific transfer or group of transfers would have a detrimental effect on the prices of Portfolio shares. In making the determination that trading activity constitutes market timing or excessive trading, we will consider, among other things: .. the total dollar amount being transferred, both in the aggregate and in the transfer request; .. the number of transfers you make over a period of time and/or the period of time between transfers (note: one set of transfers to and from a Variable Sub-Account in a short period of time can constitute market timing); .. whether your transfers follow a pattern that appears designed to take advantage of short term market fluctuations, particularly within certain Variable Sub-Account underlying Portfolios that we have identified as being susceptible to market timing activities (e.g., International, High Yield, and Small Cap Variable Sub-Accounts); .. whether the manager of the underlying Portfolio has indicated that the transfers interfere with Portfolio management or otherwise adversely impact the Portfolio; and .. the investment objectives and/or size of the Variable Sub-Account underlying Portfolio. We seek to apply these trading limitations uniformly. However, because these determinations involve the exercise of discretion, it is possible that we may not detect some market timing or excessive trading activity. As a result, it is possible that some investors may be able to engage in market timing or excessive trading activity, while others are prohibited, and the Portfolio may experience the adverse effects of market timing and excessive trading described above. If we determine that a Contract Owner has engaged in market timing or excessive trading activity, we will require that all future transfer requests be submitted through U.S. Postal Service First Class Mail thereby refusing to accept transfer requests via telephone, facsimile, Internet, or overnight delivery. If we determine that a Contract Owner continues to engage in a pattern of market timing or excessive trading activity we will restrict that Contract Owner from making future additions or transfers into the impacted Variable Sub-Account(s) or will restrict that Contract Owner from making future additions or transfers into the class of Variable Sub-Account(s) if the Variable Sub-Accounts(s) involved are vulnerable to arbitrage market timing trading activity (e.g., International, High Yield, and Small Cap Variable Sub-Accounts). In our sole discretion, we may revise our Trading Limitations at any time as necessary to better deter or minimize market timing and excessive trading or to comply with regulatory requirements. SHORT TERM TRADING FEES The underlying Portfolios are authorized by SEC regulation to adopt and impose redemption fees if a Portfolio's Board of Directors determines that such fees are necessary to minimize or eliminate short-term transfer activity that can reduce or dilute the value of outstanding shares issued by the Portfolio. The Portfolio will set the parameters relating to the redemption fee and such parameters may vary by Portfolio. If a Portfolio elects to adopt and charge redemption fees, these fees will be passed on to the Contract Owner(s) responsible for the short-term transfer activity generating the fee. 56 PROSPECTUS We will administer and collect redemption fees in connection with transfers between the Variable Sub-Accounts and forward these fees to the Portfolio. Please consult the Portfolio's prospectus for more complete information regarding the fees and charges associated with each Portfolio. DOLLAR COST AVERAGING PROGRAM Through our Dollar Cost Averaging Program, you may automatically transfer a fixed dollar amount on a regular basis from any Variable Sub-Account or any Fixed Account Option to any of the other Variable Sub-Accounts. You may not use the Dollar Cost Averaging Program to transfer amounts to the Fixed Account Options. This program is available only during the Accumulation Phase. We will not charge a transfer fee for transfers made under this Program, nor will such transfers count against the 12 transfers you can make each Contract Year without paying a transfer fee. The theory of dollar cost averaging is that if purchases of equal dollar amounts are made at fluctuating prices, the aggregate average cost per unit will be less than the average of the unit prices on the same purchase dates. However, participation in this Program does not assure you of a greater profit from your purchases under the Program nor will it prevent or necessarily reduce losses in a declining market. Call or write us for instructions on how to enroll. AUTOMATIC PORTFOLIO REBALANCING PROGRAM Once you have allocated your money among the Variable Sub-Accounts, the performance of each Sub-Account may cause a shift in the percentage you allocated to each Sub-Account. If you select our Automatic Portfolio Rebalancing Program, we will automatically rebalance the Contract Value in each Variable Sub-Account and return it to the desired percentage allocations. Money you allocate to the Fixed Account will not be included in the rebalancing. We will rebalance your account quarterly, semi-annually, or annually. We will measure these periods according to your instructions. We will transfer amounts among the Variable Sub-Accounts to achieve the percentage allocations you specify. You can change your allocations at any time by contacting us in writing or by telephone. The new allocation will be effective with the first rebalancing that occurs after we receive your written or telephone request. We are not responsible for rebalancing that occurs prior to receipt of proper notice of your request. Example: Assume that you want your initial purchase payment split among 2 Variable Sub-Accounts. You want 40% to be in the Putnam VT Income - Class IB Sub-Account and 60% to be in the Oppenheimer Small- & Mid-Cap Growth/VA - Service Shares Sub-Account. Over the next 2 months the bond market does very well while the stock market performs poorly. At the end of the first quarter, the Putnam VT Income - Class IB Sub-Account now represents 50% of your holdings because of its increase in value. If you choose to have your holdings in a Contract or Contracts rebalanced quarterly, on the first day of the next quarter we would sell some of your units in the Putnam VT Income - Class IB Sub-Account for the appropriate Contract(s) and use the money to buy more units in the Oppenheimer Small- & Mid-Cap Growth/VA - Service Shares Sub-Account so that the percentage allocations would again be 40% and 60%, respectively. The transfers made under the program do not count towards the 12 transfers you can make without paying a transfer fee, and are not subject to a transfer fee. Portfolio rebalancing is consistent with maintaining your allocation of investments among market segments, although it is accomplished by reducing your Contract Value allocated to the Variable Sub-Accounts that performed better during the previous time period. EXPENSES - -------------------------------------------------------------------------------- As a Contract Owner, you will bear, directly or indirectly, the charges and expenses described below. CONTRACT MAINTENANCE CHARGE During the Accumulation Phase, on each Contract Anniversary, we will deduct a $30 contract maintenance charge from your assets invested in the Putnam VT Money Market Variable Sub-Account. If there are insufficient assets in that Variable Sub-Account, we will deduct the balance of the charge proportionally from the other Variable Sub-Accounts. We also will deduct this charge if you withdraw your entire Contract Value, unless your Contract qualifies for a waiver. During the Payout Phase, we will deduct the charge proportionately from each income payment. The charge is to compensate us for the cost of administering the Contracts and the Variable Account. Maintenance costs include expenses we incur in billing and collecting purchase payments; keeping records; processing death claims, cash withdrawals, and policy changes; proxy statements; calculating Accumulation Unit Values and income payments; and issuing reports to Contract Owners and regulatory agencies. We cannot increase the charge. We will waive this charge: .. for the remaining term of the Contract once your total purchase payments to the Contract equal $50,000 or more; or 57 PROSPECTUS .. for a Contract Anniversary if, on that date, your entire Contract Value is allocated to the Fixed Account Options, or after the Payout Start Date, if all income payments are fixed income payments. We also reserve the right to waive this charge if you own more than one Contract and the Contracts meet certain minimum dollar amount requirements. In addition, we reserve the right to waive this charge for all Contracts. ADMINISTRATIVE EXPENSE CHARGE We deduct an administrative expense charge daily at an annual rate of 0.19% of the average daily net assets you have invested in the Variable Sub-Accounts. We intend this charge to cover actual administrative expenses that exceed the revenues from the contract maintenance charge. There is no necessary relationship between the amount of administrative charge imposed on a given Contract and the amount of expenses that may be attributed to that Contract. We assess this charge each day during the Accumulation Phase and the Payout Phase. We may increase this charge for Contracts issued in the future, but in no event will it exceed 0.35%. We guarantee that after your Contract is issued we will not increase this charge for your Contract. MORTALITY AND EXPENSE RISK CHARGE We deduct a mortality and expense risk charge daily from the net assets you have invested in the Variable Sub-Accounts. We assess mortality and expense risk charges during the Accumulation and Payout Phases of the Contract, except as noted below. The annual mortality and expense risk charge for the Contracts without any optional benefit are as follows: The mortality and expense risk charge is for all the insurance benefits available with your Contract (including our guarantee of annuity rates and the death benefits), for certain expenses of the Contract, and for assuming the risk (expense risk) that the current charges will not be sufficient in the future to cover the cost of administering the Contract. The mortality and expense risk charge also helps pay for the cost of the Credit Enhancement under the ALLSTATE ADVISOR PLUS CONTRACT. If the charges under the Contract are not sufficient, then we will bear the loss. We charge an additional amount for the optional benefits to compensate us for the additional risk that we accept by providing these options. You will pay additional mortality and expense risk charges if you add any optional benefits to your Contract. The additional mortality and expense risk charge you pay will depend upon which of the options you select: .. MAV Death Benefit Option: The current mortality and expense risk charge for this option is 0.20%. For Contract Owners who added the MAV Death Benefit Option prior to May 1, 2003, the mortality and expense risk charge is 0.15%. This charge may be increased, but will never exceed 0.30%. We guarantee that we will not increase the mortality and expense risk charge for this option after you have added it to your Contract. We deduct the charge for this option only during the Accumulation Phase. .. Enhanced Beneficiary Protection (Annual Increase) Option: The current mortality and expense risk charge for this option is 0.30%. For Contract Owners who added the Enhanced Beneficiary Protection (Annual Increase) Option prior to May 1, 2003, the mortality and expense risk charge is 0.15%. This charge will never exceed 0.30%. We guarantee that we will not increase the mortality and expense risk charge for this option after you have added it to your Contract. We deduct the charge for this option only during the Accumulation Phase. .. Earnings Protection Death Benefit Option: The current mortality and expense risk charge for this option is: . 0.25% (maximum of 0.35%) if the oldest Contract Owner and oldest Annuitant are age 70 or younger on the Rider Application Date; . 0.40% (maximum of 0.50%) if the oldest Contract Owner or oldest Annuitant is age 71 or older and both are age 79 or younger on the Rider Application Date. The charges may be increased but they will never exceed the maximum charges shown above. We guarantee that we will not increase the mortality and expense risk charge for this option after you have added it to your Contract. However, if your spouse elects to continue the Contract in the event of your death and if he or she elects to continue the Earnings Protection Death Benefit Option, the charge will be based on the ages of the oldest new Contract Owner and the oldest Annuitant at the time the Contract is continued. Refer to the Death Benefit Payments provision in this prospectus for more information. We deduct the charge for this option only during the Accumulation Phase. .. Income Protection Benefit Option: The current mortality and expense risk charge for this option is 0.50%. This charge may be increased, but will never exceed 0.75%. We guarantee that we will not increase the mortality and expense risk charge for this option after you have added it to your Contract. The charge will be deducted only during the Payout Phase. 58 PROSPECTUS
ALLSTATE ADVISOR 1.10% ---------------------------------------- ALLSTATE ADVISOR PLUS 1.40% ---------------------------------------- ALLSTATE ADVISOR PREFERRED (5-YEAR WITHDRAWAL CHARGE OPTION) 1.40% ---------------------------------------- ALLSTATE ADVISOR PREFERRED (3-YEAR WITHDRAWAL CHARGE OPTION) 1.50% ---------------------------------------- ALLSTATE ADVISOR PREFERRED (NO WITHDRAWAL CHARGE OPTION) 1.60% ---------------------------------------- TRUERETURN/SM/ ACCUMULATION BENEFIT OPTION FEE We charge a separate annual Rider Fee for the TrueReturn Option. The current annual Rider Fee is 0.50% of the Benefit Base. We deduct the Rider Fee on each Contract Anniversary during the Rider Period or until you terminate the Option, if earlier. We reserve the right to increase the Rider Fee to up to 1.25%. We currently charge the same Rider Fee regardless of the Rider Period and Guarantee Option you select; however, we reserve the right to charge different fees for different Rider Periods and Guarantee Options in the future. However, once we issue your Option, we cannot change the Rider Fee that applies to your Contract. If you elect to exercise the Rider Trade-In Option, the new Rider Fee will be based on the Rider Fee percentage applicable to a new TrueReturn Option at the time of trade-in. The Rider Fee is deducted only from the Variable Sub-Account(s) on a pro rata basis in the proportion that your value in each Variable Sub-Account bears to your total value in all Variable Sub-Accounts. Rider Fees will decrease the number of Accumulation Units in each Variable Sub-Account. If you terminate this Option prior to the Rider Maturity Date on a date other than a Contract Anniversary, we will deduct an entire Rider Fee from your Contract Value on the date the Option is terminated. However, if the Option is terminated due to death of the Contract Owner or Annuitant, we will not charge a Rider Fee unless the date we receive a Complete Request for Settlement of the Death Proceeds is also a Contract Anniversary. If the Option is terminated on the Payout Start Date, we will not charge a Rider Fee unless the Payout Start Date is also a Contract Anniversary. Additionally, if you elect to exercise the Rider Trade-In Option and cancel the Option on a date other than a Contract Anniversary, we will not deduct a Rider Fee on the date the Option is terminated. Refer to the "TrueReturn/SM/ Accumulation Benefit Option" section of this prospectus for more information. SPOUSAL PROTECTION BENEFIT (CO- ANNUITANT) OPTION FEE AND SPOUSAL PROTECTION BENEFIT (CO- ANNUITANT) OPTION FOR CUSTODIAL INDIVIDUAL RETIREMENT ACCOUNTS FEE We charge a separate annual Rider Fee for both the Spousal Protection Benefit (Co-Annuitant) Option and Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts. The current annual Rider Fee is 0.10% of the Contract Value for either Option. This applies to all new Options added on or after January 1, 2005. For Options added prior to January 1, 2005, there is no charge associated with the Options. We deduct the Rider Fee on each Contract Anniversary up to and including the date you terminate the Option. We reserve the right to increase the annual Rider Fee to up to 0.15% of the Contract Value. We reserve the right to charge different Rider Fees for new Spousal Protection Benefit (Co-Annuitant) Options and/ or new Spousal Protection Benefit (Co-Annuitant) Options for Custodial Individual Retirement Accounts we offer in the future. Once we issue your Option, we cannot change the Rider Fee that applies to your Contract. The Rider Fee is deducted only from the Variable Sub-Account(s) on a pro-rata basis in the proportion that your value in each Variable Sub-Account bears to your total value in all Variable Sub-Accounts. Rider Fees will decrease the number of Accumulation Units in each Variable Sub-Account. If, at the time the Rider Fee is deducted, the Rider Fee exceeds the total value in all Variable Sub-Accounts, the excess of the Rider Fee over the total value in all Variable Sub-Accounts will be waived. The first Rider Fee will be deducted on the first Contract Anniversary following the Rider Date. A Rider Fee will be deducted on each subsequent Contract Anniversary up to and including the date the Option is terminated. We will not charge a Rider Fee on the date the Option is terminated, on a date other than the Contract Anniversary, if the Option is terminated on the Payout Start Date or due to death of the Contract Owner or Annuitant. For the first Contract Anniversary following the Rider Date, the Rider Fee is equal to the number of months from the Rider Date to the first Contract Anniversary, divided by twelve, multiplied by 0.10%, with the result multiplied by the Contract Value as of the first Contract Anniversary. For subsequent Contract Anniversaries, the Rider Fee is equal to 0.10% multiplied by the Contract Value as of that Contract Anniversary. If you terminate this Option on a date other than a Contract Anniversary, we will deduct a Rider Fee. The Rider Fee will be pro-rated to cover the period from the last Contract Anniversary to the date of termination, or if you terminate this Option during the first Benefit Year, from the Rider Date to the date of termination. The pro-rated Rider Fee will be equal to the number of full months from the Contract Anniversary to the date of termination, or if you terminate this Option during the first Contract Year after adding the Option, the number of full months from the Rider Date to the date of termination, divided by twelve, multiplied by 0.10%, with the result multiplied by the Contract Value immediately prior to the termination. RETIREMENT INCOME GUARANTEE OPTION FEE We discontinued offering the Retirement Income Guarantee Options as of January 1, 2004 (up to May 1, 2004 in certain states). Fees described below apply to Contract Owners who selected an Option prior to January 1, 2004 (up to May 1, 2004 in certain states). We impose a separate annual Rider Fee for RIG 1 and RIG 2. The current annual Rider Fee for RIG 1 is 0.40% of the Income Base on each Contract Anniversary. For Contract Owners who added RIG 1 prior to May 1, 2003, the annual Rider Fee is 0.25%. The current annual 59 PROSPECTUS Rider Fee for RIG 2 is 0.55% of the Income Base on each Contract Anniversary. For Contract Owners who added RIG 2 prior to May 1, 2003, the annual Rider Fee is 0.45%. See "Retirement Income Guarantee Options" for details. We deduct the Rider Fees only from the Variable Sub-Account(s) on a pro-rata basis. For the initial Contract Anniversary after the Rider Date, we will deduct a fee pro rated to cover the period from the Rider Date to the Contract Anniversary. In the case of a full withdrawal of the Contract Value on any date other than the Contract Anniversary, we will deduct from the amount paid upon withdrawal the Rider Fee multiplied by the appropriate Income Base immediately prior to the withdrawal pro rated to cover the period the Option was in effect during the current Contract Year. We will not deduct the Rider Fee during the Payout Phase. WITHDRAWAL BENEFIT OPTION FEE We charge separate annual Rider Fees for each of the SureIncome Option (the "SureIncome Option Fee"), the SureIncome Plus Option (the "SureIncome Plus Option Fee"), and the SureIncome For Life Option (the "SureIncome For Life Option Fee"). Collectively, we refer to the SureIncome Option Fee, the SureIncome Plus Option Fee and the SureIncome For Life Option Fee as the "Withdrawal Benefit Option Fees". "Withdrawal Benefit Option Fee" is used to refer to any one of the Withdrawal Benefit Option Fees. The current annual SureIncome Option Fee is 0.50% of the Benefit Base. The current annual SureIncome Plus Option Fee and the current annual SureIncome For Life Option Fee are each 0.65% of the Benefit Base. We reserve the right to increase any Withdrawal Benefit Option Fee to up to 1.25% of the Benefit Base. We reserve the right to charge a different Withdrawal Benefit Option Fee for different Withdrawal Benefit Factors or Withdrawal Benefit Options we may offer in the future. Once we issue your Withdrawal Benefit Option, we cannot change the Withdrawal Benefit Option Fee that applies to your Contract. If applicable, if you elect to exercise the Rider Trade-In Option, the new Withdrawal Benefit Option Fee will be based on the Withdrawal Benefit Option Fee percentage applicable to a new Withdrawal Benefit Option available at the time of trade-in. We deduct the Withdrawal Benefit Option Fees on each Contract Anniversary up to and including the date you terminate the Option. The Withdrawal Benefit Option Fees are deducted only from the Variable Sub-Account(s) on a pro-rata basis in the proportion that your Contract Value in each Variable Sub-Account bears to your total Contract Value in all Variable Sub-Accounts. The Withdrawal Benefit Option Fee will decrease the number of Accumulation Units in each Variable Sub-Account. If, at the time the Withdrawal Benefit Option Fee is deducted, the Withdrawal Benefit Option Fee exceeds the total Contract Value in all Variable Sub-Accounts, the excess of the Withdrawal Benefit Option Fee over the total Contract Value in all Variable Sub-Accounts will be waived. The first Withdrawal Benefit Option Fee will be deducted on the first Contract Anniversary following the Rider Date. A Withdrawal Benefit Option Fee will be deducted on each subsequent Contract Anniversary up to and including the date the Withdrawal Benefit Option is terminated. For the first Contract Anniversary following the Rider Date, the SureIncome Option Fee is equal to the number of full months from the Rider Date to the first Contract Anniversary, divided by twelve, multiplied by 0.50%, with the result multiplied by the Benefit Base on the first Contract Anniversary. For subsequent Contract Anniversaries, the SureIncome Option Fee is equal to 0.50% multiplied by the Benefit Base as of that Contract Anniversary. For the first Contract Anniversary following the Rider Date, the SureIncome Plus Option Fee and the SureIncome For Life Option Fee are each equal to the number of full months from the Rider Date to the first Contract Anniversary, divided by twelve, multiplied by 0.65%, with the result multiplied by the Benefit Base on the first Contract Anniversary increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) and decreased by withdrawals, but prior to the Benefit Base being recalculated based on the Contract Value. For subsequent Contract Anniversaries, the SureIncome Plus Option Fee and the SureIncome For Life Option Rider Fee are each equal to 0.65% multiplied by the Benefit Base on that Contract Anniversary increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) and decreased by withdrawals, but prior to the Benefit Base being recalculated based on the Contract Value for any of the ten Contract Anniversaries after the Rider Date. As previously stated, we will deduct Withdrawal Benefit Option Fees on each Contract Anniversary up to and including the date you terminate the Option. If you terminate the SureIncome Option or the SureIncome Plus Option on a date other than a Contract Anniversary, we will deduct the Withdrawal Benefit Option Fee unless the termination is on the Payout Start Date or is due to the death of the Contract Owner or Annuitant. If you terminate the SureIncome For Life Option on a date other than a Contract Anniversary, we will deduct the SureIncome For Life Option Fee unless the termination is on the Payout Start Date or is due to the death of the Contract Owner, Annuitant, or the death of the SureIncome Covered Life. The Withdrawal Benefit Option Fee will be pro-rated to cover the period from the last Contract Anniversary to the date of termination or, if you terminate the Withdrawal Benefit Option during the first Benefit Year, from the Rider Date to the date of termination. For the SureIncome Option, the pro-rated SureIncome Option Fee will be 60 PROSPECTUS equal to the number of full months from the Contract Anniversary to the date of termination or, if you terminate the SureIncome Option during the first Benefit Year, the number of full months from the Rider Date to the date of termination, divided by twelve, multiplied by 0.50%, with the result multiplied by the Benefit Base immediately prior to the withdrawal or termination. For the SureIncome Plus Option and the SureIncome For Life Option, the pro-rated Withdrawal Benefit Option Fee will be equal to the number of full months from the Contract Anniversary to the date of termination or, if you terminate the Withdrawal Benefit Option during the first Benefit Year, the number of full months from the Rider Date to the date of termination, divided by twelve, multiplied by 0.65%, with the result multiplied by the Benefit Base immediately prior to the withdrawal or termination. The Withdrawal Benefit Option Fee will be waived during the Withdrawal Benefit Payout Phase. TRANSFER FEE We impose a fee upon transfers in excess of 12 during any Contract Year. The current fee is equal to 1.00% of the dollar amount transferred. This fee may be increased, but in no event will it exceed 2.00% of the dollar amount transferred. We will not charge a transfer fee on transfers that are part of a Dollar Cost Averaging Program or Automatic Portfolio Rebalancing Program. WITHDRAWAL CHARGE We may assess a withdrawal charge from the purchase payment(s) you withdraw. The amount of the charge will depend on the number of years that have elapsed since we received the purchase payment being withdrawn. A schedule showing the withdrawal charges applicable to each Contract appears on page 13. If you make a withdrawal before the Payout Start Date, we will apply the withdrawal charge percentage in effect on the date of the withdrawal, or the withdrawal charge percentage in effect on the following day, whichever is lower. Withdrawals also may be subject to tax penalties or income tax. You should consult with your tax counsel or other tax advisor regarding any withdrawals. Withdrawals from the Market Value Adjusted Fixed Account Option may be subject to a market value adjustment. Refer to page 51 for more information on market value adjustments. FREE WITHDRAWAL AMOUNT You can withdraw up to the Free Withdrawal Amount each Contract Year without paying the withdrawal charge. The Free Withdrawal Amount for a Contract Year is equal to 15% of all purchase payments (excluding Credit Enhancements for Allstate Advisor Plus Contracts) that are subject to a withdrawal charge as of the beginning of that Contract Year, plus 15% of the purchase payments added to the Contract during the Contract Year. The withdrawal charge applicable to Contracts owned by Charitable Remainder Trusts is described below. Purchase payments no longer subject to a withdrawal charge will not be used to determine the Free Withdrawal Amount for a Contract Year, nor will they be assessed a withdrawal charge, if withdrawn. The Free Withdrawal Amount is not available in the Payout Phase. You may withdraw up to the Free Withdrawal Amount in each Contract Year it is available without paying a withdrawal charge; however, the amount withdrawn may be subject to a Market Value Adjustment or applicable taxes. If you do not withdraw the entire Free Withdrawal Amount in a Contract Year, any remaining portion may not be carried forward to increase the Free Withdrawal Amount in a later Contract Year. For purposes of assessing the withdrawal charge, we will treat withdrawals as coming from the oldest purchase payments first as follows: 1) Purchase payments that no longer are subject to withdrawal charges; 2) Free Withdrawal Amount (if available); 3) Remaining purchase payments subject to withdrawal charges, beginning with the oldest purchase payment; 4) Any earnings not previously withdrawn. However, for federal income tax purposes, earnings are considered to come out first, which means that you will pay taxes on the earnings portion of your withdrawal. If the Contract Owner is a Charitable Remainder Trust, the Free Withdrawal Amount in a Contract Year is equal to the greater of: .. The Free Withdrawal Amount described above; or .. Earnings as of the beginning of the Contract Year that have not been previously withdrawn. For purposes of assessing the withdrawal charge for a Charitable Remainder Trust-Owned Contract, we will treat withdrawals as coming from the earnings first and then the oldest purchase payments as follows: 1) Earnings not previously withdrawn; 2) Purchase payments that are no longer subject to withdrawal charges; 3) Free Withdrawal Amount in excess of earnings; 4) Purchase payments subject to withdrawal charges, beginning with the oldest purchase payment. If you have selected the ALLSTATE ADVISOR PREFERRED CONTRACT WITH NO WITHDRAWAL CHARGE OPTION, there are no withdrawal charges applicable and, therefore, no Free Withdrawal Amount. Amounts withdrawn may be subject to a Market Value Adjustment or applicable taxes. 61 PROSPECTUS ALL CONTRACTS We do not apply a withdrawal charge in the following situations: .. the death of the Contract Owner or Annuitant (unless the Settlement Value is used); .. withdrawals taken to satisfy IRS minimum distribution rules for the Contract; or .. withdrawals that qualify for one of the waivers described below. We use the amounts obtained from the withdrawal charge to pay sales commissions and other promotional or distribution expenses associated with marketing the Contracts, and to help defray the cost of the Credit Enhancement for the ALLSTATE ADVISOR PLUS CONTRACTS. To the extent that the withdrawal charge does not cover all sales commissions and other promotional or distribution expenses, or the cost of the Credit Enhancement, we may use any of our corporate assets, including potential profit which may arise from the mortality and expense risk charge or any other charges or fee described above, to make up any difference. Withdrawals taken prior to the Payout Start Date are generally considered to come from the earnings in the Contract first. If the Contract is tax-qualified, generally all withdrawals are treated as distributions of earnings. Withdrawals of earnings are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty. You should consult your own tax counsel or other tax advisers regarding any withdrawals. CONFINEMENT WAIVER. We will waive the withdrawal charge on any applicable withdrawal taken under your Contract if the following conditions are satisfied: 1. you or the Annuitant, if the Contract Owner is not a living person, are first confined to a long term care facility or a hospital for at least 90 consecutive days. You or the Annuitant must enter the long term care facility or hospital at least 30 days after the Issue Date, 2. we receive your request for withdrawal and Due Proof of confinement no later than 90 days following the end of your or the Annuitant's confinement at the long term care facility or hospital, and 3. a physician must have prescribed the confinement and the confinement must be medically necessary (as defined in the Contract). "Due Proof " includes, but is not limited to, a letter signed by a physician stating the dates the Owner or Annuitant was confined, the name and location of the Long Term Care Facility or Hospital, a statement that the confinement was medically necessary, and, if released, the date the Owner or Annuitant was released from the Long Term Care Facility or Hospital. TERMINAL ILLNESS WAIVER. We will waive the withdrawal charge on any applicable withdrawal under your Contract if: 1. you or the Annuitant, if the Contract Owner is not a living person, are diagnosed by a physician as having a terminal illness (as defined in the Contract) at least 30 days after the Issue Date, and 2. you provide Due Proof of diagnosis to us before or at the time you request the withdrawal. "Due Proof " includes, but is not limited to, a letter signed by a physician stating that the Owner or Annuitant has a Terminal Illness and the date the Terminal Illness was first diagnosed. UNEMPLOYMENT WAIVER. We will waive the withdrawal charge on one partial or a full withdrawal taken under your Contract, if you meet the following requirements: 1. you or the Annuitant, if the Contract Owner is not a living person, become unemployed at least one year after the Issue Date, 2. you or the Annuitant receive Unemployment Compensation for at least 30 consecutive days as a result of that unemployment, and 3. you or the Annuitant claim this benefit within 180 days of your or the Annuitant's initial receipt of Unemployment Compensation. Before we will waive any withdrawal charges, you must give us Due Proof prior to, or at the time of, the withdrawal request, that you or the Annuitant have been unemployed and have been granted Unemployment Compensation for at least 30 consecutive days. "Unemployment Compensation" means unemployment compensation received from a unit of state or federal government in the U.S. "Due Proof " includes, but is not limited to, a legible photocopy of an unemployment compensation payment that meets the above described criteria with regard to dates and a signed letter from you stating that you or the Annuitant meet the above described criteria. You may exercise this benefit once over the term of the Contract. Amounts withdrawn may be subject to Market Value Adjustments. These waivers do not apply under the ALLSTATE ADVISOR PREFERRED CONTRACT WITH NO WITHDRAWAL CHARGE OPTION. Please refer to your Contract for more detailed information about the terms and conditions of these waivers. The laws of your state may limit the availability of these waivers and may also change certain terms and/or benefits available under the waivers. You should consult your Contract for further details on these variations. Also, even 62 PROSPECTUS if you do not pay a withdrawal charge because of these waivers, a Market Value Adjustment may apply and you still may be required to pay taxes or tax penalties on the amount withdrawn. You should consult your tax advisor to determine the effect of a withdrawal on your taxes. PREMIUM TAXES Some states and other governmental entities (e.g., municipalities) charge premium taxes or similar taxes. We are responsible for paying these taxes and will deduct them from your Contract Value. Some of these taxes are due when the Contract is issued, others are due when income payments begin or upon surrender. Our current practice is not to charge anyone for these taxes until income payments begin or when a total withdrawal occurs including payment upon death. We may some time in the future discontinue this practice and deduct premium taxes from the purchase payments. Premium taxes generally range from 0% to 4%, depending on the state. At the Payout Start Date, we deduct the charge for premium taxes from each investment alternative in the proportion that the Contract Value in the investment alternative bears to the total Contract Value. DEDUCTION FOR SEPARATE ACCOUNT INCOME TAXES We are not currently maintaining a provision for taxes. In the future, however, we may establish a provision for taxes if we determine, in our sole discretion, that we will incur a tax as a result of the operation of the Variable Account. We will deduct for any taxes we incur as a result of the operation of the Variable Account, whether or not we previously made a provision for taxes and whether or not it was sufficient. Our status under the Internal Revenue Code is briefly described in the "Taxes" section of this prospectus. OTHER EXPENSES Each Portfolio deducts management fees and other expenses from its assets. You indirectly bear the charges and expenses of the Portfolios whose shares are held by the Variable Sub-Accounts. These fees and expenses are described in the prospectuses for the Portfolios. For a summary of Portfolio annual expenses see page 13. Allstate Life or the principal underwriter of the Contracts, Allstate Distributors, receives compensation from the investment advisers, administrators or distributors, or their affiliates, of the Portfolios in connection with the administrative, distribution (12b-1), or other services Allstate Distributors or we provide to the Portfolios. We collect this compensation under agreements between us and the Portfolio's investment adviser, administrators or distributors, and is calculated based on a percentage of the average assets allocated to the Portfolio. ACCESS TO YOUR MONEY - -------------------------------------------------------------------------------- WITHDRAWALS You can withdraw some or all of your Contract Value at any time prior to the Payout Start Date. Withdrawals also are available under limited circumstances on or after the Payout Start Date. See "Income Plans" on page 64. The amount payable upon withdrawal is the Contract Value (or portion thereof) next computed after we receive the request for a withdrawal at our home office, adjusted by any applicable Market Value Adjustment, less any applicable withdrawal charges, income tax withholding, penalty tax, contract maintenance charge, Rider Fee, and any premium taxes. We will pay withdrawals from the Variable Account within 7 days of receipt of the request, subject to postponement in certain circumstances. You can withdraw money from the Variable Account or the Fixed Account Option(s) available under your Contract. To complete a partial withdrawal from the Variable Account, we will cancel Accumulation Units in an amount equal to the withdrawal and any applicable charges, fees and taxes. You must name the investment alternative from which you are taking the withdrawal. If none is named, then the withdrawal request is incomplete and cannot be honored. In general, you must withdraw at least $50 at a time. Withdrawals from the Standard Fixed Account Option may be subject to a restriction. See "Standard Fixed Account Options" on page 51. Withdrawals taken prior to the Payout Start Date are generally considered to come from the earnings in the Contract first. If the Contract is tax-qualified, generally all withdrawals are treated as distributions of earnings. Withdrawals of earnings are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal penalty tax. If any withdrawal reduces your Contract Value to less than $1,000, we will treat the request as a withdrawal of the entire Contract Value, unless a Withdrawal Benefit Option is currently attached to your Contract. See "Withdrawal Benefit Options" above for more information. If you request a total withdrawal, we may require that you return your Contract to us. Your Contract will terminate if you withdraw all of your Contract Value, subject to certain exceptions if a Withdrawal Benefit Option is currently attached to your Contract. See "Withdrawal Benefit Options" for more details. We will, however, ask you to confirm your withdrawal request before terminating your Contract. If we terminate your Contract, we will distribute to you its Contract Value, adjusted by any applicable Market Value Adjustment, less withdrawal and other charges and taxes. 63 PROSPECTUS WRITTEN REQUESTS AND FORMS IN GOOD ORDER. Written requests must include sufficient information and/or documentation, and be sufficiently clear, to enable us to complete your request without the need to exercise discretion on our part to carry it out. You may contact our Customer Service Center to learn what information we require for your particular request to be in "good order." Additionally, we may require that you submit your request on our form. We reserve the right to determine whether any particular request is in good order, and to change or waive any good order requirements at any time. POSTPONEMENT OF PAYMENTS We may postpone the payment of any amounts due from the Variable Account under the Contract if: 1. The New York Stock Exchange is closed for other than usual weekends or holidays, or trading on the Exchange is otherwise restricted, 2. An emergency exists as defined by the SEC, or 3. The SEC permits delay for your protection. We may delay payments or transfers from the Fixed Account Option(s) available under your Contract for up to 6 months or shorter period if required by law. If we delay payment or transfer for 30 days or more, we will pay interest as required by law. SYSTEMATIC WITHDRAWAL PROGRAM You may choose to receive systematic withdrawal payments on a monthly, quarterly, semi-annual, or annual basis at any time prior to the Payout Start Date. Please consult your sales representative or call us at 1-800-457-7617 for more information. Any systematic withdrawal programs based upon IRS minimum distribution requirements may be modified to ensure guarantees under any Withdrawal Benefit Option currently attached to your Contract are not impacted by the withdrawals. Withdrawals made outside of any systematic withdrawal program based upon IRS minimum distribution requirements may impact the guarantees provided under any Withdrawal Benefit Option currently attached to your Contract. Depending on fluctuations in the value of the Variable Sub-Accounts and the value of the Fixed Account Options, systematic withdrawals may reduce or even exhaust the Contract Value. Income taxes may apply to systematic withdrawals. Please consult your tax advisor before taking any withdrawal. We will make systematic withdrawal payments to you or your designated payee. At our discretion, we may modify or suspend the Systematic Withdrawal Program and charge a processing fee for the service. If we modify or suspend the Systematic Withdrawal Program, existing systematic withdrawal payments will not be affected. MINIMUM CONTRACT VALUE If your request for a partial withdrawal would reduce your Contract Value to less than $1,000, we may treat it as a request to withdraw your entire Contract Value, unless a Withdrawal Benefit Option is currently attached to your Contract. See "Withdrawal Benefit Options" above for more information. Your Contract will terminate if you withdraw all of your Contract Value. We will, however, ask you to confirm your withdrawal request before terminating your Contract. If we terminate your Contract, we will distribute to you its Contract Value, adjusted by any applicable Market Value Adjustment, less withdrawal and other charges and applicable taxes. INCOME PAYMENTS - -------------------------------------------------------------------------------- PAYOUT START DATE The Payout Start Date is the day that we apply your Contract Value adjusted by any applicable Market Value Adjustment and less applicable taxes to an Income Plan. The first income payment must occur at least 30 days after the Issue Date. The Payout Start Date may be no later than: .. the Annuitant's 99th birthday, or .. the 10th Contract Anniversary, if later. You may change the Payout Start Date at any time by notifying us in writing of the change at least 30 days before the scheduled Payout Start Date. Absent a change, we will use the Payout Start Date stated in your Contract. INCOME PLANS An "Income Plan" is a series of payments made on a scheduled basis to you or to another person designated by you. You may select more than one Income Plan. If you choose more than one Income Plan, you must specify what proportions of your Contract Value, adjusted by any Market Value Adjustment and less any applicable taxes, should be allocated to each such Income Plan. For tax reporting purposes, your cost basis and any gain on the Contract will be allocated proportionally to each Income Plan you select based on the proportion of your Contract Value applied to each such Income Plan. We reserve the right to limit the number of Income Plans that you may select. If you choose to add the Income Protection Benefit Option, certain restrictions may apply as described under "Income Protection Benefit Option," below. If you do not select an Income Plan, we will make income payments in accordance with Income Plan 1 with a Guaranteed Payment Period of 10 years. If any Contract Owner dies during the Payout Phase, the new Contract Owner will be the surviving 64 PROSPECTUS Contract Owner. If there is no surviving Contract Owner, the new Contract Owner will be the Beneficiary(ies) as described in the "Beneficiary" section of this prospectus. Any remaining income payments will be paid to the new Contract Owner as scheduled. Income payments to Beneficiaries may be subject to restrictions established by the Contract Owner. After the Payout Start Date, you may not make withdrawals (except as described below) or change your choice of Income Plan. Currently seven Income Plans are available. Depending on the Income Plan(s) you choose, you may receive: .. fixed income payments; .. variable income payments; or .. a combination of the two. A portion of each payment will be considered taxable and the remaining portion will be a non-taxable return of your investment in the Contract, which is also called the "basis." Once the basis in the Contract is depleted, all remaining payments will be fully taxable. If the Contract is tax-qualified, generally, all payments will be fully taxable. Taxable payments taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty. The seven Income Plans are: INCOME PLAN 1 - LIFE INCOME WITH GUARANTEED NUMBER OF PAYMENTS. Under this plan, we make periodic income payments for at least as long as the Annuitant lives. If the Annuitant dies in the Payout Phase, we will continue to pay income payments until the guaranteed number of payments has been paid. The number of months guaranteed ("Guaranteed Payment Period") may range from 0 to 360 months. If the Annuitant is age 90 or older as of the Payout Start Date, the Guaranteed Payment Period may range from 60 to 360 months. INCOME PLAN 2 - JOINT AND SURVIVOR LIFE INCOME WITH GUARANTEED NUMBER OF PAYMENTS. Under this plan, we make periodic income payments for at least as long as either the Annuitant or the joint Annuitant, named at the time the Income Plan was selected, lives. If both the Annuitant and joint Annuitant die in the Payout Phase, we will continue to pay the income payments until the guaranteed number of payments has been paid. The Guaranteed Payment Period may range from 0 to 360 months. If either the Annuitant or joint Annuitant is age 90 or older as of the Payout Start Date, the Guaranteed Payment Period may range from 60 to 360 months. You may elect a reduced survivor plan of 50%, 66% or 75% of the payment amount. If you do not elect a reduced survivor amount, the payments will remain at 100%. If you elect a reduced survivor payment plan, the amount of each income payment initially will be higher but a reduction will take place at the later of 1) the death of an Annuitant; or 2) at the end of the guaranteed payment period. INCOME PLAN 3 - GUARANTEED NUMBER OF PAYMENTS. Under this plan, we make periodic income payments for the period you have chosen. These payments do not depend on the Annuitant's life. The shortest number of months guaranteed is 60 (120 if the Payout Start Date occurs prior to the third Contract Anniversary). The longest number of months guaranteed is 360 or the number of months between the Payout Start Date and the date that the Annuitant reaches age 100, if greater. In no event may the number of months guaranteed exceed 600. We will deduct the mortality and expense risk charge from the assets of the Variable Sub-Account supporting this Income Plan even though we may not bear any mortality risk. You may make withdrawals, change the length of the guaranteed payment period, or change the frequency of income payments under Income Plan 3. See "Modifying Payments" and "Payout Withdrawals" below for more details. INCOME PLAN 4 - LIFE INCOME WITH CASH REFUND. Under this plan, we make periodic income payments until the death of the Annuitant. If the death of the Annuitant occurs before the total amount applied to an Income Plan is paid out, we will pay a lump sum payment of the remaining amount. Payments under this plan are available only as fixed income payments. INCOME PLAN 5 - JOINT LIFE INCOME WITH CASH REFUND. Under this plan, we make periodic income payments until the deaths of both the Annuitant and joint Annuitant. If the deaths of both the Annuitant and joint Annuitant occur before the total amount applied to an Income Plan is paid out, we will pay a lump sum payment of the remaining amount. Currently, a reduced survivor plan is not available. Payments under this plan are available only as fixed income payments. INCOME PLAN 6 - LIFE INCOME WITH INSTALLMENT REFUND. Under this plan, we make periodic income payments until the later of: (1) the death of the Annuitant; or (2) the total amount paid out under the annuity is equal to the total amount applied to the Income Plan. If the death of the Annuitant occurs before the total amount applied to an Income Plan is paid out, we will continue to make payments in the same manner until any remaining payments are paid out. Payments under this plan are available only as fixed income payments. INCOME PLAN 7 - JOINT LIFE INCOME WITH INSTALLMENT REFUND. Under this plan, we make periodic income payments until the later of: (1) the deaths of both the Annuitant and joint Annuitant; or (2) the total amount paid out under the annuity is equal to the total amount applied to the Income Plan. If the deaths of both the Annuitant and joint Annuitant occur before the total amount applied to an Income Plan is paid out, we will continue to make payments in the same manner until any remaining payments are paid out. Currently, a reduced survivor plan is not available. Payments under this plan are available only as fixed income payments. 65 PROSPECTUS If you choose an Income Plan with payments that continue for the life of the Annuitant or joint Annuitant, we may require proof of age and sex of the Annuitant or joint Annuitant before starting income payments, and proof that the Annuitant or joint Annuitant is alive before we make each payment. Please note that under Income Plans 1 and 2, if you do not select a Guaranteed Payment Period, it is possible that the payee could receive only one income payment if the Annuitant and any joint Annuitant both die before the second income payment, or only two income payments if they die before the third income payment, and so on. The length of any Guaranteed Payment Period under your selected Income Plan generally will affect the dollar amounts of each income payment. As a general rule, longer Guarantee Payment Periods result in lower income payments, all other things being equal. For example, if you choose an Income Plan with payments that depend on the life of the Annuitant but with no guaranteed payments, the income payments generally will be greater than the income payments made under the same Income Plan with a specified Guaranteed Payment Period. MODIFYING PAYMENTS After the Payout Start Date, you may make the following changes under Income Plan 3: .. You may request to modify the length of the Guaranteed Payment Period. If you elect to change the length of the Guaranteed Payment Period, the new Guaranteed Payment Period must be within the original minimum and maximum period you would have been permitted to select on the Payout Start Date. However, the maximum payment period permitted will be shortened by the period elapsed since the original Guaranteed Payment Period began. If you change the length of your Guaranteed Payment Period, we will compute the present value of your remaining payments, using the same assumptions we would use if you were terminating the income payments, as described in Payout Withdrawal. We will then adjust the remaining payments to equal what that value would support based on those same assumptions and based on the revised Guaranteed Payment Period. .. You may request to change the frequency of your payments. We currently allow you to make the changes described above once each Contract Year; on that single occasion you may make either change alone, or both simultaneously. We reserve the right to change this practice at any time without prior notice. Changes to either the frequency of payments or length of the Guaranteed Payment Period will result in a change to the payment amount and may change the amount of each payment that is taxable to you. Modifying payments of this Contract may not be allowed under Qualified Contracts. In order to satisfy required minimum distributions ("RMD") under current Treasury regulations, once income payments have begun over a Guaranteed Payment Period, the Guaranteed Payment Period may not be changed even if the new period is shorter than the maximum permitted. Please consult with a competent tax advisor prior to making a request to modify payments if your Contract is subject to RMD requirements. Any change to either the frequency of payments or length of a Guaranteed Payment Period will take effect on the next payment date after we accept the requested change. PAYOUT WITHDRAWAL You may terminate all or a portion of the income payments being made under Income Plan 3 at any time and withdraw their present value ("withdrawal value"), subject to a Payout Withdrawal Charge, by writing to us ("Payout Withdrawal"). For variable income payments, the withdrawal value is equal to the present value of the variable income payments being terminated, calculated using a discount rate equal to the assumed investment rate that was used in determining the initial variable payment. For fixed income payments, the withdrawal value is equal to the present value of the fixed income payments being terminated, calculated using a discount rate equal to the applicable current interest rate (this may be the initial interest rate in some states.) The applicable current interest rate is the rate we are using on the date we receive your Payout Withdrawal request to determine income payments for a new annuitization with a payment period equal to the remaining payment period of the income payments being terminated. A Payout Withdrawal must be at least $50. If any Payout Withdrawal reduces the value of the remaining income payments to an amount not sufficient to provide an initial payment of at least $20, we reserve the right to terminate the Contract and pay you the present value of the remaining income payments in a lump sum. If you withdraw the entire value of the remaining income payments, the Contract will terminate. You must specify the investment alternative(s) from which you wish to make a Payout Withdrawal. If you withdraw a portion of the value of your remaining income payments, the payment period will remain unchanged and your remaining payment amounts will be reduced proportionately. PAYOUT WITHDRAWAL CHARGE To determine the Payout Withdrawal Charge, we assume that purchase payments are withdrawn first, beginning with the oldest payment. When an amount equal to all purchase payments has been withdrawn, additional withdrawals will not be assessed a Payout Withdrawal Charge. 66 PROSPECTUS Payout Withdrawals will be subject to a Payout Withdrawal Charge for each Contract as follows: ADDITIONAL INFORMATION. We may make other Income Plans available. You may obtain information about them by writing or calling us. On the Payout Start Date, you must specify the portion of the Contract Value to be applied to variable income payments and the portion to be applied to fixed income payments. For the portion of your Contract Value to be applied to variable income payments, you must also specify the Variable Sub-Accounts on which to base the variable income payments as well as the allocation among those Variable Sub-Accounts. If you do not choose how the Contract Value is to be applied, then the portion of the Contract Value in the Variable Account on the Payout Start Date will be applied to variable income payments, according to the Variable Sub-Account allocations as of the Payout Start Date, and the remainder of the Contract Value will be applied to fixed income payments. We will apply your Contract Value, adjusted by any applicable Market Value Adjustment, less applicable taxes, to your Income Plan(s) on the Payout Start Date. We can make income payments in monthly, quarterly, semi-annual or annual installments, as you select. If the Contract Value is less than $2,000 when it is applied to the Income Plan(s) you choose, or not enough to provide an initial payment of at least $20 when it is applied to the Income Plan(s) you choose, and state law permits, we may: .. terminate the Contract and pay you the Contract Value, adjusted by any applicable Market Value Adjustment and less any applicable taxes, in a lump sum instead of the periodic payments you have chosen, or .. reduce the frequency of your payments so that each payment will be at least $20. VARIABLE INCOME PAYMENTS The amount of your variable income payments depends upon the investment results of the Variable Sub-Accounts you select, the premium taxes you pay, the age and sex of the Annuitant, and the Income Plan you choose. We guarantee that the payments will not be affected by: (a) company mortality experience; or (b) the amount of our administration expenses. We cannot predict the total amount of your variable income payments, which may be more or less than your total purchase payments because (a) variable income payments vary with the investment results of the underlying Portfolios; and (b) under some of the Income Plans, we make income payments only so long as an Annuitant is alive or any applicable Guaranteed Payment Period has not yet expired. In calculating the amount of the periodic payments in the annuity tables in the Contracts, we used an assumed investment rate ("AIR", also known as benchmark rate) of 3%. Currently, you may choose either a 6%, 5%, or 3% AIR per year. If you select the Income Protection Benefit Option, however, the 3% AIR must apply. The 6% and 5% AIR may not be available in all states (check with your representative for availability). Currently, if you do not choose one, the 5% AIR will automatically apply (except in states in which the 5% AIR is not available; in those states, the 3% AIR will automatically apply). You may not change the AIR after you have selected an Income Plan. We reserve the right to offer other assumed investment rates. If the actual net investment return of the Variable Sub-Accounts you choose is less than the AIR, then the dollar amount of your variable income payments will decrease. The dollar amount of your variable income payments will increase, however, if the actual net investment return exceeds the AIR. The dollar amount of the variable income payments stays level if the net investment return equals the AIR. With a higher AIR, your initial income payment will be larger than with a lower AIR. While income payments continue to be made, however, this disparity will become smaller and, if the payments have continued long enough, each payment will be smaller than if you had initially chosen a lower AIR. Please refer to the Statement of Additional Information for more detailed information as to how we determine variable income payments. You may also elect a variable income payment stream consisting of level monthly, quarterly or semi-annual payments. If you elect to receive level monthly, quarterly or semi-annual payments, the payments must be recalculated annually. You may only elect to receive level payments at or before the Payout Start Date. If you have elected level payments for an Income Plan(s), you may not make any variable to fixed payment transfers within such Income Plan(s). We will determine the amount of each annual payment as described above, place this 67 PROSPECTUS
Number of Complete Years Since We Received the Purchase Payment Being Withdrawn/Applicable Charge: CONTRACT: 0 1 2 3 4 5 6 7 8+ ------------------------------------------------------------------------------------------- Allstate Advisor 7% 7% 6% 5% 4% 3% 2% 0% 0% Allstate Advisor Plus 8.5% 8.5% 8.5% 7.5% 6.5% 5.5% 4% 2.5% 0% Allstate Advisor Preferred with: 5-Year Withdrawal Charge Option 7% 6% 5% 4% 3% 0% 3-Year Withdrawal Charge Option 7% 6% 5% 0% No Withdrawal Charge Option None amount in our general account, and then distribute it in level monthly, quarterly or semi-annual payments. The sum of the level payments will exceed the annual calculated amount because of an interest rate factor we use, which may vary from year to year, but will not be less than 2% per year. We do not allow withdrawals of the annual amount unless you make a full or partial withdrawal request of the value of the remaining payments under Income Plan 3. Withdrawals will be assessed a Payout Withdrawal Charge, if applicable. If the Annuitant dies while you are receiving level payments, you will not be entitled to receive any remaining level payments for that year (unless the Annuitant dies before the end of the Guaranteed Payment Period). For example, if you have selected Income Plan 1 with no Guaranteed Payment Period and the Annuitant dies during the year, the Beneficiary will not be entitled to receive the remaining level payments for that year. INCOME PROTECTION BENEFIT OPTION We offer an Income Protection Benefit Option, which may be added to your Contract on the Payout Start Date for an additional mortality and expense risk charge if you have selected variable income payments subject to the following conditions: .. The Annuitant and joint Annuitant, if applicable, must be age 75 or younger on the Payout Start Date. .. You must choose Income Plan 1 or 2, and the Guaranteed Payment Period must be for at least 120 months, unless the Internal Revenue Service requires a different payment period. .. You may apply the Income Protection Benefit Option to more than one Income Plan. .. The AIR must be 3% for the Income Plan(s) to which you wish to apply this benefit. .. You may only add the Income Protection Benefit Option on the Payout Start Date and, once added, the option cannot be cancelled. .. You may not add the Income Protection Benefit Option without our prior approval if your Contract Value is greater than $1,000,000 at the time you choose to add the Income Protection Benefit Option. .. You may not convert variable income payments to fixed income payments. If you select the Income Protection Benefit Option, we guarantee that your variable income payments under each of the Income Plans to which the option is applied will never be less that 85% of the initial variable amount income value ("Income Protection Benefit"), as calculated on the Payout Start Date under such Income Plans, unless you have elected a reduced survivor payment plan under Income Plan 2. If you have elected a reduced survivor payment plan, we guarantee that your variable income payments to which the option is applied will never be less than 85% of the initial variable amount income value prior to the later of 1) the death of an Annuitant; or 2) the end of the guaranteed payment period. On or after the later of these events, we guarantee that your variable income payments will never be less than 85% of the initial variable amount income value multiplied by the percentage you elected for your reduced survivor plan. See Appendix C for numerical examples that illustrate how the Income Protection Benefit is calculated. If you add the Income Protection Benefit Option to your Contract, the mortality and expense risk charge during the Payout Phase will be increased. The charge for the Income Protection Benefit Option will apply only to the Income Plan(s) to which the Option has been applied. Currently, the charge for this option is 0.50% of the average daily net Variable Account assets supporting the variable income payments to which the Income Protection Benefit Option applies. We may change the amount we charge, but it will not exceed 0.75% of the average daily net Variable Account assets supporting the variable income payments to which the Income Protection Benefit Option applies. Once the option is issued, we will not increase what we charge you for the benefit. In order to ensure that we achieve adequate investment diversification ("Income Protection Diversification Requirement"), we reserve the right, in our sole discretion, to impose limitations on the investment alternatives in which you may invest during the Payout Phase with respect to the assets supporting the variable income payments to which the Income Protection Benefit Option applies. These limitations may include, but are not limited to, maximum investment limits on certain Variable Sub-Accounts, exclusion of certain Variable Sub-Accounts, required minimum allocations to certain Variable Sub-Accounts, and/or the required use of Automatic Portfolio Rebalancing. To achieve our Income Protection Diversification Requirement, we have divided the Variable Sub-Accounts into three separate categories: "unrestricted," "restricted" and "excluded." Currently, we require that you allocate between 30% to 100% of the assets supporting your variable income payments to the unrestricted Variable Sub-Accounts in any manner you choose. You may allocate up to 70% of the assets supporting your variable income payments to the restricted Variable Sub-Accounts. You may not, however, allocate more than 20% of the assets supporting your variable income payments to any one of the restricted Variable Sub-Accounts. You may not allocate any portion of the assets supporting your variable income payments to the excluded Variable Sub-Accounts. In the following three tables, we list our current Income Protection Diversification Requirement/(1)/: UNRESTRICTED VARIABLE SUB-ACCOUNTS. There is no limit to the amount of assets supporting your variable income 68 PROSPECTUS payments that you may allocate to any one or more of the following Variable Sub-Accounts. Currently, we require that you allocate at least 30% of the assets supporting your variable income payments to this category. Fidelity VIP Freedom Income - Service Class 2 Sub-Account FTVIP Franklin U.S. Government - Class 2 Sub-Account Oppenheimer Core Bond/VA - Service Shares Sub-Account Oppenheimer Global Strategic Income/VA - Service Shares Sub-Account/(6)/ Putnam VT Income - Class IB Sub-Account Putnam VT Money Market - Class IB Sub-Account RESTRICTED VARIABLE SUB-ACCOUNTS. You may allocate up to 70% of the amount of assets supporting your variable income payments to the following Variable Sub-Accounts. Currently, you may not allocate more than 20% of the amount of assets supporting your variable income payments to any one of the restricted Variable Sub-Accounts. Fidelity VIP Freedom 2010 - Service Class 2 Sub-Account Fidelity VIP Freedom 2020 - Service Class 2 Sub-Account Fidelity VIP Freedom 2030 - Service Class 2 Sub-Account Fidelity VIP Contrafund(R) - Service Class 2 Sub-Account Fidelity VIP Index 500 - Service Class 2 Sub-Account Fidelity VIP Mid Cap - Service Class 2 Sub-Account FTVIP Franklin Income Securities - Class 2 Sub-Account FTVIP Franklin Growth and Income Securities -Class 2 Sub-Account FTVIP Franklin Large Cap Growth Securities -Class 2 Sub-Account FTVIP Mutual Global Discovery Securities - Class 2 Sub-Account FTVIP Franklin Small Cap Value Securities - Class 2 Sub-Account FTVIP Mutual Shares Securities - Class 2 Sub-Account FTVIP Templeton Foreign Securities - Class 2 Sub-Account Lord Abbett Series - Fundamental Equity Sub-Account/(7)/ Lord Abbett Series - Bond-Debenture Sub-Account Lord Abbett Series - Growth and Income Sub-Account Lord Abbett Series - Growth Opportunities Sub-Account Lord Abbett Series - Mid-Cap Value Sub-Account Oppenheimer Balanced/VA - Service Shares Sub-Account Oppenheimer Capital Appreciation/VA - Service Shares Sub-Account Oppenheimer Global Securities/VA - Service Shares Sub-Account Oppenheimer High Income/VA Sub-Account Oppenheimer Main Street(R)/VA - Service Shares Sub-Account Oppenheimer Main Street Small Cap(R)/VA - Service Shares Sub-Account Putnam VT Equity Income - Class IB Sub-Account Putnam VT Global Asset Allocation - Class IB Sub-Account Putnam VT Growth and Income - Class IB Sub-Account Putnam VT High Yield - Class IB Sub-Account Putnam VT International Equity - Class IB Sub-Account Putnam VT Investors - Class IB Sub-Account Putnam VT Research - Class IB Sub-Account/(5)/ Putnam VT The George Putnam Fund of Boston -Class IB Sub-Account Putnam VT Global Utilities - Class IB Sub-Account/(5)/ Putnam VT Voyager - Class IB Sub-Account Van Kampen LIT Comstock, Class II Sub-Account/(8)/ Van Kampen LIT Growth and Income, Class II Sub-Account/(8)/ UIF Equity and Income, Class II Sub-Account/(4)(8)/ UIF Capital Growth, Class II Sub-Account (Class I & II)/(2)(4)/ UIF Global Franchise, Class II Sub-Account/(4)/ UIF U.S. Mid Cap Value, Class II Sub-Account (Class I & II)/(2)(4)(8)/ UIF U.S. Real Estate, Class II Sub-Account/(4)/ 69 PROSPECTUS EXCLUDED VARIABLE SUB-ACCOUNTS. Currently, none of the following Variable Sub-Accounts are available to support variable income payments. Fidelity VIP Growth Stock - Service Class 2 Sub-Account FTVIP Templeton Developing Markets Securities - Class 2 Sub-Account Oppenheimer Small- & Mid-Cap Growth/VA - Service Shares Sub-Account/(6)/ Putnam VT Global Health Care - Class IB Sub-Account/(5)/ Putnam VT New Opportunities - Class IB Sub-Account/(5)/ Putnam VT Vista - Class IB Sub-Account UIF Emerging Markets Debt, Class II Sub-Account/(4) / UIF Mid Cap Growth, Class II Sub-Account/(4) / UIF Small Company Growth, Class II Sub-Account/(4) / Van Kampen LIT Capital Growth, Class II Sub-Account/(8)/ Van Kampen LIT Mid Cap Growth, Class II Sub-Account/(3)(8)/ (1)Effective May 1, 2003, the FTVIP Franklin Small-Mid Cap Growth Securities - Class 2 Sub-Account, and the FTVIP Templeton Global Bond Securities - Class 2 Sub-Account are no longer available for new investments. If you are currently invested in the Variable Sub-Accounts that invest in these Portfolios you may continue your investment. If you are currently enrolled in one of our automatic transaction programs, such as automatic additions, portfolio rebalancing or dollar cost averaging, we will continue to effect automatic transactions to the Portfolios in accordance with that program.* (2)The UIF Capital Growth, Class II Sub-Account and the UIF U.S. Mid Cap Value, Class II Sub-Account are offered with Contracts issued on or after May 1, 2004. Contract Owners of Contracts issued prior to May 1, 2004, may only invest in the UIF Capital Growth, Class I Sub-Account and the UIF U.S. Mid Cap Value, Class I Sub-Account. Contracts issued prior to May 1, 2004 that participate in certain TrueBalance model portfolios may invest in UIF Capital Growth, Class II Sub-Account and the UIF U.S. MidCap Value, Class II Sub-Account. (3)Effective May 1, 2006, the Van Kampen LIT Mid Cap Growth Portfolio, Class II (formerly called the Van Kampen LIT Aggressive Growth Portfolio, Class II) was closed to new investments. If you are currently invested in the Variable Sub-Account that invests in this Portfolio, you may continue your investment.* (4)Morgan Stanley Investment Management Inc., the adviser to the UIF Portfolios, does business in certain instances using the name Van Kampen. (5)Effective October 1, 2004, the Putnam VT Global Health Care - Class IB Sub-Account, Putnam VT New Opportunities - Class IB Sub-Account, Putnam VT Research - Class IB Sub-Account, and the Putnam VT Global Utilities - Class IB Sub-Account closed to new investments.* (6)Effective May 1, 2010, the following Portfolios changed their names: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Oppenheimer MidCap Fund/VA Oppenheimer Small- & Mid-Cap Growth Fund/VA ----------------------------------------------------------------------------- Oppenheimer Strategic Bond Fund/VA Oppenheimer Global Strategic Income Fund/VA ----------------------------------------------------------------------------- (7)Effective May 1, 2010, the following Portfolio changed its name: PREVIOUS NAME NEW NAME ----------------------------------------------------------------------------- Lord Abbett Series Fund Inc. - All Lord Abbett Series Fund Inc. - Value Portfolio Fundamental Equity Portfolio ----------------------------------------------------------------------------- (8)Subject to shareholder approval, certain portfolios of The Universal Institutional Funds, Inc., and the Van Kampen Life Investment Trust will be reorganized into corresponding funds of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds). It is anticipated that the reorganization will occur in the second quarter of 2010. Each such portfolio and its corresponding acquiring fund is shown below: REORGANIZING PORTFOLIOS ACQUIRING FUNDS ----------------------------------------------------------------------------- THE UNIVERSAL INSTITUTIONAL FUNDS, AIM VARIABLE INSURANCE FUNDS INC: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- UIF Equity and Income Portfolio, Invesco Van Kampen V.I. Equity and Class II Income Fund - Series II ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class I Fund - Series I ----------------------------------------------------------------------------- UIF U.S. Mid Cap Value Portfolio - Invesco Van Kampen V.I. Mid Cap Value Class II Fund - Series II ----------------------------------------------------------------------------- AIM VARIABLE INSURANCE FUNDS VAN KAMPEN LIFE INVESTMENT TRUST: (INVESCO VARIABLE INSURANCE FUNDS): ----------------------------------------------------------------------------- Van Kampen LIT Capital Growth Invesco Van Kampen V.I. Capital Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Comstock Portfolio - Invesco Van Kampen V.I. Comstock Fund Class II - Series II ----------------------------------------------------------------------------- Van Kampen LIT Growth and Income Invesco Van Kampen V.I. Growth and Portfolio - Class II Income Fund - Series II ----------------------------------------------------------------------------- Van Kampen LIT Mid Cap Growth Invesco Van Kampen V.I. Mid Cap Portfolio - Class II Growth Fund - Series II ----------------------------------------------------------------------------- * AS NOTED ABOVE, CERTAIN VARIABLE SUB-ACCOUNTS ARE CLOSED TO NEW INVESTMENTS. IF YOU INVESTED IN THESE VARIABLE SUB-ACCOUNTS PRIOR TO THE EFFECTIVE CLOSE DATE, YOU MAY CONTINUE YOUR INVESTMENTS. IF YOU CHOOSE TO ADD THE INCOME PROTECTION BENEFIT OPTION ON OR AFTER THE EFFECTIVE CLOSE DATE, YOU MUST TRANSFER ANY PORTION OF YOUR CONTRACT VALUE THAT IS ALLOCATED TO THESE VARIABLE SUB-ACCOUNTS TO ANY OF THE REMAINING VARIABLE SUB-ACCOUNTS AVAILABLE WITH THE INCOME PROTECTION BENEFIT OPTION PRIOR TO ADDING IT TO YOUR CONTRACT. You must use quarterly Automatic Portfolio Rebalancing to meet our Income Protection Diversification Requirement. On the date of each rebalancing, we will reallocate the amount of the assets supporting your variable income payments according to the rebalancing percentages you have selected, subject to the then current restrictions and exclusions in effect. We expect that the restrictions and exclusions for each category will change from time to time. 70 PROSPECTUS Any change in these restrictions and exclusions will become effective no later than the next regularly scheduled rebalancing of your Variable Sub-Account choices on or immediately after the date of change. The Income Protection Diversification Requirement is based on a model. We may use a model developed and maintained by us or we may elect to use a model developed or provided by an independent third party. We will notify you at least 30 days before we make any change to our Income Protection Diversification Requirement. We may determine which Variable Sub-Accounts are eligible for each category or we may elect to follow the recommendations of an independent third party. We may at any time make new determinations as to which Variable Sub-Accounts are unrestricted, restricted or excluded. We may do so for a variety of reasons including, but not limited to, a change in the investment objectives or policies of a Portfolio, or the failure, in our sole determination, of such Portfolio to invest in accordance with its stated investment objective or policies. Transfers made for purposes of meeting the Income Protection Diversification Requirement will not count towards the number of free transfers you may make each Contract Year. See "Investment Alternatives: Transfers," above, for additional information. FIXED INCOME PAYMENTS We guarantee income payment amounts derived from any Fixed Account Option for the duration of the Income Plan. The guaranteed income payment amounts will change if the frequency of payments or the length of the payment period changes. We calculate the fixed income payments by: .. adjusting the portion of the Contract Value in any Fixed Account Option on the Payout Start Date by any applicable Market Value Adjustment; .. deducting any applicable taxes; and .. applying the resulting amount to the greater of: (a) the appropriate income payment factor for the selected Income Plan from the Income Payment Table in your Contract; or (b) such other income payment factor as we are offering on the Payout Start Date. We may defer your request to make a withdrawal from fixed income payments for a period of up to 6 months or whatever shorter time state law may require. If we defer payments for 30 days or more, we will pay interest as required by law from the date we receive the withdrawal request to the date we make payment. RETIREMENT INCOME GUARANTEE OPTIONS Effective January 1, 2004, we ceased offering the Retirement Income Guarantee Options ("RIG 1" and "RIG 2"), except in a limited number of states. Effective May 1, 2004, the RIG 1 and RIG 2 Options are no longer available in any state. If you added a Retirement Income Guarantee Option to your Contract prior to January 1, 2004 (up to May 1, 2004 in certain states), your Option will continue to apply to your Contract. Also, effective January 1, 2004, we discontinued the Trade-In Program, except for Contract Owners who added RIG 1 or RIG 2 prior to May 1, 2003. For Contract Owners who added RIG 1 or RIG 2 on or after May 1, 2003, you may cancel your RIG 1 or RIG 2 Option during the 60-day period following your next 3rd Contract Anniversary after January 1, 2004. If you do not cancel the Option during this 60-day period, you will not be permitted to cancel it later. Please check with your sales representative for details. The following describes the Retirement Income Guarantee Options for Contract Owners who elected the Option prior to January 1, 2004 (up to May 1, 2004 in certain states). We refer to the issue date of the option as the "Rider Date." You may add only one Retirement Income Guarantee Option to your Contract. The oldest Contract Owner and oldest Annuitant must be age 75 or younger on the Rider Application Date. Once you add a rider to your Contract, it may not be cancelled except during the 60-day period following the next 3rd Contract Anniversary after January 1, 2004, as described above. WE RESERVE THE RIGHT TO IMPOSE LIMITATIONS ON THE INVESTMENT ALTERNATIVES IN WHICH YOU MAY INVEST AS A CONDITION OF THESE OPTIONS. THESE RESTRICTIONS MAY INCLUDE, BUT ARE NOT LIMITED TO, MAXIMUM INVESTMENT LIMITS ON CERTAIN INVESTMENT ALTERNATIVES, EXCLUSION OF CERTAIN INVESTMENT ALTERNATIVES, REQUIRED MINIMUM ALLOCATIONS TO CERTAIN VARIABLE SUB-ACCOUNTS AND/OR THE AUTOMATIC PORTFOLIO REBALANCING. CURRENTLY, NO SUCH RESTRICTIONS ARE BEING IMPOSED. For each option, an "Income Base" is calculated, which is used only for the purpose of calculating the "Guaranteed Retirement Income Benefit" and the appropriate "Rider Fee," all defined below. The Income Base does not provide a Contract Value or guarantee performance of any investment option. The Income Base for RIG 1 and RIG 2 are described in more detail below. You may apply the Income Base less applicable taxes to an Income Plan on the Payout Start Date and receive the Guaranteed Retirement Income Benefit if all of the following conditions are satisfied: .. The Payout Start Date must be on or after the 10th Contract Anniversary of the Rider Date. .. The Payout Start Date must occur during the 30-day period following a Contract Anniversary. .. The oldest Annuitant must be age 99 or younger as of the Payout Start Date. .. You must select Fixed Amount Income Payments only. .. You must select Income Plan 1 or 2, with a Guaranteed Payment Period of at least: . 120 months, if the youngest Annuitant is age 80 or younger as of the Payout Start Date; or 71 PROSPECTUS . 60 months, if the youngest Annuitant is older than age 80 as of the Payout Start Date. The "Guaranteed Retirement Income Benefit" is determined by applying the Income Base, less any applicable taxes, to the appropriate monthly income payment factor shown in the Income Payment Tables in your Contract for the selected Income Plan. If a different payment frequency (quarterly, semi-annual, or annual) or different Income Plan is selected, an income payment factor for the selected payment frequency and Income Plan is determined on the same mortality and interest rate basis as the Income Payment Tables shown in your Contract. On the Payout Start Date, the income payments for the selected Income Plan will be the greater of: .. The Guaranteed Retirement Income Benefit; or .. For fixed income payments, the Contract Value, adjusted by any applicable Market Value Adjustment, less any applicable taxes is applied to the greater of: the appropriate income payment factor for the selected Income Plan from the income payment tables in your Contract, or an income payment factor for the selected Income Plan that we are offering on the Payout Start Date. We assess an annual Rider Fee if you selected one of the Retirement Income Guarantee Options. The Rider Fee is deducted on each Contract Anniversary on a pro rata basis from each of the Variable Sub-Accounts in which your Contract Value is invested on that date. The Rider Fee will decrease the number of Accumulation Units in each Variable Sub-Account. The Rider Fee is deducted only during the Accumulation Phase of the Contract. For the first Contract Anniversary following the Rider Date, the Rider Fee will be prorated to cover the period between the Rider Date and the first Contract Anniversary after the Rider Date. In the case of a full withdrawal of the Contract Value, the Rider Fee is prorated to cover the period between the Contract Anniversary immediately prior to the withdrawal and the date of the withdrawal. The current Rider Fee for RIG 1 is 0.40% of the Income Base on each Contract Anniversary (0.25% for Contract Owners who added RIG 1 prior to May 1, 2003). The current Rider Fee for the RIG 2 is 0.55% of the Income Base on each Contract Anniversary (0.45% for Contract Owners who added RIG 2 prior to May 1, 2003). These options will terminate and the corresponding Rider Fee will cease on the earliest of the following to occur: .. The date the Contract is terminated; .. If the Contract is not continued in the Accumulation Phase under either the Death of Owner or Death of Annuitant provisions of the Contract. The option will terminate on the date we determine the Death Proceeds; .. The Payout Start Date; or .. For Contract Owners who added a RIG 1 or RIG 2 Option on or after May 1, 2003, if you elect to cancel your RIG 1 or RIG 2 Option during the 60-day period following the next 3rd Contract Anniversary after January 1, 2004 (since we discontinued offering the Trade-In Program as of that date). Otherwise, the options may not be terminated or cancelled. CALCULATION OF INCOME BASE. On the Rider Date, the "RIG 1 Income Base" is equal to the Contract Value. The RIG 1 Income Base, plus purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made after the Rider Date and less RIG 1 withdrawal adjustments for withdrawals made after the Rider Date, will accumulate interest on a daily basis at a rate equivalent to 5% per year (3% in certain states), subject to the "Cap" defined below. This accumulation will continue until the first Contract Anniversary following the 85th birthday of the oldest Contract Owner or oldest Annuitant, whichever occurs first. After the 5% interest accumulation ends (3% in certain states), the RIG 1 Income Base will continue to be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) and reduced by RIG 1 withdrawal adjustments for withdrawals until the option terminates. The "RIG 1 Withdrawal Adjustment" is defined below. The RIG 1 Income Base will not exceed a Cap equal to: .. 200% of the Contract Value as of the Rider Date; plus .. 200% of purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made after the Rider Date, but excluding any purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made in the 12-month period immediately prior to the Payout Start Date; minus .. RIG 1 Withdrawal Adjustments for any withdrawals made after the Rider Date. RIG 1 WITHDRAWAL ADJUSTMENT. Prior to the first Contract Anniversary following the 85th birthday of the oldest Contract Owner or oldest Annuitant, whichever is earlier, the withdrawal adjustment is as follows: .. In each Contract Year, for the portion of withdrawals that do not cumulatively exceed 5% (3% in certain states) of the RIG 1 Income Base as of the beginning of the Contract Year (or as of the Rider Date for the first Contract Year in which RIG 1 is added), the withdrawal adjustment is equal to the amount withdrawn (or portion thereof) multiplied by a discount factor. The discount factor is calculated using a 5% annual interest rate (3% in certain states) and the portion of the Contract Year between the withdrawal date and the end of the Contract Year. This withdrawal adjustment has the effect of reducing the RIG 1 Income Base at the end of the Contract Year by the actual amount of the withdrawal. In other words, for purposes of calculating the RIG 1 Income Base, the withdrawal is treated as if it occurred at the end of the Contract Year. 72 PROSPECTUS .. In each Contract Year, for the portion of withdrawals that cumulatively exceed 5% (3% in certain states) of the RIG 1 Income Base as of the beginning of the Contract Year (or as of the Rider Date for the first Contract Year in which RIG 1 is added), the withdrawal adjustment is equal to the withdrawal amount (or portion thereof), divided by the Contract Value immediately prior to the withdrawal and reduced for the portion of withdrawals that do not cumulatively exceed 5% (3% in certain states), and the result multiplied by the most recently calculated RIG 1 Income Base, reduced for the portion of withdrawals that do not cumulatively exceed 5% (3% in certain states). On or after the first Contract Anniversary following the 85th birthday of the oldest Contract Owner or the Annuitant, all withdrawal adjustments are equal to the withdrawal amount, divided by the Contract Value immediately prior to the withdrawal, and the result multiplied by the most recently calculated RIG 1 Income Base. See Appendix D for numerical examples that illustrate how the RIG 1 Withdrawal Adjustment is applied. The "RIG 2 Income Base" is defined as the greater of "Income Base A" or "Income Base B." "Income Base A" and its corresponding Withdrawal Adjustment are calculated in the same manner as the RIG 1 Income Base and RIG 1 Withdrawal Adjustment. On the Rider Date, "Income Base B" is equal to the Contract Value. After the Rider Date and prior to the Payout Start Date, Income Base B is recalculated each time a purchase payment or withdrawal is made as well as on each Contract Anniversary as follows: .. Each time a purchase payment is made, Income Base B is increased by the amount of the purchase payment (and Credit Enhancement for Allstate Advisor Plus Contracts). .. Each time a withdrawal is made, Income Base B is reduced by a proportional withdrawal adjustment, defined as the withdrawal amount divided by the Contract Value immediately prior to the withdrawal, and the result multiplied by the most recently calculated Income Base B. .. On each Contract Anniversary until the first Contract Anniversary following the 85th birthday of the oldest Contract Owner or oldest Annuitant, whichever occurs first, Income Base B is equal to the greater of the Contract Value on that date or the most recently calculated Income Base B. If no purchase payments or withdrawals are made after the Rider Date, Income Base B will be equal to the greatest of the Contract Value on the Rider Date and the Contract Values on each subsequent Contract Anniversary until the earlier of the Payout Start Date or the Contract Anniversary following the 85th birthday of the oldest Contact Owner or oldest Annuitant, whichever occurs first. CERTAIN EMPLOYEE BENEFIT PLANS The Contracts offered by this prospectus contain income payment tables that provide for different payments to men and women of the same age, except in states that require unisex tables. We reserve the right to use income payment tables that do not distinguish on the basis of sex to the extent permitted by applicable law. In certain employment-related situations, employers are required by law to use the same income payment tables for men and women. Accordingly, if the Contract is used in connection with an employment-related retirement or benefit plan and we do not offer unisex annuity tables in your state, you should consult with legal counsel as to whether the Contract is appropriate. DEATH BENEFITS - -------------------------------------------------------------------------------- DEATH PROCEEDS Under certain conditions, described below, we will pay Death Proceeds for this Contract on the death of the Contract Owner, Annuitant, or Co-Annuitant if the death occurs prior to the Payout Start Date. If the Owner or Annuitant dies after the Payout Start Date, we will pay remaining income payments as described in the "Payout Phase" section of your Contract. See "Income Payments" for more information. We will determine the value of the Death Proceeds as of the end of the Valuation Date during which we receive the first Complete Request for Settlement (the next Valuation Date, if we receive the request after 3:00 p.m. Central Time). In order to be considered a "Complete Request for Settlement," a claim for distribution of the Death Proceeds must include "Due Proof of Death" in any of the following forms of documentation: .. A certified copy of the death certificate; .. A certified copy of a decree of a court of competent jurisdiction as to the finding of death; or .. Any other proof acceptable to us. "Death Proceeds" are determined based on when we receive a Complete Request for Settlement: .. If we receive a Complete Request for Settlement within 180 days of the death of the Contract Owner, Annuitant, or Co-Annuitant, as applicable, the Death Proceeds are equal to the "Death Benefit." .. If we receive a Complete Request for Settlement more than 180 days after the death of the Contract Owner, Annuitant, or Co-Annuitant, as applicable, the Death Proceeds are equal to the greater of the Contract Value or Settlement Value. We reserve the 73 PROSPECTUS right to waive or extend, in a nondiscriminatory manner, the 180-day period in which the Death Proceeds will equal the Death Benefit. Where there are multiple Beneficiaries, we will only value the Death Proceeds at the time the first Beneficiary submits the necessary documentation in good order. Any Death Proceeds amounts attributable to any Beneficiary which remain in the Variable Sub-Accounts are subject to investment risk. DEATH BENEFIT OPTIONS In addition to the ROP Death Benefit included in your Contract, we offer the following death benefit options which may be added to your Contract: .. MAV Death Benefit Option .. Enhanced Beneficiary Protection (Annual Increase) Option .. Earnings Protection Death Benefit Option The SureIncome Plus Option and SureIncome For Life Option also include a death benefit option, the SureIncome Return of Premium Death Benefit ("SureIncome ROP Death Benefit.") The amount of the Death Benefit depends on which death benefit option(s) you select. Not all death benefit options are available in all states. You may select any combination of death benefit options on the Issue Date of your Contract or at a later date, subject to state availability and issue age restrictions. You may not add any of the death benefit option(s) to your Contract after Contract issue without our prior approval if your Contract Value is greater than $1,000,000 at the time you choose to add an option(s). The "Death Benefit" is equal to the Earnings Protection Death Benefit (if selected) plus the greatest of: .. The Contract Value; .. The Settlement Value; .. The ROP Death Benefit; .. The MAV Death Benefit Option (if selected); .. The Enhanced Beneficiary Protection (Annual Increase) Option (if selected); or .. The SureIncome ROP Death Benefit.* The "Settlement Value" is the amount that would be paid in the event of a full withdrawal of the Contract Value. * THE SUREINCOME ROP DEATH BENEFIT UNDER THE SUREINCOME FOR LIFE OPTION IS ONLY INCLUDED IN THE CALCULATION OF THE DEATH BENEFIT UPON THE DEATH OF THE SUREINCOME COVERED LIFE. IF A CONTRACT OWNER, ANNUITANT OR CO-ANNUITANT WHO IS NOT THE SUREINCOME COVERED LIFE DIES, THE SUREINCOME ROP DEATH BENEFIT IS NOT APPLICABLE. The "ROP Death Benefit" is equal to the sum of all purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts), reduced by a proportional withdrawal adjustment for each withdrawal. The withdrawal adjustment is equal to the withdrawal amount divided by the Contract Value immediately prior to the withdrawal, and the result is multiplied by: The sum of all purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made prior to the withdrawal, less any prior withdrawal adjustments. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT OPTION. The "MAV Death Benefit Option" is only available if the oldest Contract Owner and oldest Annuitant are age 79 or younger on the Rider Application Date. There is an additional mortality and expense risk charge for this death benefit option, currently equal to 0.20% (0.15% for Contract Owners who added this option prior to May 1, 2003). We may change what we charge for this death benefit option, but it will never exceed 0.30%. Once added to your Contract, we guarantee that we will not increase the mortality and expense risk charge you pay for this death benefit option. On the date we issue the rider for this benefit ("Rider Date"), the MAV Death Benefit is equal to the Contract Value. After the Rider Date and prior to the date we determine the Death Proceeds (see "Death Proceeds" on page 73), the MAV Death Benefit is recalculated each time a purchase payment or withdrawal is made as well as on each Contract Anniversary as follows: .. Each time a purchase payment is made, the MAV Death Benefit is increased by the amount of the purchase payment (and Credit Enhancement for Allstate Advisor Plus Contracts). .. Each time a withdrawal is made, the MAV Death Benefit is reduced by a proportional withdrawal adjustment, defined as the withdrawal amount divided by the Contract Value immediately prior to the withdrawal, and the result multiplied by the most recently calculated MAV Death Benefit. .. On each Contract Anniversary until the first Contract Anniversary following the 80th birthday of the oldest Contract Owner or oldest Annuitant, whichever occurs first, the MAV Death Benefit is recalculated as the greater of the Contract Value on that date or the most recently calculated MAV Death Benefit. If no purchase payments or withdrawals are made after the Rider Date, the MAV Death Benefit will be equal to the greatest of the Contract Value on the Rider Date and the Contract Values on each subsequent Contract Anniversary after the Rider Date, but before the date we determine the Death Proceeds. If, upon death of the Contract Owner, the Contract is continued under Option D as described on page 77, and if the oldest New Contract Owner and the oldest Annuitant are age 80 or younger on the date we determine the Death Proceeds, then the MAV Death Benefit Option will continue. The MAV Death Benefit will continue to be recalculated for purchase payments (and Credit Enhancements for 74 PROSPECTUS Allstate Advisor Plus Contracts), withdrawals, and on each Contract Anniversary after the date we determine the Death Proceeds until the earlier of: .. The first Contract Anniversary following the 80th birthday of either the oldest New Contract Owner or the oldest Annuitant, whichever is earlier. (After the 80th birthday of either the oldest New Contract Owner or the oldest Annuitant, whichever is earlier, the MAV Death Benefit will be recalculated only for purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) and withdrawals); or .. The date we next determine the Death Proceeds. ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION. The Enhanced Beneficiary Protection (Annual Increase) Option is only available if the oldest Contract Owner and oldest Annuitant are age 79 or younger on the Rider Application Date. There is an additional mortality and expense risk charge for this death benefit option, currently equal to 0.30% (0.15% for Contract Owners who added this option prior to May 1, 2003). We may change what we charge for this death benefit option, but it will never exceed 0.30%. Once added to your Contract, we guarantee that we will not increase the mortality and expense risk charge you pay for this death benefit option. On the date we issue the rider for this benefit ("Rider Date"), the Enhanced Beneficiary Protection (Annual Increase) Benefit is equal to the Contract Value. The Enhanced Beneficiary Protection (Annual Increase) Benefit, plus purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made after the Rider Date and less withdrawal adjustments for withdrawals made after the Rider Date, will accumulate interest on a daily basis at a rate equivalent to 5% per year (3% in certain states), subject to the "Cap" defined below. This accumulation will continue until the earlier of: (a) the first Contract Anniversary following the 80th birthday of the oldest Contract Owner or oldest Annuitant, whichever occurs first; or (b) the date we determine the Death Proceeds. After the 5% interest accumulation ends (3% in certain states), the Enhanced Beneficiary Protection (Annual Increase) Benefit will continue to be increased by purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) and reduced by withdrawal adjustments for withdrawals until the death benefit option terminates. The withdrawal adjustment is a proportional adjustment, defined as the withdrawal amount divided by the Contract Value immediately prior to the withdrawal, and the result multiplied by the amount of the Enhanced Beneficiary Protection (Annual Increase) Benefit immediately prior to the withdrawal. The Enhanced Beneficiary Protection (Annual Increase) Benefit Cap is equal to: .. 200% of the Contract Value as of the Rider Date; plus .. 200% of purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made after the Rider Date, but excluding any purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made in the 12-month period immediately prior to the death of the Contract Owner or the Annuitant; minus .. Withdrawal adjustments for any withdrawals made after the Rider Date. Refer to Appendix E for withdrawal adjustment examples. If, upon death of the Contract Owner, the Contract is continued under Option D as described on page 76, and if the oldest New Contract Owner and the oldest Annuitant are age 80 or younger on the date we determine the Death Proceeds, then the Enhanced Beneficiary Protection (Annual Increase) Option will continue. The amount of the Enhanced Beneficiary Protection (Annual Increase) Benefit as of the date we determine the Death Proceeds, plus subsequent purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts), less withdrawal adjustments for any subsequent withdrawals, will accumulate daily at a rate equivalent to 5% per year (3% in certain states) from the date we determine the Death Proceeds, until the earlier of: .. The first Contract Anniversary following the 80th birthday of either the oldest New Contract Owner or the oldest Annuitant, whichever is earlier. (After the 80th birthday of either the oldest New Owner or the oldest Annuitant, whichever is earlier, the Enhanced Beneficiary Protection (Annual Increase) Benefit will be recalculated only for purchase payments and withdrawals (and Credit Enhancements for Allstate Advisor Plus Contracts); or .. The date we next determine the Death Proceeds. EARNINGS PROTECTION DEATH BENEFIT OPTION. The "Earnings Protection Death Benefit Option" is only available if the oldest Contract Owner and oldest Annuitant are age 79 or younger on the Rider Application Date. There is an additional mortality and expense risk charge for this death benefit option, currently equal to: .. 0.25%, if the oldest Contract Owner and oldest Annuitant are age 70 or younger on the Rider Application Date; and .. 0.40%, if the oldest Contract Owner or oldest Annuitant is over age 70 and all are age 79 or younger on the Rider Application Date. We may change what we charge for this death benefit option, but it will never exceed 0.35% for issue ages 0-70 and 0.50% for issue ages 71-79. Once added to your Contract, we guarantee that we will not increase the mortality and expense risk charge you pay for this death benefit option. However, if your spouse elects to continue the Contract in the event of your death and if 75 PROSPECTUS he or she elects to continue the Earnings Protection Death Benefit Option, the mortality and expense risk charge for the death benefit option will be based on the ages of the oldest new Contract Owner and the oldest Annuitant at the time the Contract is continued. If the oldest Contract Owner and oldest Annuitant are age 70 or younger on the Rider Application Date, the Earnings Protection Death Benefit is equal to the lesser of: .. 100% of "In-Force Premium" (excluding purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made after the date we issue the rider for this benefit ("Rider Date") and during the twelve-month period immediately prior to the death of the Contract Owner or Annuitant); or .. 40% of "In-Force Earnings" calculated as of the date we determine the Death Proceeds. If the oldest Contract Owner or oldest Annuitant is over age 70 and all are age 79 or younger on the Rider Application Date, the Earnings Protection Death Benefit is equal to the lesser of: .. 50% of "In-Force Premium" (excluding purchase payments (and Credit Enhancements for Allstate Advisor Plus Contracts) made after the Rider Date and during the twelve-month period immediately prior to the death of the Contract Owner or Annuitant); or .. 25% of "In-Force Earnings" calculated as of the date we determine the Death Proceeds. In-Force Earnings are equal to the current Contract Value less In-Force Premium. If this quantity is negative, then In-Force Earnings are equal to zero. In-Force Premium is equal to the Contract Value on the Rider Date, plus the sum of all purchase payments made after the Rider Date, less the sum of all "Excess-of-Earnings Withdrawals" made after the Rider Date. An Excess-of-Earnings Withdrawal is equal to the excess, if any, of the amount of the withdrawal over the amount of the In-Force Earnings immediately prior to the withdrawal. Refer to Appendix F for numerical examples that illustrate how the Earnings Protection Death Benefit Option is calculated. If, upon death of the Contract Owner, the Contract is continued under Option D as described on page 77 below, and if the oldest new Owner and the oldest Annuitant are younger than age 80 on the date we determine the Death Proceeds, then this death benefit option will continue unless the New Contract Owner elects to terminate the death benefit option. If the death benefit option is continued, the following will apply as of the date we determine the Death Proceeds upon continuation: .. The Rider Date will be changed to the date we determine the Death Proceeds; .. The In-Force Premium is equal to the Contract Value as of the new Rider Date plus all purchase payments made after the Rider Date, less the sum of all the Excess-of-Earnings Withdrawals made after the Rider Date; .. The Earnings Protection Death Benefit after the new Rider Date will be determined as described above, but using the ages of the oldest new Contract Owner and the oldest Annuitant as of the new Rider Date. .. The mortality and expense risk charge, for this rider, will be determined as described above, but using the ages of the oldest new Contract Owner and the oldest Annuitant as of the new Rider Date. If either the Contract Owner's or the Annuitant's age is misstated, the Earnings Protection Death Benefit and the mortality and expense risk charge for this death benefit option will be calculated according to the corrected age as of the Rider Date. Your Contract Value will be adjusted to reflect the mortality and expense risk charge for this death benefit option that should have been assessed based on the corrected age. ALL OPTIONS. WE RESERVE THE RIGHT TO IMPOSE LIMITATIONS ON THE INVESTMENT ALTERNATIVES IN WHICH YOU MAY INVEST AS A CONDITION OF THESE OPTIONS. THESE RESTRICTIONS MAY INCLUDE, BUT ARE NOT LIMITED TO, MAXIMUM INVESTMENT LIMITS ON CERTAIN INVESTMENT ALTERNATIVES, EXCLUSION OF CERTAIN INVESTMENT ALTERNATIVES, REQUIRED MINIMUM ALLOCATIONS TO CERTAIN VARIABLE SUB-ACCOUNTS AND/OR THE REQUIRED USE OF AUTOMATIC PORTFOLIO REBALANCING. CURRENTLY, NO SUCH RESTRICTIONS ARE BEING IMPOSED. These death benefit options will terminate and the corresponding Rider Fee will cease on the earliest of the following to occur: .. the date the Contract is terminated; .. if, upon the death of the Contract Owner, the Contract is continued under Option D as described in the Death of Owner section on page 77, and either the oldest New Owner or the oldest Annuitant is older than age 80 (age 80 or older for the Earnings Protection Death Benefit Option) on the date we determine the Death Proceeds. The death benefit option will terminate on the date we determine the Death Proceeds; .. if the Contract is not continued in the Accumulation Phase under either the Death of Owner or Death of Annuitant provisions of the Contract. The death benefit option will terminate on the date we determine the Death Proceeds; .. on the date the Contract Owner (if the current Contract Owner is a living person) is changed for any reason other than death unless the New Contract Owner is a trust and the Annuitant is the current Contract Owner; 76 PROSPECTUS .. on the date the Contract Owner (if the current Contract Owner is a non-living person) is changed for any reason unless the New Contract Owner is a non-living person or is the current Annuitant; or .. the Payout Start Date. Notwithstanding the preceding, in the event of the Contract Owner's death, if the Contract Owner's spouse elects to continue the Contract (as permitted in the Death of Owner provision below) he or she may terminate the Earnings Protection Death Benefit at that time. DEATH BENEFIT PAYMENTS DEATH OF CONTRACT OWNER If a Contract Owner dies prior to the Payout Start Date, then the surviving Contract Owners will be "New Contract Owners". If there are no surviving Contract Owners, then subject to any restrictions previously placed upon them, the Beneficiaries will be the New Contract Owners. If there is more than one New Contract Owner taking a share of the Death Proceeds, each New Contract Owner will be treated as a separate and independent Contract Owner of his or her respective share of the Death Proceeds. Each New Contract Owner will exercise all rights related to his or her share of the Death Proceeds, including the sole right to elect one of the Option(s) below, subject to any restrictions previously placed upon the New Contract Owner. Each New Contract Owner may designate a Beneficiary(ies) for his or her respective share, but that designated Beneficiary(ies) will be restricted to the Option chosen by the original New Contract Owner. The Options available to the New Contract Owner will be determined by the applicable following Category in which the New Contract Owner is defined. An Option will be deemed to have been chosen on the day we receive written notification in a form satisfactory to us. New Contract Owner Categories CATEGORY 1. If your spouse (or Annuitant's spouse in the case of a grantor trust-owned Contract) is the sole New Contract Owner of the entire Contract, your spouse must choose from among the death settlement Options A, B, C, D, or E described below. If he or she does not choose one of these Options, then Option D will apply. CATEGORY 2. If the New Contract Owner is a living person who is not your spouse (or Annuitant's spouse in the case of a grantor trust-owned Contract), or there is more than one New Contract Owner, all of whom are living persons, each New Contract Owner must choose from among the death settlement Options A, B, C, or E described below. If a New Contract Owner does not choose one of these Options, then Option C will apply for that New Contract Owner. CATEGORY 3. If there are one or more New Contract Owner(s) and at least one of the New Contract Owners is a non-living person such as a corporation or a trust, all New Contract Owners are considered to be non-living persons for purposes of the death settlement options. Each New Contract Owner must choose death settlement Option A or C described below. If a New Contract Owner does not choose one of these Options, then Option C will apply for that New Contract Owner. The death settlement options we currently offer are: OPTION A. The New Contract Owner may elect to receive the Death Proceeds in a lump sum. OPTION B. The New Contract Owner may elect to apply the Death Proceeds to one of the Income Plans described above. Such income payments must begin within one year of the date of death and must be payable: .. Over the life of the New Contract Owner; or .. For a guaranteed payment period of at least 5 years (60 months), but not to exceed the life expectancy of the New Contract Owner; or .. Over the life of the New Contract Owner with a guaranteed payment period of at least 5 years (60 months), but not to exceed the life expectancy of the New Contract Owner. OPTION C. The New Contract Owner may elect to receive the Contract Value payable within 5 years of the date of death. The Contract Value, as of the date we receive the first Complete Request for Settlement, will be reset to equal the Death Proceeds as of that date. Any excess amount of the Death Proceeds over the Contract Value on that date will be allocated to the Putnam VT Money Market - Class IB Sub-Account unless the New Contract Owner provides other allocation instructions. The New Contract Owner may not make any additional purchase payments under this option. Withdrawal charges will be waived for any withdrawals made during the 5-year period after the date of death; however, amounts withdrawn may be subject to Market Value Adjustments. The New Contract Owner may exercise all rights set forth in the Transfers provision. If the New Contract Owner dies before the Contract Value is completely withdrawn, the New Contract Owner's Beneficiary(ies) will receive the greater of the remaining Settlement Value or the remaining Contract Value within 5 years of the date of the original Contract Owner's death. OPTION D. The New Contract Owner may elect to continue the Contract in the Accumulation Phase. If the Contract Owner was also the Annuitant, then the New Contract Owner will be the new Annuitant. This Option may only be exercised once per Contract. The Contract Value, as of the date we receive the first Complete Request for Settlement, will be reset to equal the Death Proceeds as of that date. Unless otherwise instructed by the continuing spouse, the excess, if any, of the Death Proceeds over the Contract Value will be allocated to the Sub-Accounts of the Variable Account. This excess will be allocated in proportion to your Contract Value in those Sub-Accounts as of the end of the Valuation Date that 77 PROSPECTUS we receive the complete request for settlement except that any portion of this excess attributable to the Fixed Account Options will be allocated to the Putnam VT Money Market - Class IB Sub-Account. Within 30 days after the date we determine the Death Proceeds, the New Contract Owner may make a one-time transfer of all or a portion of the excess of the Death Proceeds, if any, into any combination of Variable Sub-Accounts, the Standard Fixed Account and the Market Value Adjusted Fixed Account without incurring a transfer fee, provided the investment alternative is available with the Contract at that time. Any such transfer does not count as one of the free transfers allowed each Contract Year and is subject to any minimum allocation amount specified in this Contract. The New Contract Owner may make a single withdrawal of any amount within one year of the date of your death without incurring a Withdrawal Charge; however, the amount withdrawn may be subject to a Market Value Adjustment and a 10% tax penalty if the New Contract Owner is under age 59 1/2. OPTION E. For Nonqualified Contracts, the New Contract Owner may elect to make withdrawals at least annually of amounts equal to the "Annual Required Distribution" calculated for each calendar year. The first such withdrawal must occur within: .. One year of the date of death; .. The same calendar year as the date we receive the first Complete Request for Settlement; and .. One withdrawal frequency. The New Contract Owner must select the withdrawal frequency (monthly, quarterly, semi-annual, or annual). Once this option is elected and frequency of withdrawals is chosen, they cannot be changed by the New Contract Owner and become irrevocable. In the calendar year in which the Death Proceeds are determined, the Annual Required Distribution is equal to the Contract Value on the date of the first distribution divided by the "Life Expectancy" of the New Contract Owner and the result multiplied by a fraction that represents the portion of the calendar year remaining after the date of the first distribution. (The Contract Value, as of the date we receive the Complete Request for Settlement, will be reset to equal the Death Proceeds as of that date. The Contract Value on the date of the first distribution may be more or less than the Contract Value as of the date we receive the Complete Request for Settlement.) The Life Expectancy in that calendar year is equal to the life expectancy value from IRS Tables based on the age of the New Contract Owner as of his or her birthday in the same calendar year. In any subsequent calendar year, the Annual Required Distribution is equal to the Contract Value as of December 31 of the prior year divided by the remaining Life Expectancy of the New Contract Owner. In each calendar year after the calendar year in which the first distribution occurred, the Life Expectancy of the New Contract Owner is the Life Expectancy calculated in the previous calendar year minus one (1) year. If the Life Expectancy is less than one (1), the Annual Required Distribution is equal to the Contract Value. If the New Contract Owner dies before the Contract Value is completely withdrawn, the scheduled withdrawals will continue to be paid to the New Contract Owner's Beneficiary(ies). The Contract Value invested in the Variable Sub-Accounts will be subject to investment risk until it is withdrawn. We reserve the right to offer additional death settlement options. DEATH OF ANNUITANT If the Annuitant dies prior to the Payout Start Date, then the surviving Contract Owners will have the Options available to the New Contract Owner, determined by the applicable following category in which the New Contract Owner is defined, unless: .. The Annuitant was also the Contract Owner, in which case the Death of Owner provisions above apply; or .. The Contract Owner is a grantor trust not established by a business, in which case the Beneficiary(ies) will be deemed the New Contract Owners and the Death of Contract Owner provisions above will apply. Surviving Contract Owner Categories CATEGORY 1. If the Contract Owner is a living person, prior to the Annuitant's death, the Contract Owner must choose from among the death settlement Options A, B, or D described below. If the Contract Owner does not choose one of these Options, then Option D will apply. CATEGORY 2. If the Contract Owner is a non-living person such as a corporation or a trust, the Contract Owner must choose from death settlement Options A or C described below. If the Contract Owner does not choose one of these Options, then Option C will apply. The death settlement options we currently offer are: OPTION A. The Contract Owner may elect to receive the Death Proceeds in a lump sum. OPTION B. The Contract Owner may elect to apply the Death Proceeds to one of the Income Plans described above. Such income payments must begin within one year of the date of death. OPTION C. The Contract Owner may elect to receive the Contract Value payable within 5 years of the date of death. The Contract Value, as of the date we receive the first Complete Request for Settlement, will be reset to equal the Death Proceeds as of that date. Any excess amount of the Death Proceeds over the Contract Value on that date will be allocated to the Putnam VT Money Market - - Class IB Sub-Account unless the Contract Owner provides other allocation instructions. 78 PROSPECTUS The Contract Owner may not make any additional purchase payments under this option. Withdrawal charges will be waived for any withdrawals made during the 5-year period after the date of death; however, amounts withdrawn may be subject to Market Value Adjustments. The Contract Owner may exercise all rights set forth in the Transfers provision. OPTION D. The Contract Owner may elect to continue the Contract and the youngest Contract Owner will become the new Annuitant. The Contract Value of the continued Contract will not be adjusted to equal the Death Proceeds. We reserve the right to offer additional death settlement options. QUALIFIED CONTRACTS The death settlement options for Qualified Contracts, including IRAs, may be different to conform with the individual tax requirements of each type of Qualified Contract. Please refer to your Endorsement for IRAs or 403(b) plans, if applicable, for additional information on your death settlement options. In the case of certain Qualified Plans, the terms of the Qualified Plan Endorsement and the plans may govern the right to benefits, regardless of the terms of the Contract. SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION AND DEATH OF CO-ANNUITANT We offer a Spousal Protection Benefit (Co-Annuitant) Option that may be added to your Contract subject to the following conditions: .. The individually owned Contract must be either a traditional, Roth, or Simplified Employee Pension IRA. .. The Contract Owner's spouse must be the sole Primary Beneficiary of the Contract and will be the named Co-Annuitant. .. The Contract Owner must be age 90 or younger on the Rider Application Date; and the Co-Annuitant must be age 79 or younger on the Rider Application Date. .. On or after May 1, 2005, the Option may be added only when we issue the Contract or within 6 months of the Contract Owner's marriage. You may not add the Option to your Contract without our prior approval if your Contract Value is greater than $1,000,000 at the time you choose to add the Option. We may require proof of marriage in a form satisfactory to us. Under the Spousal Protection Benefit Option, the Co-Annuitant will be considered to be an Annuitant under the Contract during the Accumulation Phase except that the "Death of Annuitant" provision does not apply on the death of the Co-Annuitant, and the latest Payout Start Date will be based solely on the Contract Owner's age. You may change the Co-Annuitant to a new spouse only if you provide proof of remarriage in a form satisfactory to us. Once we accept a change, the change will take effect on the date you signed the request. Each change is subject to any payment we make or other action we take before we accept it. At any time, there may be only one Co-Annuitant under your Contract. There is an annual Rider Fee of 0.10% of the Contract Value for new Options added on or after January 1, 2005. For Options added prior to this date, there is no charge for this Option. We reserve the right to assess an annual Rider Fee not to exceed 0.15% for Options added in the future. Once this Option is added to your Contract, we guarantee that we will not increase what we charge you for this Option. For Contracts purchased on or after January 1, 2005, we may discontinue offering the Spousal Protection Benefit (Co-Annuitant) Option at any time prior to the time you elect to receive it. The option will terminate upon the date termination is accepted by us or will terminate on the earliest of the following occurrences: .. upon the death of the Co-Annuitant (as of the date we determine the Death Proceeds); .. upon the death of the Contract Owner (as of the date we determine the Death Proceeds); .. on the date the Contract is terminated; .. on the Payout Start Date; or .. on the date you change the beneficiary of the Contract and the change is accepted by us; .. for options added on or after January 1, 2005, the Owner may terminate the option upon the divorce of the Owner and the Co-Annuitant by providing written notice and proof of divorce in a form satisfactory to us; .. for options added prior to January 1, 2005, the Owner may terminate this option at anytime by written notice in a form satisfactory to us. Once terminated, a new Spousal Protection Benefit (Co-Annuitant) Option cannot be added to the Contract unless the last Option attached to the Contract was terminated due to divorce or a change of beneficiary. DEATH OF CO-ANNUITANT. If the Co-Annuitant dies prior to the Payout Start Date, subject to the following conditions, the Contract will be continued according to Option D under the "Death of Owner" provision of your Contract: .. The Co-Annuitant must have been your legal spouse on the date of his or her death; and .. Option D of the "Death of Owner" provision of your Contract has not previously been exercised. The Contract may only be continued once under Option D under the "Death of Owner" provision. For a description of Option D, see the "Death of Owner" section of this prospectus. 79 PROSPECTUS SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION FOR CUSTODIAL INDIVIDUAL RETIREMENT ACCOUNTS AND DEATH OF CO-ANNUITANT We offer a Spousal Protection Benefit (Co-Annuitant) Option for certain Custodial Individual Retirement Accounts established under Code Section 408(a) that may be added to your Contract. CSP may not be available in all states. CSP is subject to the following conditions ("CSP Conditions"): .. The beneficially owned Contract must be a Custodial traditional IRA, Custodial Roth IRA, or a Custodial Simplified Employee Pension IRA. .. The Annuitant must be the beneficial owner of the Custodial traditional IRA, Custodial Roth IRA, or Custodial Simplified Employee Pension IRA. .. The Co-Annuitant must be the legal spouse of the Annuitant. Only one Co-Annuitant may be named. .. The Co-Annuitant must be the sole beneficiary of the Custodial traditional IRA, Custodial Roth IRA, or the Custodial Simplified Employee Pension IRA. .. The Annuitant must be age 90 or younger on the CSP Application Date. .. The Co-Annuitant must be age 79 or younger on the CSP Application Date. .. On or after May 1, 2005, the CSP may be added only when we issue the Contract or within 6 months of the beneficial owner's marriage. You may not add the CSP to your Contract without our prior approval if your Contract Value is greater than $1,000,000 at the time you choose to add the CSP. We may require proof of marriage in a form satisfactory to us. .. We have made no payments under any Income Plan. .. There is an annual Rider Fee of 0.10% of the Contract Value for new Options added on or after January 1, 2005. For Options added prior to this date, there is no charge for this Option. We reserve the right to increase the annual Rider Fee to up to 0.15% of the Contract Value. Under CSP, the Co-Annuitant will be considered to be an Annuitant under the Contract during the Accumulation Phase except that: .. The Co-Annuitant will not be considered to be an Annuitant for purposes of determining the Payout Start Date. .. The "Death of Annuitant" provision of the Contract does not apply on the death of the Co-Annuitant. .. The Co-Annuitant is not considered the beneficial owner of the Custodial traditional IRA, Custodial Roth IRA, or the Custodial Simplified Employee Pension IRA. You may change the Co-Annuitant to a new spouse only if you provide proof of remarriage in a form satisfactory to us. Once we accept a change, the change will take effect on the date you signed the request. Each change is subject to any payment we make or other action we take before we accept it. At any time, there may only be one Co-Annuitant under your Contract. For Spousal Protection Benefit (Co-Annuitant) Options for Custodial Individual Retirement Accounts added on or after January 1, 2005, there is an annual Rider Fee of 0.10% of the Contract Value for this Option. For Options added prior to this date, there is no charge for this Option. We reserve the right to assess an annual Rider Fee not to exceed 0.15% for Options added in the future. Once this Option is added to your Contract, we guarantee that we will not increase what we charge you for this Option. For Contracts issued on or after January 1, 2005, we may discontinue offering the Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts at any time to new Contract Owners and to existing Contract Owners who did not elect the Option prior to the date of discontinuance. The Owner may terminate CSP upon the divorce of the Annuitant and the Co-Annuitant by providing written notice and proof of divorce in a form satisfactory to us. The Owner may also terminate CSP upon a change in the beneficiary of the IRA by providing written notice and proof of the change in a form satisfactory to us. CSP will terminate upon the date termination is accepted by us or on the earliest of the following occurrences: .. On the date CSP is terminated as described above; or .. Upon the death of the Annuitant; or .. Upon the death of the Co-Annuitant; or .. On the date the Contract is terminated; or .. On the Payout Start Date. Once terminated, a new CSP cannot be added to the Contract unless the last option attached to the Contract was terminated due to divorce or change of beneficiary of the IRA. DEATH OF CO-ANNUITANT. This section applies if: .. The CSP Conditions are met. . The Annuitant was, at the time of the Co-Annuitant's death, the beneficial owner of the Custodial traditional IRA, Custodial Roth IRA, or Custodial Simplified Employee Pension IRA. . We have received proof satisfactory to us that the Co-Annuitant has died. . The Co-Annuitant was, at the time of the Co-Annuitant's death, the sole beneficiary of the Custodial traditional IRA, Custodial Roth 80 PROSPECTUS IRA, or Custodial Simplified Employee Pension IRA, and . the Co-Annuitant was, at the time of the Co-Annuitant's death, the legal spouse of the Annuitant. If this section applies and if the Co-Annuitant dies prior to the Payout Start Date, then, subject to the following conditions, the Contract may be continued according to Option D under the "Death of Owner" provisions under the same terms and conditions that would apply if the Co-Annuitant were the Owner of the Contract before death and the sole new Owner of the Contract were the Annuitant provided that: .. The Co-Annuitant was the legal spouse of the Annuitant on the date of Annuitant's death. .. The Owner does not thereafter name a new Co-Annuitant; and .. The Owner of the Custodial traditional IRA, Custodial Roth IRA, or Custodial Simplified Employee Pension IRA remains the Custodian; and .. The Contract may only be continued once. MORE INFORMATION - -------------------------------------------------------------------------------- ALLSTATE Allstate Life is the issuer of the Contract. Allstate Life was organized in 1957 as a stock life insurance company under the laws of the State of Illinois. Allstate Life is a wholly owned subsidiary of Allstate Insurance Company, a stock property-liability insurance company organized under the laws of the State of Illinois. All of the capital stock issued and outstanding of Allstate Insurance Company is owned by Allstate Insurance Holdings, LLC, which is wholly owned by The Allstate Corporation. Allstate Life is licensed to operate in the District of Columbia, Puerto Rico, and all jurisdictions except the State of New York. We intend to offer the Contract in those jurisdictions in which we are licensed. Our home office is located at 3100 Sanders Road, Northbrook, Illinois, 60062. Effective June 1, 2006, Allstate Life entered into an agreement ("the Agreement") with Prudential Financial, Inc. and its subsidiary, The Prudential Insurance Company of America ("PICA") pursuant to which Allstate Life sold, through a combination of coinsurance and modified coinsurance reinsurance, substantially all of its variable annuity business. Pursuant to the Agreement Allstate Life and PICA also entered into an administrative services agreement which provides that PICA or an affiliate administer the Variable Account and the Contracts. The benefits and provisions of the Contracts have not been changed by these transactions and agreements. None of the transactions or agreements have changed the fact that we are primarily liable to you under your Contract. VARIABLE ACCOUNT Allstate Life established the Allstate Financial Advisors Separate Account I ("Variable Account") in 1999. The Contracts were previously issued through Allstate Life Insurance Company Separate Account A. Effective May 1, 2004, the Variable Account combined with Allstate Life Insurance Company Separate Account A and consolidated duplicative Variable Sub-Accounts that invest in the same Portfolio (the "Consolidation"). The Accumulation Unit Values for the Variable Sub-Accounts in which you invest did not change as a result of the Consolidation, and your Contract Value immediately after the Consolidation was the same as the value immediately before the Consolidation. We have registered the Variable Account with the SEC as a unit investment trust. The SEC does not supervise the management of the Variable Account or Allstate Life. We own the assets of the Variable Account. The Variable Account is a segregated asset account under Illinois law. That means we account for the Variable Account's income, gains and losses separately from the results of our other operations. It also means that only the assets of the Variable Account that are in excess of the reserves and other Contract liabilities with respect to the Variable Account are subject to liabilities relating to our other operations. Our obligations arising under the Contracts are general corporate obligations of Allstate Life. The Variable Account consists of multiple Variable Sub-Accounts, each of which invests in a corresponding Portfolio. We may add new Variable Sub-Accounts or eliminate one or more of them, if we believe marketing, tax, or investment conditions so warrant. We do not guarantee the investment performance of the Variable Account, its Sub-Accounts or the Portfolios. We may use the Variable Account to fund our other annuity contracts. We will account separately for each type of annuity contract funded by the Variable Account. THE PORTFOLIOS DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. We automatically reinvest all dividends and capital gains distributions from the Portfolios in shares of the distributing Portfolios at their net asset value. VOTING PRIVILEGES. As a general matter, you do not have a direct right to vote the shares of the Portfolios held by the Variable Sub-Accounts to which you have allocated your Contract Value. Under current law, however, you are entitled to give us instructions on how to vote those shares on certain matters. Based on our present view of the law, we will vote the shares of the Portfolios that we hold directly or indirectly through the Variable Account in accordance with instructions that we 81 PROSPECTUS receive from Contract Owners entitled to give such instructions. As a general rule, before the Payout Start Date, the Contract Owner or anyone with a voting interest is the person entitled to give voting instructions. The number of shares that a person has a right to instruct will be determined by dividing the Contract Value allocated to the applicable Variable Sub-Account by the net asset value per share of the corresponding Portfolio as of the record date of the meeting. After the Payout Start Date the person receiving income payments has the voting interest. The payee's number of votes will be determined by dividing the reserve for such Contract allocated to the applicable Sub-Account by the net asset value per share of the corresponding Portfolio. The votes decrease as income payments are made and as the reserves for the Contract decrease. We will vote shares attributable to Contracts for which we have not received instructions, as well as shares attributable to us, in the same proportion as we vote shares for which we have received instructions, unless we determine that we may vote such shares in our own discretion. We will apply voting instructions to abstain on any item to be voted upon on a pro-rata basis to reduce the votes eligible to be cast. We reserve the right to vote Portfolio shares as we see fit without regard to voting instructions to the extent permitted by law. If we disregard voting instructions, we will include a summary of that action and our reasons for that action in the next semi-annual financial report we send to you. CHANGES IN PORTFOLIOS. If the shares of any of the Portfolios are no longer available for investment by the Variable Account or if, in our judgment, further investment in such shares is no longer desirable in view of the purposes of the Contract, we may eliminate that Portfolio and substitute shares of another eligible investment fund. Any substitution of securities will comply with the requirements of the Investment Company Act of 1940. We also may add new Variable Sub-Accounts that invest in additional underlying funds. We will notify you in advance of any change. CONFLICTS OF INTEREST. Certain of the Portfolios sell their shares to separate accounts underlying both variable life insurance and variable annuity contracts. It is conceivable that in the future it may be unfavorable for variable life insurance separate accounts and variable annuity separate accounts to invest in the same Portfolio. The board of directors/trustees of these Portfolios monitors for possible conflicts among separate accounts buying shares of the Portfolios. Conflicts could develop for a variety of reasons. For example, differences in treatment under tax and other laws or the failure by a separate account to comply with such laws could cause a conflict. To eliminate a conflict, the Portfolio's board of directors/trustees may require a separate account to withdraw its participation in a Portfolio. A Portfolio's net asset value could decrease if it had to sell investment securities to pay redemption proceeds to a separate account withdrawing because of a conflict. THE CONTRACT DISTRIBUTION. Allstate Distributors, L.L.C., located at 3100 Sanders Road, Northbrook, IL 60062, is the principal underwriter and distributor of the Contract. Allstate Distributors is a wholly owned subsidiary of Allstate Life. Allstate Distributors is registered as a broker-dealer under the Securities Exchange Act of 1934, as amended, and is a member of the Financial Industry Regulatory Authority ("FINRA"). Allstate Distributors does not sell Contracts directly to purchasers. Allstate Distributors enters into selling agreements with affiliated and unaffiliated broker-dealers and banks to sell the Contracts through their registered representatives. The broker-dealers are registered with the SEC and are FINRA member firms. Their registered representatives are also licensed as insurance agents by applicable state insurance authorities and appointed as agents of Allstate Life in order to sell the Contracts. Contracts also may be sold by representatives or employees of banks that may be acting as broker-dealers without separate registration under the Exchange Act, pursuant to legal and regulatory exceptions. We will pay commissions to broker-dealers and banks which sell the Contracts. Commissions paid vary, but we may pay up to a maximum sales commission of 7.5% of total purchase payments. In addition, we may pay ongoing annual compensation of up to 1.25% of Contract Value. Individual representatives receive a portion of compensation paid to the broker-dealer or bank with which they are associated in accordance with the broker dealer's or bank's practices. We estimate that commissions and annual compensation, when combined, will not exceed 8.5% of total purchase payments. However, commissions and annual compensation could exceed that amount because ongoing annual compensation is related to Contract Value and the number of years the Contract is held. From time to time, we pay asset-based compensation and/or marketing allowances to banks and broker-dealers. These payments vary among individual banks and broker dealers, and the asset-based payments may be up to 0.25% of Contract Value annually. These payments are intended to contribute to the promotion and marketing of the Contracts, and they vary among banks and broker-dealers. The marketing and distribution support services include but are not limited to: (1) placement of the Contracts on a list of preferred or recommended products in the bank's or broker-dealer's distribution system; (2) sales promotions with regard to the Contracts; (3) participation in sales conferences; and (4) helping to defray the costs of sales conferences and educational seminars for the bank or broker-dealer's registered representatives. A list of broker-dealers and banks that Allstate Distributors paid 82 PROSPECTUS pursuant to such arrangements is provided in the Statement of Additional Information, which is available upon request. For a free copy, please write or call us at the address or telephone number listed on the front page of this prospectus, or go to the SEC's Web site (http://www.sec.gov). To the extent permitted by FINRA rules and other applicable laws and regulations, we may pay or allow other promotional incentives or payments in the form of cash or non-cash compensation. We may not offer the arrangements to all broker-dealers and banks and the terms of the arrangement may differ among broker-dealers and banks. Individual registered representatives, broker-dealers, banks, and branch managers within some broker-dealers and banks participating in one of these compensation arrangements may receive greater compensation for selling the contract than for selling a different contact that is not eligible for the compensation arrangement. While we take the compensation into account when establishing contract charges, any such compensation will be paid by us or Allstate Distributors and will not result in any additional charge to you. Your registered representative can provide you with more information about the compensation arrangements that apply to the sale of the contract. Allstate Life does not pay Allstate Distributors a commission for distribution of the Contracts. Allstate Distributors compensates its representatives who act as wholesalers, and their sales management personnel, for Contract sales. This compensation is based on a percentage of premium payments and/or a percentage of Contract Values. The underwriting agreement with Allstate Distributors provides that we will reimburse Allstate Distributors for expenses incurred in distributing the Contracts, including any liability to Contract Owners arising out of services rendered or Contracts issued. For Allstate Advisor Contracts issued to employees of Allstate Life and certain other eligible organizations, and in lieu of Allstate Life paying any commissions on sales of those Contracts, the Contract Owner will receive a credit of 6% of the amount of each purchase payment that will be applied to each purchase payment. Allstate Life will allocate this credit in the same allocation as your most recent instruction. If you exercise your Right to Cancel your Contract as described in this prospectus, we will return to you the amount you would have received had there been no credit. Unless we are required by law to return your purchase payments, this amount also will include any charges deducted that reduced your Contract Value prior to cancellation, plus any investment gain on the credit. The credit may not be available in all states. We do not consider the credit to be an "investment in the contract" for income tax purposes. ADMINISTRATION. We have primary responsibility for all administration of the Contracts and the Variable Account. We entered into an administrative services agreement with The Prudential Insurance Company of America ("PICA") whereby, PICA or an affiliate provides administrative services to the Variable Account and the Contracts on our behalf. In addition, PICA entered into a master services agreement with se/2/, inc., of 5801 SW 6th Avenue, Topeka, Kansas 66636, whereby se/2/, inc. provides certain business process outsourcing services with respect to the Contracts. se/2/, inc. may engage other service providers to provide certain administrative functions. These service providers may change over time, and as of December 31, 2009, consisted of the following: Keane Worldzen, Inc. (administrative services) located at 625 North Michigan Avenue, Suite 1100, Chicago, IL 60611; RR Donnelley Global Investment Markets (compliance printing and mailing) located at 111 South Wacker Drive, Chicago, IL 60606; Jayhawk File Express, LLC (file storage and document destruction) located at 601 E. 5th Street, Topeka, KS 66601-2596; Co-Sentry.net, LLC (back-up printing and disaster recovery) located at 9394 West Dodge Rd, Suite 100, Omaha, NE 68114; Convey Compliance Systems, Inc. (withholding calculations and tax statement mailing) located at 3650 Annapolis Lane, Suite 190, Plymouth, MN 55447; Spangler Graphics, LLC (compliance mailings) located at 29305 44th Street, Kansas City, KS 66106; Veritas Document Solutions, LLC (compliance mailings) located at 913 Commerce Ct, Buffalo Grove, IL 60089; Records Center of Topeka, a division of Underground Vaults & Storage, Inc. (back-up tapes storage) located at 1540 NW Gage Blvd. #6, Topeka, KS 66618; EquiSearch Services, Inc. (lost shareholder search) located at 11 Martime Avenue, Suite 665, White Plains, NY 10606; ZixCorp Systems, Inc. (email encryption) located at 2711 N. Haskell Ave., Suite 2300, Dallas, TX 75204; DST Systems, Inc. (FAN mail, positions, prices) located at 333 West 11 Street, 5th Floor, Kansas City, MO 64105. In administering the Contracts, the following services are provided, among others: .. maintenance of Contract Owner records; .. Contract Owner services; .. calculation of unit values; .. maintenance of the Variable Account; and .. preparation of Contract Owner reports. We will send you Contract statements at least annually. We will also send you transaction confirmations. You should notify us promptly in writing of any address change. You should read your statements and confirmations carefully and verify their accuracy. You should contact us promptly if you have a question about a periodic statement or a confirmation. We will investigate all complaints and make any necessary adjustments retroactively, but you must notify us of a potential error within a reasonable time after the date of the questioned statement. If you wait too long, we will make the 83 PROSPECTUS adjustment as of the date that we receive notice of the potential error. We will also provide you with additional periodic and other reports, information and prospectuses as may be required by federal securities laws. ANNUITIES HELD WITHIN A QUALIFIED PLAN If you use the Contract within an employer sponsored qualified retirement plan, the plan may impose different or additional conditions or limitations on withdrawals, waivers of withdrawal charges, death benefits, Payout Start Dates, income payments, and other Contract features. In addition, adverse tax consequences may result if Qualified Plan limits on distributions and other conditions are not met. Please consult your Qualified Plan administrator for more information. Allstate Life no longer issues deferred annuities to employer sponsored qualified retirement plans. LEGAL MATTERS All matters of Illinois law pertaining to the Contracts, including the validity of the Contracts and Allstate Life's right to issue such Contracts under Illinois insurance law, have been passed upon by Susan L. Lees, General Counsel of Allstate Life. TAXES - -------------------------------------------------------------------------------- THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. ALLSTATE LIFE MAKES NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION INVOLVING A CONTRACT. Federal, state, local and other tax consequences of ownership or receipt of distributions under an annuity contract depend on your individual circumstances. If you are concerned about any tax consequences with regard to your individual circumstances, you should consult a competent tax adviser. TAXATION OF ALLSTATE LIFE INSURANCE COMPANY Allstate Life is taxed as a life insurance company under Part I of Subchapter L of the Code. Since the Variable Account is not an entity separate from Allstate Life, and its operations form a part of Allstate Life, it will not be taxed separately. Investment income and realized capital gains of the Variable Account are automatically applied to increase reserves under the Contract. Under existing federal income tax law, Allstate Life believes that the Variable Account investment income and capital gains will not be taxed to the extent that such income and gains are applied to increase the reserves under the Contract. Accordingly, Allstate Life does not anticipate that it will incur any federal income tax liability attributable to the Variable Account, and therefore Allstate Life does not intend to make provisions for any such taxes. If Allstate Life is taxed on investment income or capital gains of the Variable Account, then Allstate Life may impose a charge against the Variable Account in order to make provision for such taxes. TAXATION OF VARIABLE ANNUITIES IN GENERAL TAX DEFERRAL. Generally, you are not taxed on increases in the Contract Value until a distribution occurs. This rule applies only where: .. the Contract Owner is a natural person, .. the investments of the Variable Account are "adequately diversified" according to Treasury Department regulations, and .. Allstate Life is considered the owner of the Variable Account assets for federal income tax purposes. NON-NATURAL OWNERS. Non-natural owners are also referred to as Non Living Owners in this prospectus. As a general rule, annuity contracts owned by non-natural persons such as corporations, trusts, or other entities are not treated as annuity contracts for federal income tax purposes. The income on such contracts does not enjoy tax deferral and is taxed as ordinary income received or accrued by the non-natural owner during the taxable year. EXCEPTIONS TO THE NON-NATURAL OWNER RULE. There are several exceptions to the general rule that annuity contracts held by a non-natural owner are not treated as annuity contracts for federal income tax purposes. Contracts will generally be treated as held by a natural person if the nominal owner is a trust or other entity which holds the contract as agent for a natural person. However, this special exception will not apply in the case of an employer who is the nominal owner of an annuity contract under a non-Qualified deferred compensation arrangement for its employees. Other exceptions to the non-natural owner rule are: (1) contracts acquired by an estate of a decedent by reason of the death of the decedent; (2) certain qualified contracts; (3) contracts purchased by employers upon the termination of certain Qualified Plans; (4) certain contracts used in connection with structured settlement agreements; and (5) immediate annuity contracts, purchased with a single premium, when the annuity starting date is no later than a year from purchase of the annuity and substantially equal periodic payments are made, not less frequently than annually, during the annuity period. GRANTOR TRUST OWNED ANNUITY. Contracts owned by a grantor trust are considered owned by a non-natural owner. Grantor trust owned contracts receive tax deferral as described in the Exceptions to the Non-Natural Owner Rule section. In accordance with the Code, upon the death of the annuitant, the death benefit must be paid. According to your Contract, the Death Benefit is paid to the beneficiary. A trust named beneficiary, including a grantor trust, has two options for 84 PROSPECTUS receiving any death benefits: 1) a lump sum payment, or 2) payment deferred up to five years from date of death. DIVERSIFICATION REQUIREMENTS. For a Contract to be treated as an annuity for federal income tax purposes, the investments in the Variable Account must be "adequately diversified" consistent with standards under Treasury Department regulations. If the investments in the Variable Account are not adequately diversified, the Contract will not be treated as an annuity contract for federal income tax purposes. As a result, the income on the Contract will be taxed as ordinary income received or accrued by the Contract owner during the taxable year. Although Allstate Life does not have control over the Portfolios or their investments, we expect the Portfolios to meet the diversification requirements. OWNERSHIP TREATMENT. The IRS has stated that a contract owner will be considered the owner of separate account assets if he possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets. At the time the diversification regulations were issued, the Treasury Department announced that the regulations do not provide guidance concerning circumstances in which investor control of the separate account investments may cause a Contract owner to be treated as the owner of the separate account. The Treasury Department also stated that future guidance would be issued regarding the extent that owners could direct sub-account investments without being treated as owners of the underlying assets of the separate account. Your rights under the Contract are different than those described by the IRS in private and published rulings in which it found that Contract owners were not owners of separate account assets. For example, if your contract offers more than twenty (20) investment alternatives you have the choice to allocate premiums and contract values among a broader selection of investment alternatives than described in such rulings. You may be able to transfer among investment alternatives more frequently than in such rulings. These differences could result in you being treated as the owner of the Variable Account. If this occurs, income and gain from the Variable Account assets would be includible in your gross income. Allstate Life does not know what standards will be set forth in any regulations or rulings which the Treasury Department may issue. It is possible that future standards announced by the Treasury Department could adversely affect the tax treatment of your Contract. We reserve the right to modify the Contract as necessary to attempt to prevent you from being considered the federal tax owner of the assets of the Variable Account. However, we make no guarantee that such modification to the Contract will be successful. TAXATION OF PARTIAL AND FULL WITHDRAWALS. If you make a partial withdrawal under a Non-Qualified Contract, amounts received are taxable to the extent the Contract Value, without regard to surrender charges, exceeds the investment in the Contract. The investment in the Contract is the gross premium paid for the contract minus any amounts previously received from the Contract if such amounts were properly excluded from your gross income. If you make a full withdrawal under a Non-Qualified Contract, the amount received will be taxable only to the extent it exceeds the investment in the Contract. TAXATION OF ANNUITY PAYMENTS. Generally, the rule for income taxation of annuity payments received from a Non-Qualified Contract provides for the return of your investment in the Contract in equal tax-free amounts over the payment period. The balance of each payment received is taxable. For fixed annuity payments, the amount excluded from income is determined by multiplying the payment by the ratio of the investment in the Contract (adjusted for any refund feature or period certain) to the total expected value of annuity payments for the term of the Contract. If you elect variable annuity payments, the amount excluded from taxable income is determined by dividing the investment in the Contract by the total number of expected payments. The annuity payments will be fully taxable after the total amount of the investment in the Contract is excluded using these ratios. If any variable payment is less than the excludable amount you should contact a competent tax advisor to determine how to report any unrecovered investment. The federal tax treatment of annuity payments is unclear in some respects. As a result, if the IRS should provide further guidance, it is possible that the amount we calculate and report to the IRS as taxable could be different. If you die, and annuity payments cease before the total amount of the investment in the Contract is recovered, the unrecovered amount will be allowed as a deduction for your last taxable year. TAXATION OF LEVEL MONTHLY VARIABLE ANNUITY PAYMENTS. You may have an option to elect a variable income payment stream consisting of level monthly payments that are recalculated annually. Although we will report your levelized payments to the IRS in the year distributed, it is possible the IRS could determine that receipt of the first monthly payout of each annual amount is constructive receipt of the entire annual amount. If the IRS were to take this position, the taxable amount of your levelized payments would be accelerated to the time of the first monthly payout and reported in the tax year in which the first monthly payout is received. WITHDRAWALS AFTER THE PAYOUT START DATE. Federal tax law is unclear regarding the taxation of any additional withdrawal received after the Payout Start Date. It is possible that a greater or lesser portion of such a payment could be taxable than the amount we determine. DISTRIBUTION AT DEATH RULES. In order to be considered an annuity contract for federal income tax purposes, the Contract must provide: .. if any Contract Owner dies on or after the Payout Start Date but before the entire interest in the 85 PROSPECTUS Contract has been distributed, the remaining portion of such interest must be distributed at least as rapidly as under the method of distribution being used as of the date of the Contract Owner's death; .. if any Contract Owner dies prior to the Payout Start Date, the entire interest in the Contract will be distributed within 5 years after the date of the Contract Owner's death. These requirements are satisfied if any portion of the Contract Owner's interest that is payable to (or for the benefit of) a designated Beneficiary is distributed over the life of such Beneficiary (or over a period not extending beyond the life expectancy of the Beneficiary) and the distributions begin within 1 year of the Contract Owner's death. If the Contract Owner's designated Beneficiary is the surviving spouse of the Contract Owner, the Contract may be continued with the surviving spouse as the new Contract Owner; .. if the Contract Owner is a non-natural person, then the Annuitant will be treated as the Contract Owner for purposes of applying the distribution at death rules. In addition, a change in the Annuitant on a Contract owned by a non-natural person will be treated as the death of the Contract Owner. We administer certain spousal rights under the Contract and related tax reporting in accordance with our understanding of the Defense of Marriage Act (which defines a "marriage" as a legal union between a man and a woman and a "spouse" as a person of the opposite sex). Depending on the state in which your Contract is issued, we may offer certain spousal benefits to civil union couples or same-sex marriage spouses. You should be aware, however, that federal tax law does not recognize civil unions or same-sex marriages. Therefore, we cannot permit a civil union partner or same-sex spouse to continue the Contract within the meaning of the tax law upon the death of the first partner under the Contract's "spousal continuance" provision. Civil union couples and same-sex marriage spouses should consider that limitation before selecting a spousal benefit under the Contract. TAXATION OF ANNUITY DEATH BENEFITS. Death Benefit amounts are included in income as follows: .. if distributed in a lump sum, the amounts are taxed in the same manner as a total withdrawal, or .. if distributed under an Income Plan, the amounts are taxed in the same manner as annuity payments. PENALTY TAX ON PREMATURE DISTRIBUTIONS. A 10% penalty tax applies to the taxable amount of any premature distribution from a non-Qualified Contract. The penalty tax generally applies to any distribution made prior to the date you attain age 59 1/2. However, no penalty tax is incurred on distributions: .. made on or after the date the Contract Owner attains age 59 1/2, .. made as a result of the Contract Owner's death or becoming totally disabled, .. made in substantially equal periodic payments (as defined by the Code) over the Contract Owner's life or life expectancy, or over the joint lives or joint life expectancies of the Contract Owner and the Beneficiary, .. made under an immediate annuity, or .. attributable to investment in the Contract before August 14, 1982. You should consult a competent tax advisor to determine how these exceptions may apply to your situation. SUBSTANTIALLY EQUAL PERIODIC PAYMENTS. With respect to non-Qualified Contracts using substantially equal periodic payments or immediate annuity payments as an exception to the penalty tax on premature distributions, any additional withdrawal or other material modification of the payment stream would violate the requirement that payments must be substantially equal. Failure to meet this requirement would mean that the income portion of each payment received prior to the later of 5 years or the Contract Owner's attaining age 59 1/2 would be subject to a 10% penalty tax unless another exception to the penalty tax applied. The tax for the year of the modification is increased by the penalty tax that would have been imposed without the exception, plus interest for the years in which the exception was used. A material modification does not include permitted changes described in published IRS rulings. You should consult a competent tax advisor prior to creating or modifying a substantially equal periodic payment stream. TAX FREE EXCHANGES UNDER INTERNAL REVENUE CODE SECTION 1035. A 1035 exchange is a tax-free exchange of a non-Qualified life insurance contract, endowment contract or annuity contract into a non-Qualified annuity contract. The contract owner(s) must be the same on the old and new contract. Basis from the old contract carries over to the new contract so long as we receive that information from the relinquishing company. If basis information is never received, we will assume that all exchanged funds represent earnings and will allocate no cost basis to them. PARTIAL EXCHANGES. The IRS has issued rulings that permit partial exchanges of annuity contracts. Effective June 30, 2008, a partial exchange, of a deferred annuity contract for another deferred annuity contract, will qualify for tax-deferral only if no amount is withdrawn or surrendered from either contract for a period of 12 months. The 12 month period begins on the date when exchange proceeds are treated as premiums paid for the recipient contract. Withdrawals from, annuitizations, taxable Owner or Annuitant changes, or surrenders of either contract within the 12 month period will retroactively negate the partial exchange, unless one of the following applies: .. the contact owner reaches 59 1/2, becomes totally disabled, dies, obtains a divorce or suffers a loss of employment after the partial exchange was completed and prior to the withdrawal, annuitization, Owner or Annuitant change, or surrender; 86 PROSPECTUS .. if the annuity is owned by an entity, the annuitant dies after the partial exchange was completed and prior to the withdrawal, annuitization, Owner or Annuitant change or surrender; .. the withdrawal is allocable to investment in the Contract before August 14, 1982; or, .. the annuity is a qualified funding asset within the meaning of Code section 130(d). If a partial exchange is retroactively negated, the amount originally transferred to the recipient contract is treated as a withdrawal from the source contract, taxable to the extent of any gain in that contract on the date of the exchange. An additional 10% tax penalty may also apply if the Contract Owner is under age 59 1/2. Your Contract may not permit partial exchanges. TAXATION OF OWNERSHIP CHANGES. If you transfer a non-Qualified Contract without full and adequate consideration to a person other than your spouse (or to a former spouse incident to a divorce), you will be taxed on the difference between the Contract Value and the investment in the Contract at the time of transfer. Any assignment or pledge (or agreement to assign or pledge) of the Contract Value is taxed as a withdrawal of such amount or portion and may also incur the 10% penalty tax. AGGREGATION OF ANNUITY CONTRACTS. The Code requires that all non-Qualified deferred annuity contracts issued by Allstate Life (or its affiliates) to the same Contract Owner during any calendar year be aggregated and treated as one annuity contract for purposes of determining the taxable amount of a distribution. INCOME TAX WITHHOLDING Generally, Allstate Life is required to withhold federal income tax at a rate of 10% from all non-annuitized distributions. The customer may elect out of withholding by completing and signing a withholding election form. If no election is made or no U.S. taxpayer identification number is provided we will automatically withhold the required 10% of the taxable amount. In certain states, if there is federal withholding, then state withholding is also mandatory. Allstate Life is required to withhold federal income tax using the wage withholding rates for all annuitized distributions. The customer may elect out of withholding by completing and signing a withholding election form. If no election is made, we will automatically withhold using married with three exemptions as the default. If no U.S. taxpayer identification number is provided, we will automatically withhold using single with zero exemptions as the default. In certain states, if there is federal withholding, then state withholding is also mandatory. Election out of withholding is valid only if the customer provides a U.S. residence address and taxpayer identification number. Generally, Code Section 1441 provides that Allstate Life as a withholding agent must withhold 30% of the taxable amounts paid to a non-resident alien. A non-resident alien is someone other than a U.S. citizen or resident alien. We require an original IRS Form W-8BEN at issue to certify the owners' foreign status. Withholding may be reduced or eliminated if covered by an income tax treaty between the U.S. and the non-resident alien's country of residence if the payee provides a U.S. taxpayer identification number on a fully completed Form W-8BEN. A U.S. taxpayer identification number is a social security number or an individual taxpayer identification number ("ITIN"). ITINs are issued by the IRS to non-resident alien individuals who are not eligible to obtain a social security number. The U.S. does not have a tax treaty with all countries nor do all tax treaties provide an exclusion or lower withholding rate for annuities. TAX QUALIFIED CONTRACTS The income on tax sheltered annuity (TSA) and IRA investments is tax deferred, and the income from annuities held by such plans does not receive any additional tax deferral. You should review the annuity features, including all benefits and expenses, prior to purchasing an annuity as a TSA or IRA. Tax Qualified Contracts are contracts purchased as or in connection with: .. Individual Retirement Annuities (IRAs) under Code Section 408(b); .. Roth IRAs under Code Section 408A; .. Simplified Employee Pension (SEP IRA) under Code Section 408(k); .. Savings Incentive Match Plans for Employees (SIMPLE IRA) under Code Section 408(p); .. Tax Sheltered Annuities under Code Section 403(b); .. Corporate and Self Employed Pension and Profit Sharing Plans under Code Section 401; and .. State and Local Government and Tax-Exempt Organization Deferred Compensation Plans under Code Section 457. Allstate Life reserves the right to limit the availability of the Contract for use with any of the retirement plans listed above or to modify the Contract to conform with tax requirements. If you use the Contract within an employer sponsored qualified retirement plan, the plan may impose different or additional conditions or limitations on withdrawals, waiver of charges, death benefits, Payout Start Dates, income payments, and other Contract features. In addition, adverse tax consequences may result if Qualified Plan limits on distributions and other conditions are not met. Please consult your Qualified Plan administrator for more information. Allstate Life no longer issues deferred annuities to employer sponsored qualified retirement plans. The tax rules applicable to participants with tax qualified annuities vary according to the type of contract and the terms and conditions of the endorsement. Adverse tax consequences may result from certain transactions such 87 PROSPECTUS as excess contributions, premature distributions, and, distributions that do not conform to specified commencement and minimum distribution rules. Allstate Life can issue an individual retirement annuity on a rollover or transfer of proceeds from a decedent's IRA, TSA, or employer sponsored retirement plan under which the decedent's surviving spouse is the beneficiary. Allstate Life does not offer an individual retirement annuity that can accept a transfer of funds for any other, non-spousal, beneficiary of a decedent's IRA, TSA, or employer sponsored qualified retirement plan. Please refer to your Endorsement for IRAs or 403(b) plans, if applicable, for additional information on your death settlement options. In the case of certain Qualified Plans, the terms of the Qualified Plan Endorsement and the plans may govern the right to benefits, regardless of the terms of the Contract. TAXATION OF WITHDRAWALS FROM AN INDIVIDUALLY OWNED TAX QUALIFIED CONTRACT. If you make a partial withdrawal under a Tax Qualified Contract other than a Roth IRA, the portion of the payment that bears the same ratio to the total payment that the investment in the Contract (i.e., nondeductible IRA contributions) bears to the Contract Value, is excluded from your income. We do not keep track of nondeductible contributions, and generally all tax reporting of distributions from Tax Qualified Contracts other than Roth IRAs will indicate that the distribution is fully taxable. "Qualified distributions" from Roth IRAs are not included in gross income. "Qualified distributions" are any distributions made more than five taxable years after the taxable year of the first contribution to any Roth IRA and which are: .. made on or after the date the Contract Owner attains age 59 1/2, .. made to a beneficiary after the Contract Owner's death, .. attributable to the Contract Owner being disabled, or .. made for a first time home purchase (first time home purchases are subject to a lifetime limit of $10,000). "Nonqualified distributions" from Roth IRAs are treated as made from contributions first and are included in gross income only to the extent that distributions exceed contributions. REQUIRED MINIMUM DISTRIBUTIONS. Generally, Tax Qualified Contracts (excluding Roth IRAs) require minimum distributions upon reaching age 70 1/2. Failure to withdraw the required minimum distribution will result in a 50% tax penalty on the shortfall not withdrawn from the Contract. Effective December 31, 2005, the IRS requires annuity contracts to include the actuarial present value of other benefits for purposes of calculating the required minimum distribution amount. These other benefits may include accumulation, income, or death benefits. Not all income plans offered under the Contract satisfy the requirements for minimum distributions. Because these distributions are required under the Code and the method of calculation is complex, please see a competent tax advisor. THE DEATH BENEFIT AND TAX QUALIFIED CONTRACTS. Pursuant to the Code and IRS regulations, an IRA (e.g., traditional IRA, Roth IRA, SEP IRA and SIMPLE IRA) may not invest in life insurance contracts. However, an IRA may provide a death benefit that equals the greater of the purchase payments or the Contract Value. The Contract offers a death benefit that in certain circumstances may exceed the greater of the purchase payments or the Contract Value. We believe that the Death Benefits offered by your Contract do not constitute life insurance under these regulations. It is also possible that certain death benefits that offer enhanced earnings could be characterized as an incidental death benefit. If the death benefit were so characterized, this could result in current taxable income to a Contract Owner. In addition, there are limitations on the amount of incidental death benefits that may be provided under Qualified Plans, such as in connection with a TSA or employer sponsored qualified retirement plan. Allstate Life reserves the right to limit the availability of the Contract for use with any of the Qualified Plans listed above. PENALTY TAX ON PREMATURE DISTRIBUTIONS FROM TAX QUALIFIED CONTRACTS. A 10% penalty tax applies to the taxable amount of any premature distribution from a Tax Qualified Contract. The penalty tax generally applies to any distribution made prior to the date you attain age 59 1/2. However, no penalty tax is incurred on distributions: .. made on or after the date the Contract Owner attains age 59 1/2, .. made as a result of the Contract Owner's death or total disability, .. made in substantially equal periodic payments (as defined by the Code) over the Contract Owner's life or life expectancy, or over the joint lives or joint life expectancies of the Contract Owner and the Beneficiary, .. made after separation from service after age 55 (does not apply to IRAs), .. made pursuant to an IRS levy, .. made for certain medical expenses, .. made to pay for health insurance premiums while unemployed (applies only for IRAs), .. made for qualified higher education expenses (applies only for IRAs) .. made for a first time home purchase (up to a $10,000 lifetime limit and applies only for IRAs), and 88 PROSPECTUS .. from an IRA or attributable to elective deferrals under a 401(k) plan, 403(b) annuity, or certain similar arrangements made to individuals who (because of their being members of a reserve component) are ordered or called to active duty after Sept. 11, 2001, for a period of more than 179 days or for an indefinite period; and made during the period beginning on the date of the order or call to duty and ending at the close of the active duty period. During the first 2 years of the individual's participation in a SIMPLE IRA, distributions that are otherwise subject to the premature distribution penalty, will be subject to a 25% penalty tax. You should consult a competent tax advisor to determine how these exceptions may apply to your situation. SUBSTANTIALLY EQUAL PERIODIC PAYMENTS ON TAX QUALIFIED CONTRACTS. With respect to Tax Qualified Contracts using substantially equal periodic payments as an exception to the penalty tax on premature distributions, any additional withdrawal or other material modification of the payment stream would violate the requirement that payments must be substantially equal. Failure to meet this requirement would mean that the income portion of each payment received prior to the later of 5 years or the taxpayer's attaining age 59 1/2 would be subject to a 10% penalty tax unless another exception to the penalty tax applied. The tax for the year of the modification is increased by the penalty tax that would have been imposed without the exception, plus interest for the years in which the exception was used. A material modification does not include permitted changes described in published IRS rulings. You should consult a competent tax advisor prior to creating or modifying a substantially equal periodic payment stream. INCOME TAX WITHHOLDING ON TAX QUALIFIED CONTRACTS. Generally, Allstate Life is required to withhold federal income tax at a rate of 10% from all non-annuitized distributions that are not considered "eligible rollover distributions." The customer may elect out of withholding by completing and signing a withholding election form. If no election is made or if no U.S. taxpayer identification number is provided, we will automatically withhold the required 10% from the taxable amount. In certain states, if there is federal withholding, then state withholding is also mandatory. Allstate Life is required to withhold federal income tax at a rate of 20% on all "eligible rollover distributions" unless you elect to make a "direct rollover" of such amounts to an IRA or eligible retirement plan. Eligible rollover distributions generally include all distributions from Tax Qualified Contracts, including TSAs but excluding IRAs, with the exception of: .. required minimum distributions, or, .. a series of substantially equal periodic payments made over a period of at least 10 years, or, .. a series of substantially equal periodic payments made over the life (joint lives) of the participant (and beneficiary), or, .. hardship distributions. With respect to any Contract held under a Section 457 plan or by the trustee of a Section 401 Pension or Profit Sharing Plan, we will not issue payments directly to a plan participant or beneficiary. Consequently, the obligation to comply with the withholding requirements described above will be the responsibility of the plan. For all annuitized distributions that are not subject to the 20% withholding requirement, Allstate Life is required to withhold federal income tax using the wage withholding rates. The customer may elect out of withholding by completing and signing a withholding election form. If no election is made, we will automatically withhold using married with three exemptions as the default. If no U.S. taxpayer identification number is provided, we will automatically withhold using single with zero exemptions as the default. In certain states, if there is federal withholding, then state withholding is also mandatory. Election out of withholding is valid only if the customer provides a U.S. residence address and taxpayer identification number. Generally, Code Section 1441 provides that Allstate Life as a withholding agent must withhold 30% of the taxable amounts paid to a non-resident alien. A non-resident alien is someone other than a U.S. citizen or resident alien. We require an original IRS Form W-8BEN at issue to certify the owners' foreign status. Withholding may be reduced or eliminated if covered by an income tax treaty between the U.S. and the non-resident alien's country of residence if the payee provides a U.S. taxpayer identification number on a fully completed Form W-8BEN. A U.S. taxpayer identification number is a social security number or an individual taxpayer identification number ("ITIN"). ITINs are issued by the IRS to non-resident alien individuals who are not eligible to obtain a social security number. The U.S. does not have a tax treaty with all countries nor do all tax treaties provide an exclusion or lower withholding rate for annuities. CHARITABLE IRA DISTRIBUTIONS. The Pension Protection Act of 2006 included a charitable giving incentive permitting tax-free IRA distributions for charitable purposes. The Emergency Economic Stabilization Act of 2008 extended this provision for two years. For distributions in tax years beginning after 2005 and before 2010, the Act provides an exclusion from gross income, up to $100,000, for otherwise taxable IRA distributions from a traditional or Roth IRA that are qualified charitable distributions. To constitute a qualified charitable distribution, the distribution must be made (1) directly by the IRA trustee to certain qualified 89 PROSPECTUS charitable organizations and (2) on or after the date the IRA owner attains age 70 1/2. Distributions that are excluded from income under this provision are not taken into account in determining the individual's deduction, if any, for charitable contributions. The IRS has indicated that an IRA trustee is not responsible for determining whether a distribution to a charity is one that satisfies the requirements for the new income tax exclusion added by the Pension Protection Act. As a result the general rules for reporting IRA distributions apply. INDIVIDUAL RETIREMENT ANNUITIES. Code Section 408(b) permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity (IRA). Individual Retirement Annuities are subject to limitations on the amount that can be contributed and on the time when distributions may commence. Certain distributions from other types of qualified retirement plans may be "rolled over" on a tax-deferred basis into an Individual Retirement Annuity. ROTH INDIVIDUAL RETIREMENT ANNUITIES. Code Section 408A permits eligible individuals to make nondeductible contributions to an individual retirement program known as a Roth Individual Retirement Annuity. Roth Individual Retirement Annuities are subject to limitations on the amount that can be contributed and on the time when distributions may commence. A traditional Individual Retirement Account or Annuity may be converted or "rolled over" to a Roth Individual Retirement Annuity. For distributions after 2007, the Pension Protection Act of 2006 allows distributions from qualified retirement plans including tax sheltered annuities and governmental Section 457 plans to be rolled over directly into a Roth IRA, subject to the usual rules that apply to conversions from a traditional IRA into a Roth IRA. The income portion of a conversion or rollover distribution is taxable currently, but is exempted from the 10% penalty tax on premature distributions. Prior to January 1, 2010, income and filing status limitations applied to rollovers from non-Roth accounts to a Roth IRA. Effective January 1, 2005, the IRS requires conversions of annuity contracts to include the actuarial present value of other benefits for purposes of valuing the taxable amount of the conversion. ANNUITIES HELD BY INDIVIDUAL RETIREMENT ACCOUNTS (COMMONLY KNOWN AS CUSTODIAL IRAS). Code Section 408 permits a custodian or trustee of an Individual Retirement Account to purchase an annuity as an investment of the Individual Retirement Account. If an annuity is purchased inside of an Individual Retirement Account, then the Annuitant must be the same person as the beneficial owner of the Individual Retirement Account. If you have a contract issued as an IRA under Code Section 408(b) and request to change the ownership to an IRA custodian permitted under Section 408, we will treat a request to change ownership from an individual to a custodian as an indirect rollover. We will send a Form 1099R to report the distribution and the custodian should issue a Form 5498 for the contract value contribution. Generally, the death benefit of an annuity held in an Individual Retirement Account must be paid upon the death of the Annuitant. However, in most states, the Contract permits the custodian or trustee of the Individual Retirement Account to continue the Contract in the accumulation phase, with the Annuitant's surviving spouse as the new Annuitant, if the following conditions are met: 1) The custodian or trustee of the Individual Retirement Account is the owner of the annuity and has the right to the death proceeds otherwise payable under the Contract; 2) The deceased Annuitant was the beneficial owner of the Individual Retirement Account; 3) We receive a complete request for settlement for the death of the Annuitant; and 4) The custodian or trustee of the Individual Retirement Account provides us with a signed certification of the following: (a) The Annuitant's surviving spouse is the sole beneficiary of the Individual Retirement Account; (b) The Annuitant's surviving spouse has elected to continue the Individual Retirement Account as his or her own Individual Retirement Account; and (c) The custodian or trustee of the Individual Retirement Account has continued the Individual Retirement Account pursuant to the surviving spouse's election. SIMPLIFIED EMPLOYEE PENSION IRA (SEP IRA). Code Section 408(k) allows eligible employers to establish simplified employee pension plans for their employees using individual retirement annuities. These employers may, within specified limits, make deductible contributions on behalf of the employees to the individual retirement annuities. Employers intending to use the Contract in connection with such plans should seek competent tax advice. SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE IRA). Code Section 408(p) allows eligible employers with 100 or fewer employees to establish SIMPLE retirement plans for their employees using individual retirement annuities. In general, a SIMPLE IRA consists of a salary deferral program for eligible employees and matching or nonelective contributions made by employers. Employers intending to purchase the Contract as a SIMPLE IRA should seek competent tax and legal advice. SIMPLE IRA plans must include the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2007 (EGTRRA) to avoid adverse tax consequences. If your current SIMPLE IRA plan uses IRS Model Form 90 PROSPECTUS 5304-SIMPLE with a revision date of March 2002 or later, then your plan is up to date. If your plan has a revision date prior to March 2002, please consult with your tax or legal advisor to determine the action you need to take in order to comply with this requirement. TO DETERMINE IF YOU ARE ELIGIBLE TO CONTRIBUTE TO ANY OF THE ABOVE LISTED IRAS (TRADITIONAL, ROTH, SEP, OR SIMPLE), PLEASE REFER TO IRS PUBLICATION 590 AND YOUR COMPETENT TAX ADVISOR. TAX SHELTERED ANNUITIES. Code Section 403(b) provides tax-deferred retirement savings plans for employees of certain non-profit and educational organizations. Under Section 403(b), any contract used for a 403(b) plan must provide that distributions attributable to salary reduction contributions made after 12/31/88, and all earnings on salary reduction contributions, may be made only on or after the date the employee: .. attains age 59 1/2, .. severs employment, .. dies, .. becomes disabled, or .. incurs a hardship (earnings on salary reduction contributions may not be distributed on account of hardship). These limitations do not apply to withdrawals where Allstate Life is directed to transfer some or all of the Contract Value to another 403(b) plan. Generally, we do not accept funds in 403(b) contracts that are subject to the Employee Retirement Income Security Act of 1974 (ERISA). CAUTION: Under recent IRS regulations we can accept contributions, transfers and rollovers only if we have entered into an information-sharing agreement, or its functional equivalent, with the applicable employer or its plan administrator. Unless your contract is grandfathered from certain provisions in these regulations, we will only process certain transactions (e.g, transfers, withdrawals, hardship distributions and, if applicable, loans) with employer approval. This means that if you request one of these transactions we will not consider your request to be in good order, and will not therefore process the transaction, until we receive the employer's approval in written or electronic form. CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS. Section 401(a) of the Code permits corporate employers to establish various types of tax favored retirement plans for employees. Self-employed individuals may establish tax favored retirement plans for themselves and their employees (commonly referred to as "H.R.10" or "Keogh"). Such retirement plans may permit the purchase of annuity contracts. Allstate Life no longer issues annuity contracts to employer sponsored qualified retirement plans. There are two owner types for contracts intended to qualify under Section 401(a): a qualified plan fiduciary or an annuitant owner. .. A qualified plan fiduciary exists when a qualified plan trust that is intended to qualify under Section 401(a) of the Code is the owner. The qualified plan trust must have its own tax identification number and a named trustee acting as a fiduciary on behalf of the plan. The annuitant should be the person for whose benefit the contract was purchased. .. An annuitant owner exists when the tax identification number of the owner and annuitant are the same, or the annuity contract is not owned by a qualified plan trust. The annuitant should be the person for whose benefit the contract was purchased. If a qualified plan fiduciary is the owner of the contract, the qualified plan must be the beneficiary so that death benefits from the annuity are distributed in accordance with the terms of the qualified plan. Annuitant owned contracts require that the beneficiary be the annuitant's spouse (if applicable), which is consistent with the required IRS language for qualified plans under Section 401(a). A completed Annuitant Owned Qualified Plan Designation of Beneficiary form is required in order to change the beneficiary of an annuitant owned Qualified Plan contract. STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT ORGANIZATION DEFERRED COMPENSATION PLANS. Section 457 of the Code permits employees of state and local governments and tax-exempt organizations to defer a portion of their compensation without paying current taxes. The employees must be participants in an eligible deferred compensation plan. In eligible governmental plans, all assets and income must be held in a trust/ custodial account/annuity contract for the exclusive benefit of the participants and their beneficiaries. To the extent the Contracts are used in connection with a non-governmental eligible plan, employees are considered general creditors of the employer and the employer as owner of the Contract has the sole right to the proceeds of the Contract. Under eligible 457 plans, contributions made for the benefit of the employees will not be includible in the employees' gross income until distributed from the plan. Allstate Life no longer issues annuity contracts to 457 plans. 91 PROSPECTUS Allstate Life's Annual Report on Form 10-K for the year ended December 31, 2009, is incorporated herein by reference, which means that it is legally a part of this prospectus. All other reports filed with the SEC under the Exchange Act since the Form 10-K Annual Report, including filings made on Form 10-Q and Form 8-K, and all documents or reports we file with the SEC under the Exchange Act after the date of this prospectus and before we terminate the offering of the securities under this prospectus are also incorporated herein by reference, which means that they are legally a part of this prospectus. Statements in this prospectus, or in documents that we file later with the SEC and that legally become a part of this prospectus, may change or supersede statements in other documents that are legally part of this prospectus. Accordingly, only the statement that is changed or replaced will legally be a part of this prospectus. We file our Exchange Act documents and reports, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, electronically on the SEC's "EDGAR" system using the identifying number CIK No. 0000352736. The SEC maintains a Web site that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the site is http://www.sec.gov. You also can view these materials at the SEC's Public Reference Room at 100 F Street NE, Room 1580, Washington, DC 20549-2001. For more information on the operations of SEC's Public Reference Room, call 1-202-551-8090. If you have received a copy of this prospectus, and would like a free copy of any document incorporated herein by reference (other than exhibits not specifically incorporated by reference into the text of such documents), please write or call us at P.O. Box 758565, Topeka, KS 66675-8565 or 1-800-457-7617. 92 PROSPECTUS ANNUAL REPORTS AND OTHER DOCUMENTS - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
ADDITIONS, DELETIONS, OR SUBSTITUTIONS OF INVESTMENTS --------------------------------------------------------------------- THE CONTRACTS --------------------------------------------------------------------- CALCULATION OF ACCUMULATION UNIT VALUES --------------------------------------------------------------------- CALCULATION OF VARIABLE INCOME PAYMENTS --------------------------------------------------------------------- THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE. WE DO NOT AUTHORIZE ANYONE TO PROVIDE ANY INFORMATION OR REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS PROSPECTUS OTHER THAN AS CONTAINED IN THIS PROSPECTUS. 93 PROSPECTUS
GENERAL MATTERS --------------------------------- EXPERTS --------------------------------- FINANCIAL STATEMENTS --------------------------------- APPENDIX A --------------------------------- APPENDIX A ALLSTATE ADVISOR CONTRACT COMPARISON CHART - -------------------------------------------------------------------------------- The Fixed Account Options available depend on the type of Contract you have purchased and the state in which your Contract was issued. The following tables summarize the availability of the Fixed Account Options in general. Please check with your representative for specific details for your state.
Advisor Preferred Feature Advisor Advisor Plus ---------------------------------------------------- 5-year Withdrawal 3-year Withdrawal No Withdrawal Charge Option Charge Option Charge Option - - - - ---------------------------------------------------- up to 5% depending on issue age and amount of purchase Credit Enhancement None payments None None None - ----------------------------------------------------------------------------------------------------------------- Mortality and Expense Risk Charge (Base Contract) 1.10% 1.40% 1.40% 1.50% 1.60% - ----------------------------------------------------------------------------------------------------------------- Withdrawal Charge (% of purchase 8.5/ 8.5/ 8.5/ 7.5/ payment) 7/ 7/ 6/ 5/ 4/ 3/ 2 6.5/ 5.5/ 4/2.5 7/ 6/ 5/ 4/ 3 7/ 6/ 5 None - ----------------------------------------------------------------------------------------------------------------- Confinement, Confinement, Confinement, Confinement, Withdrawal Charge Terminal Illness, Terminal Illness, Terminal Illness, Terminal Illness, Waivers Unemployment Unemployment Unemployment Unemployment N/A
DCA Fixed Account Option - ----------------------------------------------------------------------------------------------------- Advisor Preferred Advisor Advisor Plus ---------------------------------------------------- 5-Year 3-Year Withdrawal Charge Withdrawal Charge No Withdrawal Option Option Charge Option - - - - ---------------------------------------------------- 3 to 6-month 3 to 6-month 3 to 6-month 3 to 6-month N/A Transfer Periods ---------------------------------------------------------------------------------- 7 to 12-month 7 to 12-month 7 to 12-month 7 to 12-month N/A * Available only in states in which the MVA Fixed Account Option is not offered. 94 PROSPECTUS
Standard Fixed Account Option (some options not available in all states) - --------------------------------------------------------------------------------------------------------------------------- Advisor Preferred Advisor AdvisorPlus ----------------------------------------------------- 5-Year 3-Year No Withdrawal Charge Withdrawal Charge Withdrawal Charge Option Option Option - -------------------- - ----------------------------------------------------- 1-year N/A N/A N/A N/A -------------------------------------------------------------------------------------------------------- 3-year* N/A N/A N/A N/A Guarantee Periods -------------------------------------------------------------------------------------------------------- 5-year* N/A N/A N/A N/A -------------------------------------------------------------------------------------------------------- 7-year* N/A N/A N/A N/A ** Not available in states in which the 3-, 5-, or 7-year Standard Fixed Account Options are offered. 95 PROSPECTUS
MVA Fixed Account Option (not available in all states)** - -------------------------------------------------------------------------------------------------- Advisor Preferred Advisor Advisor Plus -------------------------------------------------------- 5-Year 3-Year No Withdrawal Charge Withdrawal Charge Withdrawal Charge Option Option Option - - - - -------------------------------------------------------- 3-year 3-year 3-year 3-year 3-year ------------------------------------------------------------------------------- 5-year 5-year 5-year 5-year 5-year Guarantee Periods ------------------------------------------------------------------------------- 7-year 7-year 7-year 7-year 7-year ------------------------------------------------------------------------------- 10-year 10-year 10-year 10-year 10-year APPENDIX B - MARKET VALUE ADJUSTMENT - -------------------------------------------------------------------------------- The Market Value Adjustment is based on the following: Treasury Rate means the U.S. Treasury Note Constant Maturity yield as reported in Federal Reserve Board Statistical Release H.15. If such yields cease to be available in Federal Reserve Board Statistical Release H.15, then we will use an alternate source for such information in our discretion. The Market Value Adjustment factor is determined from the following formula: .9 X [I-(J + .0025)] X N To determine the Market Value Adjustment, we will multiply the Market Value Adjustment factor by the amount transferred, withdrawn, paid as Death Proceeds, or applied to an Income Plan from a Market Value Adjusted Fixed Guarantee Period Account at any time other than during the 30 day period after such Guarantee Period Account expires. NOTE: These examples assume that premium taxes are not applicable. EXAMPLES OF MARKET VALUE ADJUSTMENT Purchase Payment: $10,000 allocated to a Market Value Adjusted Fixed Guarantee Period Account Guarantee Period: 5 years Interest Rate: 4.50% Full Withdrawal: End of Contract Year 3 Contract: Allstate Advisor*
I = the Treasury Rate for a maturity equal to the term length of the Guarantee Period Account for the week preceding the establishment of the Market Value Adjusted Fixed Guarantee Period Account; J = the Treasury Rate for a maturity equal to the term length of the Market Value Adjusted Fixed Guarantee Period Account for the week preceding the date amounts are transferred or withdrawn from the Market Value Adjusted Fixed Guarantee Period Account, the date we determine the Death Proceeds, or the Payout Start Date, as the case may be ("Market Value Adjustment Date"). N = the number of whole and partial years from the Market Value Adjustment Date to the expiration of the term length of the Market Value Adjusted Fixed Guarantee Period Account.96 PROSPECTUS
EXAMPLE 1: (ASSUMES DECLINING INTEREST RATES) Step 1: Calculate Contract Value at = $10,000.00 X (1.045)/3/ = End of Contract Year 3: $11,411.66 Step 2: Calculate the Free Withdrawal = .15 X $10,000 = $1500 Amount: Step 3: Calculate the Withdrawal = .06 X ($10,000 - $1,500) = $510 Charge: Step 4: Calculate the Market Value I = 4.50% Adjustment: J = 4.20% 730 DAYS N = _________ = 2 365 DAYS Market Value Adjustment Factor: .9 X [I - (J + .0025)] X N = .9 X [.045 - (.042 + .0025)] X 2 = .0009 Market Value Adjustment = Market Value Adjustment Factor X Amount Subject To Market Value Adjustment = .0009 X $11,411.66 = $10.27 Step 5: Calculate the amount received = $11,411.66 - $510 + $10.27 = by Contract owner as a result of $10,911.93 full withdrawal at the end of Contract Year 3: * These examples assume the election of the Allstate Advisor Contract for the purpose of illustrating the Market Value Adjustment calculation. The amounts would be different under Allstate Advisor Plus and Allstate Advisor Preferred Contracts, which have different expenses and withdrawal charges. 97 PROSPECTUS
EXAMPLE 2: (ASSUMES RISING INTEREST RATES) Step 1: Calculate Contract Value at = $10,000.00 X (1.045)/3/ = End of Contract Year 3: $11,411.66 Step 2: Calculate the Free Withdrawal = .15 X $10,000 = $1500 Amount: Step 3: Calculate the Withdrawal = .06 X ($10,000 - $1,500) = $510 Charge: Step 4: Calculate the Market Value I = 4.50% Adjustment: J = 4.80% 730 DAYS N = _________ = 2 365 DAYS Market Value Adjustment Factor: .9 X [I - (J + .0025)] X N = .9 X [(.045 - (.048 + .0025)] X (2) = -.0099 Market Value Adjustment = Market Value Adjustment Factor X Amount Subject To Market Value Adjustment: = -.0099 X $11,411.66 = -($112.98) Step 5: Calculate the amount received = $11,411.66 - $510 - $112.98 = by Contract owner as a result of $10,788.68 full withdrawal at the end of Contract Year 3: APPENDIX C EXAMPLE OF CALCULATION OF INCOME PROTECTION BENEFIT - -------------------------------------------------------------------------------- Appendix C illustrates how we calculate the amount guaranteed under the Income Protection Benefit Option. Please remember that you are looking at an example only. Please also remember that the Income Protection Benefit Option may only be added to Income Plans 1 and/or 2, and only to those Income Plans for which you have selected variable income payments. To illustrate the calculation of the amount guaranteed under the Income Protection Benefit Option, we assume the following: The example assumes that the withdrawal charge period has expired for all purchase payments. In accordance with the terms of the Contract, the following additional assumptions apply:
Adjusted age of Annuitant on the Payout Start Date: 65 ------------------------------------------------------------------ Sex of Annuitant: male ------------------------------------------------------------------ Income Plan selected: 1 ------------------------------------------------------------------ Payment frequency: monthly ------------------------------------------------------------------ Amount applied to variable income payments under the Income Plan: $100,000.00 ------------------------------------------------------------------ STEP 1 - CALCULATION OF THE INITIAL VARIABLE AMOUNT INCOME VALUE: Using the assumptions stated above, the initial monthly income payment is $5.49 per $1,000 applied to variable income payments under Income Plan 1. Therefore, the initial variable amount income value = $100,000 X $5.49/1000 = $549.00. STEP 2 - CALCULATION OF THE AMOUNT GUARANTEED UNDER THE INCOME PROTECTION BENEFIT OPTION: guaranteed minimum variable income payment = 85% X initial variable amount income value = 85% X $549.00 = $466.65. STEP 3 - ILLUSTRATION OF THE EFFECT OF THE MINIMUM PAYMENT GUARANTEE UNDER THE INCOME PROTECTION BENEFIT OPTION: If in any month your variable income payments would fall below the amount guaranteed under the Income Protection Benefit Option, your payment for that month will equal the guaranteed minimum variable income payment. For example, you would receive $466.65 even if the amount of your monthly income payment would have been less than that as a result of declining investment experience. On the other hand, if your monthly income payment is greater than the minimum guaranteed $466.65, you would receive the greater amount. 98 PROSPECTUS
Assumed investment rate: 3% - ---------------------------------------------------------------------------------------------- Guaranteed minimum variable income payment: 85% of the initial variable a mount income value - ---------------------------------------------------------------------------------------------- APPENDIX D WITHDRAWAL ADJUSTMENT EXAMPLE - INCOME BENEFITS* - -------------------------------------------------------------------------------- Issue Date: January 1, 2003 Initial Purchase Payment: $50,000 (For Allstate Advisor Plus Contracts, assume a $2,000 Credit Enhancement would apply assuming issue age 85 or younger (a $1,000 Credit Enhancement would apply assuming issue age 86-90)) The following shows how we compute the adjusted income benefits in the example above. Please note that the withdrawal adjustment reduces the Maximum Anniversary Value by the same proportion as the withdrawal reduces the Contract Value. The withdrawal adjustment reduces the 5% Roll-Up Value part dollar-for-dollar and part proportionally.
Income Benefit Amount ------------------------------- 5% Roll-Up Value** ------------------ Beginning Contract Maximum Advisor Type of Contract Transaction Value After Anniversary and Date Occurrence Value Amount Occurrence Value Preferred Plus - ------------------------------------------------------------------------------------------------- 1/1/04 Contract Anniversary $ 55,000 _ $ 55,000 $ 55,000 $ 52,500 $54,600 - ------------------------------------------------------------------------------------------------- 7/1/04 Partial Withdrawal $ 60,000 $ 15,000 $ 45,000 $ 41,250 $ 40,176 $41,859 - -------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------- MAXIMUM ANNIVERSARY VALUE INCOME BENEFIT - ---------------------------------------------------------------------------------------------------------------- Partial Withdrawal Amount (a) - ---------------------------------------------------------------------------------------------------------------- Contract Value Immediately Prior to Partial Withdrawal (b) - ---------------------------------------------------------------------------------------------------------------- Value of Income Benefit Amount Immediately Prior to Partial Withdrawal (c) - ---------------------------------------------------------------------------------------------------------------- Withdrawal Adjustment [(a)/(b)]*(c) - ---------------------------------------------------------------------------------------------------------------- Adjusted Income Benefit - ---------------------------------------------------------------------------------------------------------------- 5 % ROLL-UP VALUE INCOME BENEFIT** - ---------------------------------------------------------------------------------------------------------------- Total Partial Withdrawal Amount (a) - ---------------------------------------------------------------------------------------------------------------- STEP I - DOLLAR FOR DOLLAR PORTION - ---------------------------------------------------------------------------------------------------------------- Contract Value Immediately Prior to Partial Withdrawal (b) - ---------------------------------------------------------------------------------------------------------------- Value of Income Benefit Amount Immediately Prior to Partial Withdrawal (assumes 181 days worth of interest on $52,500 and $54,600, respectively) (c) - ---------------------------------------------------------------------------------------------------------------- Partial Withdrawal Amount (Corridor = 5% of Roll-Up Value on 1/1/04) (d) - ---------------------------------------------------------------------------------------------------------------- Dollar for Dollar Withdrawal Adjustment (discounted for a half year's worth of interest) (e)=(d) * 1.05^ -0.5 - ---------------------------------------------------------------------------------------------------------------- Contract Value After Step 1 (b')=(b) - (d) - ---------------------------------------------------------------------------------------------------------------- Adjusted Income Benefit After Step 1 (c')=(c) - (e) - ---------------------------------------------------------------------------------------------------------------- STEP 2 - PROPORTIONAL PORTION - ---------------------------------------------------------------------------------------------------------------- Partial Withdrawal Amount (a')=(a) - (d) - ---------------------------------------------------------------------------------------------------------------- Proportional Adjustment (a')/(b')*(c') - ---------------------------------------------------------------------------------------------------------------- Contract Value After Step 2 (b') - (a') - ---------------------------------------------------------------------------------------------------------------- Adjusted Income Benefit After Step 2 - ---------------------------------------------------------------------------------------------------------------- * For purpose of illustrating the withdrawal adjustment calculation, the example assumes the same hypothetical Contract Values and Maximum Anniversary Value for all Contracts, net of applicable fees and charges. Actual income benefit amounts will differ due to the different fees and charges under each Contract and the Credit Enhancement available under the ALLSTATE ADVISOR PLUS CONTRACT. Please remember that you are looking at an example and that your investment performance may be greater or lower than the figures shown. **In certain states, the Roll-Up Value Income Benefit accumulates interest on a daily basis at a rate equivalent to 3% per year rather than 5%. If calculations assumed an interest rate of 3% per year, the adjusted income benefit would be lower. 99 PROSPECTUS
Advisor and Preferred Plus - ----------------------------------------------------------------------------------------------------------------------- MAXIMUM ANNIVERSARY VALUE INCOME BENEFIT - ----------------------------------------------------------------------------------------------------------------------- Partial Withdrawal Amount $15,000 $15,000 - ----------------------------------------------------------------------------------------------------------------------- Contract Value Immediately Prior to Partial Withdrawal $60,000 $60,000 - ----------------------------------------------------------------------------------------------------------------------- Value of Income Benefit Amount Immediately Prior to Partial Withdrawal $55,000 $55,000 - ----------------------------------------------------------------------------------------------------------------------- Withdrawal Adjustment $13,750 $13,750 - ----------------------------------------------------------------------------------------------------------------------- Adjusted Income Benefit $41,250 $41,250 - ----------------------------------------------------------------------------------------------------------------------- 5 % ROLL-UP VALUE INCOME BENEFIT** - ----------------------------------------------------------------------------------------------------------------------- Total Partial Withdrawal Amount $15,000 $15,000 - ----------------------------------------------------------------------------------------------------------------------- STEP I - DOLLAR FOR DOLLAR PORTION - ----------------------------------------------------------------------------------------------------------------------- Contract Value Immediately Prior to Partial Withdrawal $60,000 $60,000 - ----------------------------------------------------------------------------------------------------------------------- Value of Income Benefit Amount Immediately Prior to Partial Withdrawal (assumes 181 days worth of interest on $52,500 and $54,600, respectively) $53,786 $55,937 - ----------------------------------------------------------------------------------------------------------------------- Partial Withdrawal Amount (Corridor = 5% of Roll-Up Value on 1/1/04) $2,625 $2,730 - ----------------------------------------------------------------------------------------------------------------------- Dollar for Dollar Withdrawal Adjustment (discounted for a half year's worth of interest) $2,562 $2,664 - ----------------------------------------------------------------------------------------------------------------------- Contract Value After Step 1 $57,375 $57,270 - ----------------------------------------------------------------------------------------------------------------------- Adjusted Income Benefit After Step 1 $51,224 $53,273 - ----------------------------------------------------------------------------------------------------------------------- STEP 2 - PROPORTIONAL PORTION - ----------------------------------------------------------------------------------------------------------------------- Partial Withdrawal Amount $12,375 $12,270 - ----------------------------------------------------------------------------------------------------------------------- Proportional Adjustment $11,048 $11,414 - ----------------------------------------------------------------------------------------------------------------------- Contract Value After Step 2 $45,000 $45,000 - ----------------------------------------------------------------------------------------------------------------------- Adjusted Income Benefit After Step 2 $40,176 $41,859 - ----------------------------------------------------------------------------------------------------------------------- APPENDIX E WITHDRAWAL ADJUSTMENT EXAMPLE - DEATH BENEFITS* - -------------------------------------------------------------------------------- Issue Date: January 1, 2005 Initial Purchase Payment: $50,000 (For Allstate Advisor Plus Contracts, assume a $2,000 Credit Enhancement would apply assuming issue age 85 or younger (a $1,000 Credit Enhancement would apply assuming issue age 86-90)) The following shows how we compute the adjusted death benefits in the example above. Please note that the withdrawal reduces the Purchase Payment Value, the Maximum Anniversary Value, and the Enhanced Beneficiary Value by the same proportion as the withdrawal reduces the Contract Value.
Death Benefit Amount ------------------------------------------------------ Purchase Enhanced Payment Value Beneficiary Value** -------------------- -------------------- Beginning Contract Maximum Type of Contract Transaction Value After Advisor and Anniversary Advisor and Date Occurrence Value Amount Occurrence Preferred Plus Value Preferred Plus - ------------------------------------------------------------------------------------------------------------------------ 1/1/06 Contract Anniversary $ 55,000 _ $ 55,000 $ 50,000 $52,000 $ 55,000 $ 52,500 $54,600 - ------------------------------------------------------------------------------------------------------------------------ 7/1/06 Partial Withdrawal $ 60,000 $ 15,000 $ 45,000 $ 37,500 $39,000 $ 41,250 $ 40,339 $41,953 - ------------------------------------------------------------------------------------------------------------------------
Advisor and Preferred - ------------------------------------------------------------------------------------------------------------------------------ PURCHASE PAYMENT VALUE DEATH BENEFIT - ------------------------------------------------------------------------------------------------------------------------------ Partial Withdrawal Amount (a) $15,000 - ------------------------------------------------------------------------------------------------------------------------------ Contract Value Immediately Prior to Partial Withdrawal (b) $60,000 - ------------------------------------------------------------------------------------------------------------------------------ Value of Death Benefit Amount Immediately Prior to Partial Withdrawal (c) $50,000 - ------------------------------------------------------------------------------------------------------------------------------ Withdrawal Adjustment [(a)/(b)]*(c) $12,500 - ------------------------------------------------------------------------------------------------------------------------------ Adjusted Death Benefit $37,500 - ------------------------------------------------------------------------------------------------------------------------------ MAV DEATH BENEFIT - ------------------------------------------------------------------------------------------------------------------------------ Partial Withdrawal Amount (a) $15,000 - ------------------------------------------------------------------------------------------------------------------------------ Contract Value Immediately Prior to Partial Withdrawal (b) $60,000 - ------------------------------------------------------------------------------------------------------------------------------ Value of Death Benefit Amount Immediately Prior to Partial Withdrawal (c) $55,000 - ------------------------------------------------------------------------------------------------------------------------------ Withdrawal Adjustment [(a)/(b)]*(c) $13,750 - ------------------------------------------------------------------------------------------------------------------------------ Adjusted Death Benefit $41,250 - ------------------------------------------------------------------------------------------------------------------------------ ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) BENEFIT** - ------------------------------------------------------------------------------------------------------------------------------ Partial Withdrawal Amount (a) $15,000 - ------------------------------------------------------------------------------------------------------------------------------ Contract Value Immediately Prior to Partial Withdrawal (b) $60,000 - ------------------------------------------------------------------------------------------------------------------------------ Value of Death Benefit Amount Immediately Prior to Partial Withdrawal (assumes 181 days worth of interest on $52,500 and $54,600, respectively) (c) $53,786 - ------------------------------------------------------------------------------------------------------------------------------ Withdrawal Adjustment [(a)/(b)]*(c) $13,446 - ------------------------------------------------------------------------------------------------------------------------------ Adjusted Death Benefit $40,339 - ------------------------------------------------------------------------------------------------------------------------------ * For purpose of illustrating the withdrawal adjustment calculation, the example assumes the same hypothetical Contract Values and Maximum Anniversary Value for all Contracts, net of applicable fees and charges. Actual death benefit amounts will differ due to the different fees and charges under each Contract and the Credit Enhancement available under the ALLSTATE ADVISOR PLUS CONTRACT. Please remember that you are looking at an example and that your investment performance may be greater or lower than the figures shown. **Calculations for the Enhanced Beneficiary Protection (Annual Increase) Benefit assume that interest accumulates on a daily basis at a rate equivalent to 5% per year. In certain states, the Benefit provides for interest that accumulates at a rate of 3% per year. If calculations assumed an interest rate of 3% per year, the adjusted death benefit would be lower. 100 PROSPECTUS
Plus - ------------------------------------------------------------------------------------------------ PURCHASE PAYMENT VALUE DEATH BENEFIT - ------------------------------------------------------------------------------------------------ Partial Withdrawal Amount $15,000 - ------------------------------------------------------------------------------------------------ Contract Value Immediately Prior to Partial Withdrawal $60,000 - ------------------------------------------------------------------------------------------------ Value of Death Benefit Amount Immediately Prior to Partial Withdrawal $52,000 - ------------------------------------------------------------------------------------------------ Withdrawal Adjustment $13,000 - ------------------------------------------------------------------------------------------------ Adjusted Death Benefit $39,000 - ------------------------------------------------------------------------------------------------ MAV DEATH BENEFIT - ------------------------------------------------------------------------------------------------ Partial Withdrawal Amount $15,000 - ------------------------------------------------------------------------------------------------ Contract Value Immediately Prior to Partial Withdrawal $60,000 - ------------------------------------------------------------------------------------------------ Value of Death Benefit Amount Immediately Prior to Partial Withdrawal $55,000 - ------------------------------------------------------------------------------------------------ Withdrawal Adjustment $13,750 - ------------------------------------------------------------------------------------------------ Adjusted Death Benefit $41,250 - ------------------------------------------------------------------------------------------------ ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) BENEFIT** - ------------------------------------------------------------------------------------------------ Partial Withdrawal Amount $15,000 - ------------------------------------------------------------------------------------------------ Contract Value Immediately Prior to Partial Withdrawal $60,000 - ------------------------------------------------------------------------------------------------ Value of Death Benefit Amount Immediately Prior to Partial Withdrawal (assumes 181 days worth of interest on $52,500 and $54,600, respectively) $55,937 - ------------------------------------------------------------------------------------------------ Withdrawal Adjustment $13,984 - ------------------------------------------------------------------------------------------------ Adjusted Death Benefit $41,953 - ------------------------------------------------------------------------------------------------ APPENDIX F CALCULATION OF EARNINGS PROTECTION DEATH BENEFIT* - -------------------------------------------------------------------------------- The following are examples of the Earnings Protection Death Benefit Option. For illustrative purposes, the examples assume Earnings in each case. Please remember that you are looking at examples and that your investment performance may be greater or lower than the figures shown. EXAMPLE 1: ELECTED WHEN CONTRACT WAS ISSUED WITHOUT ANY SUBSEQUENT ADDITIONS OR WITHDRAWALS In this example, assume that the oldest Contract Owner is age 55 on the Rider Application Date and elects the Earnings Protection Death Benefit Option when the Contract is issued. The Contract Owner makes an initial purchase payment of $100,000. After four years, the Contract Owner dies. On the date Allstate Life receives a Complete Request for Settlement, the Contract Value is $125,000. Prior to his death, the Contract Owner did not make any additional purchase payments or take any withdrawals. Since In-Force Earnings are less than 100% of the In-Force Premium (excluding purchase payments and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS in the 12 months prior to death), the In-Force Earnings are used to compute the Earnings Protection Death Benefit amount. * For purposes of illustrating the calculation of Earnings Protection Death Benefit Option, the example assumes the same hypothetical Contract Values for all Contracts, net of applicable fees and charges. Actual death benefit amounts will differ due to the different fees and charges under each Contract and the Credit Enhancement available under the ALLSTATE ADVISOR PLUS CONTRACT. **If the oldest Contract Owner or Annuitant had been over age 70, and both were age 79 or younger on the Rider Application Date, the Earnings Protection Death Benefit would be 25% of the In-Force Earnings ($6,250.00). EXAMPLE 2: ELECTED WHEN CONTRACT WAS ISSUED WITH SUBSEQUENT WITHDRAWALS In this example, assume the same facts as above, except that the Contract Owner has taken a withdrawal of $10,000 during the second year of the Contract. Immediately prior to the withdrawal, the Contract Value is $105,000. Here, $5,000 of the withdrawal is in excess of the In-Force Earnings at the time of the withdrawal. The Contract Value on the date Allstate Life receives a Complete Request for Settlement will be assumed to be $114,000.
Excess of Earnings Withdrawals = $0 Purchase Payments in the 12 months prior to death = $0 In-Force Premium $100,000 = ($100,000+ $0 -$0) In-Force Earnings $25,000 = ($125,000-$100,000) EARNINGS PROTECTION DEATH BENEFIT** = 40% * $25,000 = $10,000 Since In-Force Earnings are less than 100% of the In-Force Premium (excluding purchase payments and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS in the 12 months prior to death), the In-Force Earnings are used to compute the Earnings Protection Death Benefit amount. * For purposes of illustrating the calculation of Earnings Protection Death Benefit Option, the example assumes the same hypothetical Contract Values for all Contracts, net of applicable fees and charges. Actual death benefit amounts will differ due to the different fees and charges under each Contract and the Credit Enhancement available under the ALLSTATE ADVISOR PLUS CONTRACT. **If the oldest Contract Owner or Annuitant had been over age 70, and both were age 79 or younger on the Rider Application Date, the Earnings Protection Death Benefit would be 25% of the In-Force Earnings ($4,750.00). EXAMPLE 3: ELECTED AFTER CONTRACT WAS ISSUED WITH SUBSEQUENT ADDITIONS AND WITHDRAWALS This example is intended to illustrate the effect of adding the Earnings Protection Death Benefit Option after the Contract has been issued and the effect of later purchase payments. In this example, assume that the oldest Contract Owner is age 72 on the Rider Application Date. At the time the Contract is issued, the Contract Owner makes a purchase payment of $100,000. After two years pass, the Contract Owner elects to add the Earnings Protection Death 101 PROSPECTUS
Excess of Earnings Withdrawals $5,000 = ($10,000-$5,000) Purchase Payments in the 12 months prior to death = $0 In-Force Premium $95,000 = ($100,000+$0-$5,000) In-Force Earnings $19,000 = ($114,000-$95,000) EARNINGS PROTECTION DEATH BENEFIT** = 40%*$19,000=$7,600 Benefit Option. On the date this Rider is added, the Contract Value is $110,000. Two years later, the Contract Owner withdraws $50,000. Immediately prior to the withdrawal, the Contract Value is $130,000. Another two years later, the Contract Owner makes an additional purchase payment of $40,000. Immediately after the additional purchase payment, the Contract Value is $130,000. Two years later, the Contract Owner dies with a Contract Value of $140,000 on the date Allstate Life receives a Complete Request for Settlement. In this example, In-Force Premium is equal to the Contract Value on Rider Application Date plus the additional purchase payment and minus the Excess-of-Earnings Withdrawal. Since In-Force Earnings are less than 50% of the In-Force Premium (excluding purchase payments and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS in the 12 months prior to death ), the In-Force Earnings are used to compute the Earnings Protection Death Benefit amount. * For purposes of illustrating the calculation of Earnings Protection Death Benefit Option, the example assumes the same hypothetical Contract Values for all Contracts, net of applicable fees and charges. Actual death benefit amounts will differ due to the different fees and charges under each Contract and the Credit Enhancement available under the ALLSTATE ADVISOR PLUS CONTRACT. * *If the oldest Contract Owner or Annuitant had been age 70 or younger on the Rider Application Date, the Earnings Protection Death Benefit would be 40% of the In-Force Earnings ($8,000.00) and Credit Enhancement for ALLSTATE ADVISOR PLUS CONTRACT. EXAMPLE 4: SPOUSAL CONTINUATION This example is intended to illustrate the effect of a surviving spouse electing to continue the Contract upon the death of the Contract Owner on a Contract with the Earnings Protection Death Benefit Option. In this example, assume that the oldest Contract Owner is age 60 at the time the Contract is purchased (with the Earnings Protection Death Benefit Option and MAV Death Benefit Option) with a $100,000 purchase payment. Five years later the Contract Owner dies and the surviving spouse elects to continue the Contract. The Contract Value and Maximum Anniversary Value at this time are $150,000 and $160,000, respectively.
Excess of Earnings Withdrawals $30,000 = ($50,000-$20,000) Purchase Payments in the 12 months prior to death = $0 In-Force Premium $120,000 = ($110,000+$40,000-$30,000) In-Force Earnings $20,000 = ($140,000-$120,000) EARNINGS PROTECTION DEATH BENEFIT** = 25%*$20,000=$5,000 Since In-Force Earnings are less than 100% of the In-Force Premium (excluding purchase payments and Credit Enhancements for ALLSTATE ADVISOR PLUS CONTRACTS in the 12 months prior to death), the In-Force Earnings are used to compute the Earnings Protection Death Benefit amount. Assume the surviving spouse is age 72 when the Contract is continued. At this time, the surviving spouse has the option to continue the Earnings Protection Death Benefit Option at an additional mortality and expense risk charge of 0.40% and with an In-Force Premium amount equal to the Contract Value and the Rider Date reset to the date the Contract is continued. If this selection is made, the Earnings Protection Death Benefit will be equal to the lesser of 25% of the In-Force Earnings and 50% of In-Force Premium. Otherwise, the surviving spouse may elect to terminate the Earnings Protection Death Benefit Option at the time of continuation. * For purposes of illustrating the calculation of Earnings Protection Death Benefit Option, the example assumes the same hypothetical Contract Values and Maximum Anniversary Values for all Contracts, net of applicable fees and charges. Actual death benefit amounts will differ due to the different fees and charges under each Contract and the Credit Enhancement available under the ALLSTATE ADVISOR PLUS CONTRACT. **If the oldest Contract Owner or Annuitant had been over age 70 , and both were age 79 or younger on the Rider Application Date, the Earnings Protection Death Benefit would be 25% of the In-Force Earnings ($12,500.00). 102 PROSPECTUS
Excess of Earnings Withdrawals = $0 Purchase Payments in the 12 months prior to death = $0 In-Force Premium $100,000 = ($100,000+$0-$0) In-Force Earnings $50,000 = ($150,000-$100,000) EARNINGS PROTECTION DEATH BENEFIT** = 40%*$50,000=$20,000 Contract Value = $150,000 Death Benefit = $160,000 Earnings Protection Death Benefit = $20,000 Continuing Contract Value $180,000 = ($160,000+$20,000) APPENDIX G - WITHDRAWAL ADJUSTMENT EXAMPLE - TRUERETURN ACCUMULATION BENEFIT* - -------------------------------------------------------------------------------- Issue Date: January 2, 2005 Initial Purchase Payment: $50,000 (For ALLSTATE ADVISOR PLUS CONTRACTS, assume a $2,000 Credit Enhancement would apply assuming issue age 85 or younger (a $1,000 Credit Enhancement would apply assuming issue age 86-90)) Initial Benefit Base: $50,000 for ALLSTATE ADVISOR AND ALLSTATE ADVISOR PREFERRED CONTRACTS, $52,000 for ALLSTATE ADVISOR PLUS CONTRACTS (assuming issue age 85 or younger) The following shows how we compute the adjusted Benefit Bases in the example above. Please note that the withdrawal reduces the Benefit Base by the same proportion as the withdrawal reduces the Contract Value.
Benefit Base ------------------- Purchase Payment Value ------------------- Beginning Contract Type of Contract Transaction Value After Advisor and Date Occurrence Value Amount Occurrence Preferred Plus - ----------------------------------------------------------------------------------- 1/2/06 Contract Anniversary $55,000 _ $55,000 $50,000 $52,000 - ----------------------------------------------------------------------------------- 7/2/06 Partial Withdrawal $60,000 $15,000 $45,000 $37,500 $39,000 - ----------------------------------------------------------------------------------- * For purpose of illustrating the withdrawal adjustment calculation, the example assumes the same hypothetical Contract Values, net of applicable fees and charges for all Contracts. Actual Contract Values will differ due to the different fees and charges under each Contract and the Credit Enhancement available under the ALLSTATE ADVISOR PLUS CONTRACT. Please remember that you are looking at an example and that your investment performance may be greater or lower than the figures shown. 103 PROSPECTUS
Advisor and Preferred Plus - ------------------------------------------------------------------------------------------------- BENEFIT BASE - ------------------------------------------------------------------------------------------------- Partial Withdrawal Amount (a) $15,000 $15,000 - ------------------------------------------------------------------------------------------------- Contract Value Immediately Prior to Partial Withdrawal (b) $60,000 $60,000 - ------------------------------------------------------------------------------------------------- Value of Benefit Base Immediately Prior to Partial Withdrawal (c) $50,000 $52,000 - ------------------------------------------------------------------------------------------------- Withdrawal Adjustment [(a)/(b)]*(c) $12,500 $13,000 - ------------------------------------------------------------------------------------------------- Adjusted Benefit Base $37,500 $39,000 - ------------------------------------------------------------------------------------------------- APPENDIX H - SUREINCOME WITHDRAWAL BENEFIT OPTION CALCULATION EXAMPLES - -------------------------------------------------------------------------------- Example 1: Assume you purchase an Allstate Advisor contract with a $100,000 initial purchase payment and add the SureIncome Option at issue. Your Benefit Base is $100,000, which is your initial purchase payment of $100,000. Your Benefit Payment is $8,000, which is 8% of your initial purchase payment. Your Benefit Payment Remaining for this Benefit Year is $8,000, which is equal to your Benefit Payment at the beginning of this Benefit Year. Example 2: Assume Example 1 is continued and an additional purchase payment of $40,000 is made in the first Benefit Year. The Benefit Base is increased to $140,000, which is your prior Benefit Base ($100,000) plus your additional purchase payment ($40,000). The Benefit Payment is increased to $11,200, which is your prior Benefit Payment ($8,000) plus 8% of your additional purchase payment ($40,000). The Benefit Payment Remaining is increased to $11,200, which is your Benefit Payment Remaining prior to your additional purchase payment ($8,000) plus 8% of your additional purchase payment ($40,000). Example 3: Assume Example 1 is continued and a withdrawal of $8,000 is made during the first Benefit Year. The Benefit Base is reduced to $92,000, which is your prior Benefit Base ($100,000) less your withdrawal ($8,000). The Benefit Payment is unchanged and remains $8,000. The Benefit Payment Remaining in the first Benefit Year is $0, which is your Benefit Payment Remaining prior to your withdrawal ($8,000) less your withdrawal ($8,000). Example 4: Assume example 1 is continued and a withdrawal of $25,000 is made during the first Benefit Year. Assume the Contract Value prior to the withdrawal was $130,000. Because the $25,000 withdrawal is larger than the Benefit Payment Remaining, the Benefit Base and Benefit Payment will be recalculated according to applicable formulas. The Benefit Base is reduced to $75,000, determined by the following calculation: the lesser of ($130,000 - $25,000) and ($100,000 - $25,000) = $75,000. The Benefit Payment remains $8,000, determined by the following calculation: the lesser of ($8,000) and (8% X ($130,000 - $25,000)) = $8,000 There is no Benefit Payment Remaining because the withdrawal has reduced it to $0. Example 5: Assume example 3 is continued and an additional withdrawal of $5,000 is taken in the same year (the first Benefit Year). Assume the Contract Value prior to the additional withdrawal was $60,000. Because the $5,000 withdrawal is larger than the Benefit Payment Remaining ($0), the Benefit Base and Benefit Payment will be recalculated according to applicable formulas. The Benefit Base is reduced to $55,000, determined by the following calculation: the lesser of ($60,000 - $5,000) and ($92,000 - $5,000) = $55,000. The Benefit Payment is reduced to $4,400, determined by the following formula: the lesser of ($8,000) and ((8% X ($60,000 - $5,000)) = $4,400. The Benefit Payment Remaining is unchanged at $0. Example 6: Assume example 5 is continued and an additional Purchase Payment of 40,000 is made in the same year (the first Benefit Year). The Benefit Base is increased to $95,000, which is your prior Benefit Base ($55,000) plus your additional purchase payment ($40,000). The Benefit Payment is increased to $7,600, which is your prior Benefit Payment ($4,400) plus 8% of your additional purchase payment ($40,000). 104 PROSPECTUS The Benefit Payment Remaining is increased to $3,200, which is your Benefit Payment Remaining prior to your additional purchase payment ($0) plus 8% of your additional purchase payment ($40,000). Example 7: Assume example 6 is continued and an additional withdrawal of $3,200 is taken in the same year (the first Benefit Year). The Benefit Base is reduced to $91,800, which is your prior Benefit Base ($95,000) less your withdrawal ($3,200). The Benefit Payment is unchanged and remains $7,600. The Benefit Payment Remaining is reduced to $0, which is your Benefit Payment Remaining prior to your withdrawal ($3,200) less your withdrawal ($3,200). 105 PROSPECTUS APPENDIX I - SUREINCOME PLUS WITHDRAWAL BENEFIT OPTION CALCULATION EXAMPLES - -------------------------------------------------------------------------------- Example 1: Assume you purchase an Allstate Advisor contract with a $100,000 initial purchase payment and add the SureIncome Plus Option at issue. Your Benefit Base is $100,000, which is your initial purchase payment of $100,000. Your SureIncome ROP Death Benefit is $100,000, which is your initial purchase payment of $100,000. Your Benefit Payment is $8,000, which is 8% of your initial purchase payment. Your Benefit Payment Remaining for this Benefit Year is $8,000, which is equal to your Benefit Payment at the beginning of this Benefit Year. Example 2: Assume Example 1 is continued and an additional purchase payment of $40,000 is made in the first Benefit Year. The Benefit Base is increased to $140,000, which is your prior Benefit Base ($100,000) plus your additional purchase payment ($40,000). The SureIncome ROP Death Benefit is increased to $140,000, which is your prior SureIncome ROP Death Benefit ($100,000) plus your additional purchase payment ($40,000). The Benefit Payment is increased to $11,200, which is your prior Benefit Payment ($8,000) plus 8% of your additional purchase payment ($40,000). The Benefit Payment Remaining is increased to $11,200, which is your Benefit Payment Remaining prior to your additional purchase payment ($8,000) plus 8% of your additional purchase payment ($40,000). Example 3: Assume Example 1 is continued and a withdrawal of $8,000 is made during the first Benefit Year. The Benefit Base is reduced to $92,000, which is your prior Benefit Base ($100,000) less your withdrawal ($8,000). The SureIncome ROP Death Benefit is reduced to $92,000, which is your prior SureIncome ROP Death Benefit ($100,000) less your withdrawal ($8,000). The Benefit Payment is unchanged and remains $8,000. The Benefit Payment Remaining in the first Benefit Year is $0, which is your Benefit Payment Remaining prior to your withdrawal ($8,000) less your withdrawal ($8,000). Example 4: Assume Example 1 is continued and a withdrawal of $25,000 is made during the first Benefit Year. Assume the Contract Value prior to the withdrawal was $130,000. Because the $25,000 withdrawal is larger than the Benefit Payment Remaining, the Benefit Base, the SureIncome ROP Death Benefit and Benefit Payment will be recalculated according to applicable formulas. The Benefit Base is reduced to $75,000, determined by the following calculation: the lesser of ($130,000 - $25,000) and ($100,000 - $25,000) = $75,000. The SureIncome ROP Death Benefit is reduced to $75,000, determined by the following calculation: the lesser of ($130,000 - $25,000) and ($100,000 - $25,000) = $75,000. The Benefit Payment remains $8,000, determined by the following calculation: the lesser of ($8,000) and (8% X ($130,000 - $25,000)) = $8,000 There is no Benefit Payment Remaining because the withdrawal has reduced it to $0. Example 5: Assume Example 3 is continued and an additional withdrawal of $5,000 is taken in the same year (the first Benefit Year). Assume the Contract Value prior to the additional withdrawal was $60,000. Because the $5,000 withdrawal is larger than the Benefit Payment Remaining ($0), the Benefit Base and Benefit Payment will be recalculated according to applicable formulas. The Benefit Base is reduced to $55,000, determined by the following calculation: the lesser of ($60,000 - $5,000) and ($92,000 - $5,000) = $55,000. The SureIncome ROP Death Benefit is reduced to $55,000, determined by the following calculation: the lesser of ($60,000 - $5,000) and ($92,000 - $5,000) = $55,000. 106 PROSPECTUS The Benefit Payment is reduced to $4,400, determined by the following formula: the lesser of ($8,000) and ((8% X ($60,000 - $5,000)) = $4,400. The Benefit Payment Remaining is unchanged at $0. Example 6: Assume Example 5 is continued and an additional Purchase Payment of 40,000 is made in the same year (the first Benefit Year). The Benefit Base is increased to $95,000, which is your prior Benefit Base ($55,000) plus your additional purchase payment ($40,000). The SureIncome ROP Death Benefit is increased to $95,000, which is your prior SureIncome ROP Death Benefit ($55,000) plus your additional purchase payment ($40,000). The Benefit Payment is increased to $7,600, which is your prior Benefit Payment ($4,400) plus 8% of your additional purchase payment ($40,000). The Benefit Payment Remaining is increased to $3,200, which is your Benefit Payment Remaining prior to your additional purchase payment ($0) plus 8% of your additional purchase payment ($40,000). Example 7: Assume Example 6 is continued and an additional withdrawal of $3,200 is taken in the same year (the first Benefit Year). The Benefit Base is reduced to $91,800, which is your prior Benefit Base ($95,000) less your withdrawal ($3,200). The SureIncome ROP Death Benefit is reduced to $91,800, which is your prior SureIncome ROP Death Benefit ($95,000) less your withdrawal ($3,200). The Benefit Payment is unchanged, because the amount withdrawn does not exceed the Benefit Payment Remaining, and remains $7,600. The Benefit Payment Remaining is reduced to $0, which is your Benefit Payment Remaining prior to your withdrawal ($3,200) less your withdrawal ($3,200). Example 8: Assume Example 1 is continued and on the first Contract Anniversary the Contract Value prior to deduction of annual fees is $160,000. The SureIncome Plus Option Fee is $650, which is 0.65% X the Benefit Base ($100,000) prior to updating the Benefit Base based on the Contract Value on the Contract Anniversary. The final Contract Value is $159,350, which the Contract Value on the Contract Anniversary after deduction of annual fees (assume SureIncome Plus Option Fee is the only annual fee applicable). The Benefit Base is increased to $159,350, which is the greater of your current Benefit Base ($100,000) and the final Contract Value on the Contract Anniversary ($159,350). The SureIncome ROP Death Benefit remains $100,000. The Benefit Payment is increased to $12,748, which is the greater of your current Benefit Payment ($8,000) and 8% X the final Contract Value on the Contract Anniversary ($159,350). The Benefit Payment Remaining is updated to $12,748, which is the Benefit Payment on the Contract Anniversary. Example 9: Assume Example 8 is continued, no withdrawals or purchase payments are applied during the second Contract Year and on the second Contract Anniversary the Contract Value prior to deduction of annual fees is $60,000. The SureIncome Plus Option Fee is $1,035.78, which is 0.65% X the Benefit Base ($159,350) prior to updating the Benefit Base based on the Contract Value on the Contract Anniversary. The final Contract Value is $58,964.22, which the Contract Value on the Contract Anniversary after deduction of annual fees (assume SureIncome Plus Option Fee is the only annual fee applicable). The Benefit Base remains $159,350, which is the greater of your current Benefit Base ($159,350) and the final Contract Value on the Contract Anniversary ($58,964.22). The SureIncome ROP Death Benefit remains $100,000. The Benefit Payment is remains $12,748, which is the greater of your current Benefit Payment $12,748 and 8% X the final Contract Value on the Contract Anniversary ($58,964.22). The Benefit Payment Remaining is updated to $12,748, which is the Benefit Payment on the Contract Anniversary. 107 PROSPECTUS APPENDIX J - SUREINCOME FOR LIFE WITHDRAWAL BENEFIT OPTION CALCULATION EXAMPLES - -------------------------------------------------------------------------------- Example 1: Assume you purchase an Allstate Advisor contract with $100,000 initial purchase payment, are attained age 55 at issue, and add the SureIncome For Life Option at issue (you are the SureIncome Covered Life). Your Benefit Base is $100,000, which is your initial purchase payment of $100,000. Your SureIncome ROP Death Benefit is $100,000, which is your initial purchase payment of $100,000. Your Benefit Payment is $4,000, which is 4% of your initial purchase payment. Your Benefit Payment Remaining for this Benefit Year is $4,000, which is equal to your Benefit Payment at the beginning of this Benefit Year. Note: The Benefit Payment remains $4,000 until you turn age 60 (as long as the Contract Value on any of the prior Contract Anniversaries have not caused any of the guarantees under the Option to be updated). At that point, if no withdrawals have been taken, your Benefit Payment & Benefit Payment Remaining are updated to 5% X current Benefit Base ($5,000 = 5% X $100,000, assuming your Benefit Base is still $100,000). Example 2: Assume Example 1 is continued and an additional purchase payment of $40,000 is made in the first Benefit Year. The Benefit Base is increased to $140,000, which is your prior Benefit Base ($100,000) plus your additional purchase payment ($40,000). The SureIncome ROP Death Benefit is increased to $140,000, which is your prior SureIncome ROP Death Benefit ($100,000) plus your additional purchase payment ($40,000). The Benefit Payment is increased to $5,600, which is your prior Benefit Payment ($4,000) plus 4% of your additional purchase payment ($40,000). The Benefit Payment Remaining is increased to $5,600, which is your prior Benefit Payment Remaining ($4,000) plus 4% of your additional purchase payment ($40,000). Note: The Benefit Payment remains $5,600 until you turn age 60 (for the purposes of this example it is assumed the maximum anniversary value on any of the prior Contract Anniversaries has not increased the Benefit Payment). At that point, if no withdrawals have been taken, your Benefit Payment & Benefit Payment Remaining are updated to 5% X current Benefit Base ($7,000 = 5% X $140,000, assuming your Benefit Base is still $140,000). Example 3a: Assume Example 1 is continued and the first withdrawal, equal to $4,000, is made during the first Benefit Year. The Benefit Base is reduced to $96,000, which is your prior Benefit Base ($100,000) less your withdrawal ($4,000). The SureIncome ROP Death Benefit is reduced to $96,000, which is your prior SureIncome ROP Death Benefit ($100,000) less your withdrawal ($4,000). The Benefit Payment is unchanged and remains $4,000. The Benefit Payment Remaining in the first Benefit Year is $0, which is your Benefit Payment Remaining prior to your withdrawal ($4,000) less your withdrawal ($4,000). Note: The Withdrawal Benefit Factor is locked at 4% because the age at first withdrawal is age 55. Example 3b: Assume Example 1 is continued and the first withdrawal, equal to $5,000, is made during the sixth Benefit Year and you have attained age 60 (assume the Contract Values have not increased any SureIncome For Life Option guarantees on any prior Contract Anniversaries). The Benefit Base is reduced to $95,000, which is your prior Benefit Base ($100,000) less your withdrawal ($5,000). The SureIncome ROP Death Benefit is reduced to $95,000, which is your prior SureIncome ROP Death Benefit ($100,000) less your withdrawal ($5,000). Because the first withdrawal occurs at attained age 60, the Benefit Payment and Benefit Payment Remaining prior to the withdrawal are updated to 5% X current Benefit Base (5% X $100,000 = $5,000). The Benefit Payment remains $5,000 after withdrawal. 108 PROSPECTUS The Benefit Payment Remaining in the first Benefit Year is $0, which is your Benefit Payment Remaining prior to your withdrawal ($5,000) less your withdrawal ($5,000). Note: The Withdrawal Benefit Factor is locked at 5% because the age at first withdrawal is age 60. Example 3c: Assume Example 1 is continued and the first withdrawal, equal to $6,000, is made during the sixteenth Benefit Year and you have attained age 70 (assume the Contract Values have not increased any SureIncome For Life Option guarantees on any prior Contract Anniversaries). The Benefit Base is reduced to $94,000, which is your prior Benefit Base ($100,000) less your withdrawal ($6,000). The SureIncome ROP Death Benefit is reduced to $94,000, which is your prior SureIncome ROP Death Benefit ($100,000) less your withdrawal ($6,000). Because the first withdrawal occurs at attained age 70, the Benefit Payment and Benefit Payment Remaining prior to the withdrawal are updated to 6% X current Benefit Base (6% X $100,000 = $6,000). The Benefit Payment remains $6,000 after withdrawal. The Benefit Payment Remaining in the first Benefit Year is $0, which is your Benefit Payment Remaining prior to your withdrawal ($6,000) less your withdrawal ($6,000). Note: The Withdrawal Benefit Factor is locked at 6% because the age at first withdrawal is age 70. Example 4a: Assume Example 1 is continued and a withdrawal of $25,000 is made during the first Benefit Year. Assume the Contract Value prior to the withdrawal was $130,000. Because the $25,000 withdrawal is larger than the Benefit Payment Remaining, the Benefit Base, the SureIncome ROP Death Benefit and Benefit Payment will be recalculated according to applicable formulas. The Benefit Base is reduced to $75,000, determined by the following calculation: the lesser of ($130,000 - $25,000) and ($100,000 - $25,000) = $75,000. The SureIncome ROP Death Benefit is reduced to $75,000, determined by the following calculation: the lesser of ($130,000 - $25,000) and ($100,000 - $25,000) = $75,000. The Benefit Payment is reduced to $3,000, determined by the following calculation: the lesser of ($4,000) and (4% X $75,000) = $3,000. There is no Benefit Payment Remaining because the withdrawal has reduced it to $0. Note: The Withdrawal Benefit Factor is locked at 4% because the age at first withdrawal is age 55. Example 4b: Assume Example 1 is continued and a withdrawal of $25,000 is made during the sixth Benefit Year (assume the Contract Values have not increased any SureIncome For Life Option guarantees on any prior Contract Anniversaries). Assume the Contract Value prior to the withdrawal was $130,000. Because the $25,000 withdrawal is larger than the Benefit Payment Remaining, the Benefit Base, the SureIncome ROP Death Benefit and Benefit Payment will be recalculated according to applicable formulas. The Benefit Base is reduced to $75,000, determined by the following calculation: the lesser of ($130,000 - $25,000) and ($100,000 - $25,000) = $75,000. The SureIncome ROP Death Benefit is reduced to $75,000, determined by the following calculation: the lesser of ($130,000 - $25,000) and ($100,000 - $25,000) = $75,000. Because the first withdrawal occurs at attained age 60, the Benefit Payment and Benefit Payment Remaining prior to the withdrawal are updated to 5% X current Benefit Base prior to the withdrawal (5% X $100,000 = $5,000). The Benefit Payment is reduced to $3,750, determined by the following calculation: the lesser of ($5,000) and (5% X $75,000) = $3,750. There is no Benefit Payment Remaining because the withdrawal has reduced it to $0. Note: The Withdrawal Benefit Factor is locked at 5% because the age at first withdrawal is age 60. Example 5: Assume Example 3a is continued and an additional withdrawal of $5,000 is taken in the same year (the first Benefit Year). Assume the Contract Value prior to the additional withdrawal was $60,000. Because the $5,000 withdrawal is larger than the Benefit Payment Remaining ($0), the Benefit Base and Benefit Payment will be recalculated according to applicable formulas. 109 PROSPECTUS The Benefit Base is reduced to $55,000, determined by the following calculation: the lesser of ($60,000 - $5,000) and ($96,000 - $5,000) = $55,000. The SureIncome ROP Death Benefit is reduced to $55,000, determined by the following calculation: the lesser of ($60,000 - $5,000) and ($96,000 - $5,000) = $55,000. The Benefit Payment is reduced to $2,200, determined by the following formula: the lesser of ($4,000) and (4% X $55,000) = $2,200. Example 6: Assume Example 5 is continued and an additional Purchase Payment of 40,000 is made in the same year (the first Benefit Year). The Benefit Base is increased to $95,000, which is your prior Benefit Base ($55,000) plus your additional purchase payment ($40,000). The SureIncome ROP Death Benefit is increased to $95,000, which is your prior SureIncome ROP Death Benefit ($55,000) plus your additional purchase payment ($40,000). The Benefit Payment is increased to $3,800, which is your prior Benefit Payment ($2,200) plus 4% of your additional purchase payment ($40,000). The Benefit Payment Remaining is increased to $1,600, which is your Benefit Payment Remaining prior to your additional purchase payment ($0) plus 4% of your additional purchase payment ($40,000). Example 7: Assume Example 6 is continued and an additional withdrawal of $1,600 is taken in the same year (the first Benefit Year). The Benefit Base is reduced to $93,400, which is your prior Benefit Base ($95,000) less your withdrawal ($1,600). The SureIncome ROP Death Benefit is reduced to $93,400, which is your prior SureIncome ROP Death Benefit ($95,000) less your withdrawal ($1,600). The Benefit Payment is unchanged and remains $3,800. The Benefit Payment Remaining is reduced to $0, which is your Benefit Payment Remaining prior to your withdrawal ($1,600) less your withdrawal ($1,600). Example 8: Assume Example 1 is continued and on the first Contract Anniversary the Contract Value prior to deduction of annual fees is $160,000. The SureIncome For Life Option Fee is $650, which is 0.65% X the Benefit Base ($100,000) prior to updating the Benefit Base based on the Contract Value on the Contract Anniversary. The final Contract Value is $159,350, which the Contract Value on the Contract Anniversary after deduction of annual fees (assume SureIncome For Life Option Fee is the only annual fee applicable). The Benefit Base is increased to $159,350, which is the greater of your current Benefit Base ($100,000) and the final Contract Value on the Contract Anniversary ($159,350). The SureIncome ROP Death Benefit remains $100,000. The Benefit Payment is increased to $6,374, which is the greater of your current Benefit Payment ($4,000) and 4% of the final Contract Value on the Contract Anniversary ($159,350). The Benefit Payment Remaining is updated to $6,374, which is the Benefit Payment on the Contract Anniversary. Note: The Benefit Payment remains $6,374 until you turn age 60 (as long as the Contract Values on any of the prior Contract Anniversaries have not caused any of the guarantees under the Option to be updated). At that point, if no withdrawals have been taken, your Benefit Payment and Benefit Payment Remaining are updated to 5% X current Benefit Base ($7,967.50 = 5% X $159,350, assuming your Benefit Base is still $159,350). Example 9: Assume Example 8 is continued, no withdrawals or purchase payments are applied during the second Contract Year and on the second Contract Anniversary the Contract Value prior to deduction of annual fees is $60,000. The SureIncome For Life Option Fee is $1,035.78, which is 0.65% X the Benefit Base ($159,350) prior to updating for the Benefit Base based on the Contract Value on the Contract Anniversary. The final Contract Value is $58,964.22, which the Contract Value on the Contract Anniversary after deduction of annual fees (assume SureIncome For Life Option Fee is the only annual fee applicable). 110 PROSPECTUS The Benefit Base is remains $159,350, which is the greater of your current Benefit Base ($159,350) and the final Contract Value on the Contract Anniversary ($58,964.22). The SureIncome ROP Death Benefit remains $100,000. The Benefit Payment is remains $6,374, which is the greater of your current Benefit Payment $6,374 and 4% X the final Contract Value on the Contract Anniversary ($58,964.22). The Benefit Payment Remaining is updated to $6,374, which is the Benefit Payment on the Contract Anniversary. 111 PROSPECTUS APPENDIX K - ACCUMULATION UNIT VALUES - -------------------------------------------------------------------------------- Appendix K presents the Accumulation Unit Values and number of Accumulation Units outstanding for each Variable Sub-Account since the Variable Sub-Accounts were first offered under the Contracts. This Appendix includes Accumulation Unit Values representing the highest and lowest available combinations of Contract charges that affect Accumulation Unit Values for each Contract. The Statement of Additional Information, which is available upon request without charge, contains the Accumulation Unit Values for all other available combinations of Contract charges that affect Accumulation Unit Values for each Contract. Please contact us at 1-800-457-7617 to obtain a copy of the Statement of Additional Information. The Allstate Advisor, Allstate Advisor Plus, Allstate Advisor Preferred with No Withdrawal Charge Option, Allstate Advisor Preferred with the 3 year Withdrawal Charge Option and Allstate Advisor Preferred with the 5 year Withdrawal Charge Option Contracts were first offered on October 14, 2002. The Allstate Advisor, Allstate Advisor Plus and Allstate Advisor Preferred Contracts were first offered with the MAV Death Benefit Option at 0.15% or the Enhanced Beneficiary Protection (Annual Increase) Option at 0.15%, with the Earnings Protection Death Benefit Option, with the MAV Death Benefit Option at 0.15% and the Enhanced Beneficiary Protection (Annual Increase) Option at 0.15%, with the Earnings Protection Death Benefit Option, the MAV Death Benefit Option at 0.15% and the Enhanced Beneficiary Protection (Annual Increase) Option at 0.15%, with the MAV Death Benefit Option at 0.15% and with the Earnings Protection Death Benefit Option, with the MAV Death Benefit Option at 0.15%, the Enhanced Beneficiary Protection (Annual Increase) Option at 0.15%, and the Earnings Protection Death Benefit Option, with the Enhanced Beneficiary Protection (Annual Increase) Option at 0.15% and the Earnings Protection Death Benefit Option on October 14, 2002. The Earnings Protection Death Benefit Option, the MAV Death Benefit Option at 0.20%, and the Enhanced Beneficiary Protection (Annual Increase) Option at 0.30%, Contracts with the MAV Death Benefit Option at 0.20%, the Enhanced Beneficiary Protection (Annual Increase) Option at 0.30%, Contracts with the MAV Death Benefit Option at 0.20% and the Enhanced Beneficiary Protection (Annual Increase) Option at 0.15%, Contracts with the MAV Death Benefit Option at 0.20% and the Enhanced Beneficiary Protection (Annual Increase) Option at 0.30%, the MAV Death Benefit Option at 0.20% was first offered on May 1, 2003. All of the Variable Sub-Accounts shown below were first offered under the Contracts on October 14, 2002, except for the Oppenheimer Capital Appreciation/VA - Service Shares Sub-Account and UIF Small Company Growth, Class II Sub-Accounts which were first offered under the Contracts on May 1, 2003, the Van Kampen LIT Money Market, Class II Sub-Account and UIF Global Franchise, Class II Sub-Accounts, which were first offered under the Contracts on December 31, 2003, and the FTVIP Franklin Income Securities - Class 2 Sub-Account, FTVIP Franklin U.S. Government - Class 2 Sub-Account, Van Kampen LIT Mid Cap Growth, Class II Sub-Account, Van Kampen LIT Comstock, Class II Sub-Account, UIF Equity and Income, Class II Sub-Account, UIF Capital Growth, Class I Sub-Account and UIF Capital Growth, Class II Sub-Account, and UIF U.S. Mid Cap Value, Class I Sub-Account and UIF U.S. Mid Cap Value, Class II Sub-Accounts, which were first offered under the Contracts on May 1, 2004 and the FTVIP Franklin Large Cap Growth Securities - Class 2 Sub-Account, Lord Abbett Series Fund - All Value Portfolio, Lord Abbett Series Fund - Bond-Debenture Portfolio, Lord Abbett Series Fund - Growth and Income Portfolio, Lord Abbett Series Fund - Growth Opportunities Portfolio, Lord Abbett Series Fund - Mid-Cap Value Portfolio and Oppenheimer Core Bond/VA - Service Shares Sub-Account which were first offered with the Contracts on October 1, 2004, and the Fidelity VIP Contrafund - Service Class 2 Sub-Account, Fidelity VIP Freedom 2010 - Service Class 2 Sub-Account, Fidelity VIP Freedom 2020 - Service Class 2 Sub-Account, Fidelity VIP Freedom 2030 - Service Class 2 Sub-Account, Fidelity VIP Freedom Income - Service Class 2 Sub-Account, Fidelity VIP Growth Stock - Service Class 2 Sub-Account, Fidelity VIP Index 500 - - Service Class 2 Sub-Account, Fidelity VIP Mid Cap - Service Class 2 Sub-Account, FTVIP Mutual Global Discovery Securities Fund - Class 2 Sub-Account and UIF U.S. Mid Cap Value, Class II Sub-Account, which were first offered under the Contracts on May 1, 2006 and the Putnam VT Equity Income Fund - - Class IB Sub-Account which was first offered under the Contracts on February 13, 2009. The names of the following Sub-Accounts changed since December 31, 2009. The names shown in the tables of Accumulation Units correspond to the name of the Sub-Account as of December 31, 2009: SUB-ACCOUNT NAME AS OF DECEMBER 31, 2009 (AS APPEARS IN THE FOLLOWING TABLES OF ACCUMULATION UNIT VALUES) SUB-ACCOUNT NAME AS OF MAY 1, 2010 ----------------------------------------------------------------------------- Oppenheimer MidCap Fund/VA Oppenheimer Small- & Mid-Cap Growth Fund/VA Oppenheimer Strategic Bond Fund/VA Oppenheimer Global Strategic Income Fund/VA Lord Abbett Series Fund Inc. - All Lord Abbett Series Fund Inc. - Value Portfolio Fundamental Equity Portfolio ----------------------------------------------------------------------------- On February 13, 2009, the Putnam VT New Value Fund - Class IB reorganized into the Putnam VT Equity Income Fund - Class IB. As a result, the Putnam VT New Value Fund - Class IB Sub-Account is no longer available for investment. However, accumulation unit values for the Sub-Account are included in the tables below because the Sub-Account was available during part of 2009. 112 PROSPECTUS ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 113 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.291 516,451 2007 $10.291 $11.915 1,004,070 2008 $11.915 $6.740 1,144,313 2009 $6.740 $9.013 1,143,620 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.483 24,455 2007 $10.483 $11.218 70,102 2008 $11.218 $8.287 116,207 2009 $8.287 $10.139 172,093 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.513 54,334 2007 $10.513 $11.411 128,871 2008 $11.411 $7.569 140,536 2009 $7.569 $9.604 203,822 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.522 14,031 2007 $10.522 $11.536 28,063 2008 $11.536 $7.040 56,210 2009 $7.040 $9.116 73,240 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.373 16,899 2007 $10.373 $10.845 48,727 2008 $10.845 $9.559 65,357 2009 $9.559 $10.817 76,108 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.766 19,226 2007 $9.766 $11.790 53,608 2008 $11.790 $6.427 72,235 2009 $6.427 $9.163 57,801 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.846 45,567 2007 $10.846 $11.260 270,300 2008 $11.260 $6.985 264,109 2009 $6.985 $8.708 239,770 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.899 102,347 2007 $9.899 $11.269 251,766 2008 $11.269 $6.718 256,868 2009 $6.718 $9.267 223,401 - ------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.860 4,339 2003 $10.860 $13.475 576,019 2004 $13.475 $14.713 1,237,251 2005 $14.713 $15.034 1,509,644 2006 $15.034 $17.328 1,376,859 2007 $17.328 $16.469 1,236,047 2008 $16.469 $10.543 1,065,952 2009 $10.543 $13.170 897,010 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 114 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.263 550,454 2005 $11.263 $11.297 2,186,987 2006 $11.297 $13.185 3,300,784 2007 $13.185 $13.503 4,027,508 2008 $13.503 $9.376 3,310,458 2009 $9.376 $12.550 2,996,804 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.533 43,535 2005 $10.533 $10.508 812,179 2006 $10.508 $11.503 1,735,490 2007 $11.503 $12.061 2,114,492 2008 $12.061 $7.795 1,887,340 2009 $7.795 $9.982 1,654,042 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2002 $10.000 $11.545 882 2003 $11.545 $15.641 21,349 2004 $15.641 $17.211 21,824 2005 $17.211 $17.803 21,130 2006 $17.803 $19.101 20,318 2007 $19.101 $20.973 17,140 2008 $20.973 $11.904 19,245 2009 $11.904 $16.871 13,500 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2002 $10.000 $11.235 2,864 2003 $11.235 $14.653 211,298 2004 $14.653 $17.899 454,938 2005 $17.899 $19.217 704,731 2006 $19.217 $22.191 787,501 2007 $22.191 $21.382 728,134 2008 $21.382 $14.137 614,342 2009 $14.137 $18.024 529,315 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.274 268,158 2005 $10.274 $10.385 454,107 2006 $10.385 $10.664 553,564 2007 $10.664 $11.221 643,995 2008 $11.221 $11.917 756,472 2009 $11.917 $12.127 776,465 - ---------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $11.041 179,990 2007 $11.041 $12.189 443,786 2008 $12.189 $8.608 486,057 2009 $8.608 $10.478 507,819 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 115 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2002 $10.000 $10.333 6,303 2003 $10.333 $12.765 442,689 2004 $12.765 $14.192 1,161,162 2005 $14.192 $15.488 1,757,967 2006 $15.488 $18.099 2,186,968 2007 $18.099 $18.486 2,266,150 2008 $18.486 $11.476 1,861,389 2009 $11.476 $14.279 1,641,649 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2002 $10.000 $11.243 112 2003 $11.243 $16.979 43,987 2004 $16.979 $20.902 127,960 2005 $20.902 $26.292 215,039 2006 $26.292 $33.244 254,473 2007 $33.244 $42.259 259,442 2008 $42.259 $19.728 230,730 2009 $19.728 $33.609 208,582 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2002 $10.000 $10.484 1,995 2003 $10.484 $13.683 141,338 2004 $13.683 $16.009 352,761 2005 $16.009 $17.410 841,251 2006 $17.410 $20.872 1,384,661 2007 $20.872 $23.785 1,600,147 2008 $23.785 $13.998 1,393,105 2009 $13.998 $18.936 1,204,940 - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.730 1,065 2003 $10.730 $12.969 27,419 2004 $12.969 $14.688 28,702 2005 $14.688 $14.052 29,443 2006 $14.052 $15.643 24,121 2007 $15.643 $17.139 24,104 2008 $17.139 $17.968 21,379 2009 $17.968 $21.050 15,757 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.920 15,276 2005 $10.920 $11.529 148,760 2006 $11.529 $13.047 258,059 2007 $13.047 $13.743 281,424 2008 $13.743 $9.676 252,224 2009 $9.676 $12.033 221,340 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.370 81,198 2005 $10.370 $10.371 533,540 2006 $10.371 $11.192 959,024 2007 $11.192 $11.731 1,203,223 2008 $11.731 $9.549 982,893 2009 $9.549 $12.660 854,149 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 116 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.904 142,509 2005 $10.904 $11.114 674,689 2006 $11.114 $12.866 977,874 2007 $12.866 $13.135 1,131,948 2008 $13.135 $8.243 923,149 2009 $8.243 $9.675 791,390 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.153 16,581 2005 $11.153 $11.518 103,190 2006 $11.518 $12.268 307,914 2007 $12.268 $14.685 401,093 2008 $14.685 $8.952 360,805 2009 $8.952 $12.861 300,712 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.136 136,025 2005 $11.136 $11.896 867,902 2006 $11.896 $13.179 1,058,446 2007 $13.179 $13.084 1,096,947 2008 $13.084 $7.832 921,170 2009 $7.832 $9.789 759,217 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.069 1,697 2003 $10.069 $12.468 147,767 2004 $12.468 $14.698 230,665 2005 $14.698 $16.248 310,149 2006 $16.248 $16.472 334,836 2007 $16.472 $17.240 269,795 2008 $17.240 $8.643 234,531 2009 $8.643 $11.284 198,239 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2002 $10.000 $10.706 2,115 2003 $10.706 $13.176 259,159 2004 $13.176 $14.280 562,275 2005 $14.280 $14.614 694,753 2006 $14.614 $15.992 687,270 2007 $15.992 $16.335 626,947 2008 $16.335 $9.092 534,080 2009 $9.092 $10.913 442,615 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.118 16,015 2005 $10.118 $10.221 198,046 2006 $10.221 $10.587 1,022,486 2007 $10.587 $10.877 1,758,893 2008 $10.877 $6.541 1,767,178 2009 $6.541 $7.041 1,796,199 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 117 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.323 250,178 2004 $12.323 $12.968 723,531 2005 $12.968 $13.424 1,303,079 2006 $13.424 $14.269 1,418,096 2007 $14.269 $16.036 1,252,093 2008 $16.036 $8.601 1,194,919 2009 $8.601 $12.239 987,395 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2002 $10.000 $10.157 45 2003 $10.157 $14.323 200,904 2004 $14.323 $16.808 384,682 2005 $16.808 $18.924 533,061 2006 $18.924 $21.924 560,411 2007 $21.924 $22.956 551,050 2008 $22.956 $13.521 457,046 2009 $13.521 $18.599 380,350 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2002 $10.000 $10.670 1,293 2003 $10.670 $13.039 199,763 2004 $13.039 $13.995 512,385 2005 $13.995 $14.092 642,887 2006 $14.092 $15.194 651,221 2007 $15.194 $14.926 646,720 2008 $14.926 $3.157 1,119,834 2009 $3.157 $3.925 1,062,342 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2002 $10.000 $10.186 4,827 2003 $10.186 $12.713 432,829 2004 $12.713 $13.696 752,941 2005 $13.696 $14.296 1,271,750 2006 $14.296 $16.195 1,689,212 2007 $16.195 $16.649 1,682,353 2008 $16.649 $10.086 1,583,489 2009 $10.086 $12.743 1,388,113 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.363 944 2003 $10.363 $14.755 156,683 2004 $14.755 $17.358 294,993 2005 $17.358 $18.799 490,871 2006 $18.799 $21.278 570,415 2007 $21.278 $20.709 531,717 2008 $20.709 $12.673 481,521 2009 $12.673 $17.124 406,889 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 118 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------ OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2002 $10.000 $10.560 10,218 2003 $10.560 $12.213 432,449 2004 $12.213 $13.072 1,265,037 2005 $13.072 $13.224 2,210,765 2006 $13.224 $13.998 2,542,348 2007 $13.998 $15.136 2,521,268 2008 $15.136 $12.777 2,111,548 2009 $12.777 $14.933 1,944,138 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2002 $10.000 $10.397 46 2003 $10.397 $12.510 27,406 2004 $12.510 $13.473 100,508 2005 $13.473 $14.227 225,972 2006 $14.227 $15.850 289,761 2007 $15.850 $16.104 302,756 2008 $16.104 $10.599 251,413 2009 $10.599 $14.146 218,816 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $10.807 10,128 2003 $10.807 $13.589 581,918 2004 $13.589 $14.904 872,350 2005 $14.904 $15.482 894,861 2006 $15.482 $17.714 859,159 2007 $17.714 $16.428 786,066 2008 $16.428 $9.941 664,580 2009 $9.941 $12.738 561,812 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2002 $10.000 $9.732 4,020 2003 $9.732 $11.373 87,288 2004 $11.373 $12.026 143,322 2005 $12.026 $13.438 121,045 2006 $13.438 $13.636 106,651 2007 $13.636 $13.378 90,746 2008 $13.378 $10.951 75,485 2009 $10.951 $13.620 67,222 - ------------------------------------------------------------------------------------------------------ PUTNAM VT HIGH YIELD FUND--CLASS IB 2002 $10.000 $10.750 2,077 2003 $10.750 $13.428 238,535 2004 $13.428 $14.652 421,723 2005 $14.652 $14.911 615,143 2006 $14.911 $16.269 729,961 2007 $16.269 $16.506 684,787 2008 $16.506 $12.046 602,387 2009 $12.046 $17.858 499,764 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 119 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- PUTNAM VT INCOME FUND--CLASS IB 2002 $10.000 $10.194 10,364 2003 $10.194 $10.507 486,154 2004 $10.507 $10.832 887,522 2005 $10.832 $10.945 1,526,481 2006 $10.945 $11.292 2,193,099 2007 $11.292 $11.728 2,340,081 2008 $11.728 $8.807 1,903,327 2009 $8.807 $12.749 1,506,639 - ------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2002 $10.000 $10.613 3,753 2003 $10.613 $13.465 172,681 2004 $13.465 $15.444 250,483 2005 $15.444 $17.105 336,711 2006 $17.105 $21.566 486,115 2007 $21.566 $23.067 661,099 2008 $23.067 $12.762 606,992 2009 $12.762 $15.700 541,864 - ------------------------------------------------------------------------------------------------- PUTNAM VT INVESTORS FUND--CLASS IB 2002 $10.000 $10.416 3,968 2003 $10.416 $13.072 94,549 2004 $13.072 $14.535 111,067 2005 $14.535 $15.611 170,882 2006 $15.611 $17.558 226,431 2007 $17.558 $16.435 231,530 2008 $16.435 $9.807 198,173 2009 $9.807 $12.664 169,347 - ------------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2002 $10.000 $9.993 5,773 2003 $9.993 $9.914 239,378 2004 $9.914 $9.851 611,958 2005 $9.851 $9.970 1,639,066 2006 $9.970 $10.274 3,059,102 2007 $10.274 $10.626 2,741,531 2008 $10.626 $10.759 2,353,459 2009 $10.759 $10.642 2,823,769 - ------------------------------------------------------------------------------------------------- PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2002 $10.000 $10.388 2,917 2003 $10.388 $13.580 115,558 2004 $13.580 $14.787 110,548 2005 $14.787 $16.056 99,940 2006 $16.056 $17.206 86,751 2007 $17.206 $17.958 73,981 2008 $17.958 $10.858 54,204 2009 $10.858 $14.162 45,582 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 120 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT NEW VALUE FUND--CLASS IB 2002 $10.000 $11.214 114 2003 $11.214 $14.664 77,578 2004 $14.664 $16.708 251,024 2005 $16.708 $17.465 540,431 2006 $17.465 $20.001 692,321 2007 $20.001 $18.777 765,754 2008 $18.777 $10.239 738,975 2009 $10.239 $9.644 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT RESEARCH FUND--CLASS IB 2002 $10.000 $10.651 5 2003 $10.651 $13.177 56,293 2004 $13.177 $13.990 84,821 2005 $13.990 $14.502 82,817 2006 $14.502 $15.935 78,283 2007 $15.935 $15.817 64,794 2008 $15.817 $9.594 55,482 2009 $9.594 $12.614 53,463 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2002 $10.000 $10.524 6,824 2003 $10.524 $12.158 384,959 2004 $12.158 $12.986 698,080 2005 $12.986 $13.332 897,148 2006 $13.332 $14.729 1,002,203 2007 $14.729 $14.677 940,566 2008 $14.677 $8.588 845,676 2009 $8.588 $10.649 741,293 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $11.480 377 2003 $11.480 $14.145 50,148 2004 $14.145 $16.978 84,872 2005 $16.978 $18.197 74,344 2006 $18.197 $22.819 58,275 2007 $22.819 $27.015 46,926 2008 $27.015 $18.535 34,349 2009 $18.535 $19.642 25,751 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND--CLASS IB 2002 $10.000 $10.381 2,612 2003 $10.381 $13.646 97,780 2004 $13.646 $15.976 138,680 2005 $15.976 $17.687 165,471 2006 $17.687 $18.411 161,338 2007 $18.411 $18.865 145,788 2008 $18.865 $10.140 122,422 2009 $10.140 $13.887 100,418 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 121 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND--CLASS IB 2002 $10.000 $10.118 8,458 2003 $10.118 $12.475 496,984 2004 $12.475 $12.934 797,854 2005 $12.934 $13.494 889,274 2006 $13.494 $14.045 777,631 2007 $14.045 $14.628 651,974 2008 $14.628 $9.092 538,276 2009 $9.092 $14.709 443,055 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.153 148,068 2005 $11.153 $12.233 145,429 2006 $12.233 $12.670 126,259 2007 $12.670 $14.706 101,130 2008 $14.706 $7.718 83,765 2009 $7.718 $11.913 73,374 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.366 214,722 2005 $11.366 $11.681 1,023,815 2006 $11.681 $13.381 1,184,603 2007 $13.381 $12.900 1,155,302 2008 $12.900 $8.175 1,015,402 2009 $8.175 $10.362 818,910 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2002 $10.000 $9.418 62 2003 $9.418 $11.811 128,295 2004 $11.811 $12.448 253,189 2005 $12.448 $13.227 318,205 2006 $13.227 $13.399 325,314 2007 $13.399 $15.427 267,235 2008 $15.427 $7.749 254,421 2009 $7.749 $12.669 208,247 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2002 $10.000 $10.662 3,897 2003 $10.662 $13.437 400,708 2004 $13.437 $15.137 755,669 2005 $15.137 $16.394 1,052,880 2006 $16.394 $18.769 1,148,378 2007 $18.769 $18.993 1,130,145 2008 $18.993 $12.709 959,755 2009 $12.709 $15.569 840,508 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.925 437,391 2005 $9.925 $10.036 679,120 2006 $10.036 $10.319 805,399 2007 $10.319 $10.640 838,651 2008 $10.640 $10.690 865,848 2009 $10.690 $10.558 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 122 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2002 $10.000 $11.069 33 2003 $11.069 $13.960 23,912 2004 $13.960 $15.169 159,393 2005 $15.169 $16.791 269,922 2006 $16.791 $18.365 347,798 2007 $18.365 $19.286 364,955 2008 $19.286 $16.185 298,917 2009 $16.185 $20.788 263,398 - ------------------------------------------------------------------------------------------------- UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.989 202,603 2005 $10.989 $11.648 888,555 2006 $11.648 $12.945 950,381 2007 $12.945 $13.206 1,069,714 2008 $13.206 $10.079 932,139 2009 $10.079 $12.187 817,049 - ------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.785 242,720 2005 $10.785 $12.319 220,659 2006 $12.319 $12.660 194,105 2007 $12.660 $15.233 144,366 2008 $15.233 $7.640 148,384 2009 $7.640 $12.486 108,902 - ------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.760 76,401 2005 $10.760 $12.265 144,014 2006 $12.265 $12.569 151,518 2007 $12.569 $15.094 140,241 2008 $15.094 $7.547 137,100 2009 $7.547 $12.302 111,308 - ------------------------------------------------------------------------------------------------- UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $11.131 130,721 2005 $11.131 $12.304 391,691 2006 $12.304 $14.758 650,901 2007 $14.758 $15.992 703,140 2008 $15.992 $11.217 598,573 2009 $11.217 $14.346 505,053 - ------------------------------------------------------------------------------------------------- UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.853 356,563 2007 $9.853 $11.924 563,913 2008 $11.924 $6.260 598,655 2009 $6.260 $9.724 461,143 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.1 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.10% and an administrative expense charge of 0.19%. 123 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.621 49,008 2004 $13.621 $15.993 76,697 2005 $15.993 $17.821 119,544 2006 $17.821 $19.674 125,802 2007 $19.674 $19.994 118,154 2008 $19.994 $11.755 110,064 2009 $11.755 $17.016 88,845 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.330 226,309 2005 $11.330 $12.560 209,221 2006 $12.560 $14.965 194,883 2007 $14.965 $15.930 208,857 2008 $15.930 $9.232 177,447 2009 $9.232 $12.685 155,724 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.323 123,762 2005 $11.323 $12.535 227,659 2006 $12.535 $14.926 352,246 2007 $14.926 $15.873 433,653 2008 $15.873 $9.178 417,880 2009 $9.178 $12.607 336,485 - ------------------------------------------------------------------------------------------------ UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2002 $10.000 $10.710 4,083 2003 $10.710 $14.601 143,509 2004 $14.601 $19.611 7,395 2005 $19.611 $22.602 584,676 2006 $22.602 $30.715 637,273 2007 $30.715 $25.080 650,191 2008 $25.080 $15.335 623,745 2009 $15.335 $19.450 541,734 - ------------------------------------------------------------------------------------------------ PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $13.066 632,085 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 124 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.228 0 2007 $10.228 $11.733 0 2008 $11.733 $6.577 1,365 2009 $6.577 $8.714 1,352 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.419 0 2007 $10.419 $11.048 0 2008 $11.048 $8.086 0 2009 $8.086 $9.803 0 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.448 0 2007 $10.448 $11.237 0 2008 $11.237 $7.385 0 2009 $7.385 $9.286 0 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.457 0 2007 $10.457 $11.360 0 2008 $11.360 $6.870 0 2009 $6.870 $8.814 0 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.310 0 2007 $10.310 $10.679 0 2008 $10.679 $9.327 0 2009 $9.327 $10.459 0 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.706 0 2007 $9.706 $11.610 0 2008 $11.610 $6.271 0 2009 $6.271 $8.859 0 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.779 0 2007 $10.779 $11.088 0 2008 $11.088 $6.815 1,208 2009 $6.815 $8.419 1,208 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.838 709 2007 $9.838 $11.097 0 2008 $11.097 $6.555 109 2009 $6.555 $8.960 91 - ------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2003 $10.698 $13.341 3,763 2004 $13.341 $14.434 5,784 2005 $14.434 $14.615 5,058 2006 $14.615 $16.691 4,637 2007 $16.691 $15.718 4,538 2008 $15.718 $9.971 3,695 2009 $9.971 $12.342 3,527 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 125 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.194 119 2005 $11.194 $11.126 1,886 2006 $11.126 $12.868 1,638 2007 $12.868 $13.057 1,622 2008 $13.057 $8.984 7,209 2009 $8.984 $11.915 5,661 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.509 60 2005 $10.509 $10.389 1,272 2006 $10.389 $11.269 1,792 2007 $11.269 $11.708 1,763 2008 $11.708 $7.497 2,046 2009 $7.497 $9.513 842 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2003 $11.821 $15.485 0 2004 $15.485 $16.884 0 2005 $16.884 $17.306 0 2006 $17.306 $18.400 0 2007 $18.400 $20.018 0 2008 $20.018 $11.258 0 2009 $11.258 $15.810 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2003 $11.039 $14.507 7,052 2004 $14.507 $17.559 4,525 2005 $17.559 $18.682 3,877 2006 $18.682 $21.377 3,743 2007 $21.377 $20.408 3,681 2008 $20.408 $13.370 1,603 2009 $13.370 $16.890 1,578 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.211 518 2005 $10.211 $10.228 1,905 2006 $10.228 $10.406 1,858 2007 $10.406 $10.850 1,879 2008 $10.850 $11.418 3,303 2009 $11.418 $11.513 3,742 - ---------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $10.974 0 2007 $10.974 $12.004 0 2008 $12.004 $8.400 950 2009 $8.400 $10.131 950 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 126 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2003 $10.599 $12.638 12,747 2004 $12.638 $13.923 12,480 2005 $13.923 $15.057 13,367 2006 $15.057 $17.435 12,578 2007 $17.435 $17.644 12,151 2008 $17.644 $10.853 4,560 2009 $10.853 $13.381 3,358 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2003 $11.674 $16.810 0 2004 $16.810 $20.505 0 2005 $20.505 $25.559 282 2006 $25.559 $32.024 282 2007 $32.024 $40.334 281 2008 $40.334 $18.657 783 2009 $18.657 $31.496 474 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2003 $10.377 $13.547 285 2004 $13.547 $15.705 580 2005 $15.705 $16.925 1,448 2006 $16.925 $20.105 1,415 2007 $20.105 $22.702 1,379 2008 $22.702 $13.239 1,360 2009 $13.239 $17.745 261 - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2003 $11.583 $12.839 0 2004 $12.839 $14.409 0 2005 $14.409 $13.660 0 2006 $13.660 $15.069 0 2007 $15.069 $16.358 0 2008 $16.358 $16.993 0 2009 $16.993 $19.726 0 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.895 58 2005 $10.895 $11.398 692 2006 $11.398 $12.782 693 2007 $12.782 $13.341 673 2008 $13.341 $9.307 729 2009 $9.307 $11.468 693 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.347 0 2005 $10.347 $10.253 260 2006 $10.253 $10.965 516 2007 $10.965 $11.387 513 2008 $11.387 $9.184 1,345 2009 $9.184 $12.066 1,324 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 127 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.880 1,259 2005 $10.880 $10.988 1,565 2006 $10.988 $12.604 1,490 2007 $12.604 $12.750 2,366 2008 $12.750 $7.928 2,290 2009 $7.928 $9.220 1,350 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.127 0 2005 $11.127 $11.388 27 2006 $11.388 $12.018 0 2007 $12.018 $14.255 603 2008 $14.255 $8.610 593 2009 $8.610 $12.258 105 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.110 1,275 2005 $11.110 $11.761 1,271 2006 $11.761 $12.912 1,298 2007 $12.912 $12.701 1,209 2008 $12.701 $7.533 138 2009 $7.533 $9.329 128 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2003 $10.337 $12.344 678 2004 $12.344 $14.419 677 2005 $14.419 $15.795 834 2006 $15.795 $15.867 832 2007 $15.867 $16.455 831 2008 $16.455 $8.174 829 2009 $8.174 $10.574 813 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2003 $11.104 $13.045 973 2004 $13.045 $14.009 3,172 2005 $14.009 $14.206 3,195 2006 $14.206 $15.405 3,150 2007 $15.405 $15.591 3,216 2008 $15.591 $8.598 3,352 2009 $8.598 $10.226 3,564 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.095 0 2005 $10.095 $10.105 0 2006 $10.105 $10.371 0 2007 $10.371 $10.558 0 2008 $10.558 $6.291 0 2009 $6.291 $6.711 1,325 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 128 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.248 33 2004 $12.248 $12.772 1,597 2005 $12.772 $13.100 838 2006 $13.100 $13.799 978 2007 $13.799 $15.365 957 2008 $15.365 $8.166 703 2009 $8.166 $11.513 178 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2003 $10.079 $14.181 237 2004 $14.181 $16.489 227 2005 $16.489 $18.397 575 2006 $18.397 $21.119 571 2007 $21.119 $21.910 738 2008 $21.910 $12.787 730 2009 $12.787 $17.429 168 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2003 $11.727 $12.909 1,353 2004 $12.909 $13.729 4,420 2005 $13.729 $13.698 4,804 2006 $13.698 $14.636 4,537 2007 $14.636 $14.246 4,579 2008 $14.246 $2.985 5,281 2009 $2.985 $3.678 3,968 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2003 $10.460 $12.586 2,396 2004 $12.586 $13.437 4,635 2005 $13.437 $13.898 5,645 2006 $13.898 $15.601 5,949 2007 $15.601 $15.890 5,788 2008 $15.890 $9.539 5,841 2009 $9.539 $11.941 4,397 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2003 $10.710 $14.608 2,493 2004 $14.608 $17.029 1,308 2005 $17.029 $18.275 1,603 2006 $18.275 $20.496 1,193 2007 $20.496 $19.766 1,204 2008 $19.766 $11.985 1,162 2009 $11.985 $16.046 1,186 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 129 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------ OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2003 $11.243 $12.091 4,270 2004 $12.091 $12.824 8,589 2005 $12.824 $12.855 10,133 2006 $12.855 $13.484 10,777 2007 $13.484 $14.446 10,148 2008 $14.446 $12.083 7,832 2009 $12.083 $13.994 5,592 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2003 $10.748 $12.385 0 2004 $12.385 $13.218 116 2005 $13.218 $13.831 2,636 2006 $13.831 $15.268 2,800 2007 $15.268 $15.371 2,792 2008 $15.371 $10.024 2,790 2009 $10.024 $13.257 2,774 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2003 $10.989 $13.454 1,648 2004 $13.454 $14.621 1,792 2005 $14.621 $15.050 2,221 2006 $15.050 $17.064 2,310 2007 $17.064 $15.680 2,411 2008 $15.680 $9.401 1,319 2009 $9.401 $11.937 1,262 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2003 $10.230 $11.260 0 2004 $11.260 $11.798 0 2005 $11.798 $13.063 0 2006 $13.063 $13.135 0 2007 $13.135 $12.769 0 2008 $12.769 $10.356 0 2009 $10.356 $12.764 0 - ------------------------------------------------------------------------------------------------------ PUTNAM VT HIGH YIELD FUND--CLASS IB 2003 $11.861 $13.294 1,125 2004 $13.294 $14.374 4,411 2005 $14.374 $14.495 3,459 2006 $14.495 $15.671 3,201 2007 $15.671 $15.754 3,211 2008 $15.754 $11.392 1,049 2009 $11.392 $16.735 1,632 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 130 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- PUTNAM VT INCOME FUND--CLASS IB 2003 $10.352 $10.403 2,859 2004 $10.403 $10.626 10,273 2005 $10.626 $10.639 11,645 2006 $10.639 $10.877 12,594 2007 $10.877 $11.194 12,384 2008 $11.194 $8.329 7,522 2009 $8.329 $11.948 4,690 - ------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2003 $10.571 $13.331 3,933 2004 $13.331 $15.151 1,561 2005 $15.151 $16.628 1,446 2006 $16.628 $20.774 1,480 2007 $20.774 $22.016 1,750 2008 $22.016 $12.069 750 2009 $12.069 $14.712 725 - ------------------------------------------------------------------------------------------------- PUTNAM VT INVESTORS FUND--CLASS IB 2003 $10.688 $12.942 417 2004 $12.942 $14.259 3,302 2005 $14.259 $15.176 2,975 2006 $15.176 $16.913 2,889 2007 $16.913 $15.686 2,800 2008 $15.686 $9.274 2,641 2009 $9.274 $11.867 2,515 - ------------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2003 $9.933 $9.815 158 2004 $9.815 $9.664 7,242 2005 $9.664 $9.692 8,142 2006 $9.692 $9.897 9,943 2007 $9.897 $10.142 8,870 2008 $10.142 $10.175 6,205 2009 $10.175 $9.973 7,393 - ------------------------------------------------------------------------------------------------- PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2003 $10.975 $13.445 196 2004 $13.445 $14.506 489 2005 $14.506 $15.609 82 2006 $15.609 $16.574 80 2007 $16.574 $17.140 76 2008 $17.140 $10.268 0 2009 $10.268 $13.271 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 131 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT NEW VALUE FUND--CLASS IB 2003 $11.317 $14.518 107 2004 $14.518 $16.391 948 2005 $16.391 $16.978 905 2006 $16.978 $19.267 1,051 2007 $19.267 $17.922 1,086 2008 $17.922 $9.683 880 2009 $9.683 $9.110 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT RESEARCH FUND--CLASS IB 2003 $10.837 $13.046 124 2004 $13.046 $13.725 580 2005 $13.725 $14.098 619 2006 $14.098 $15.350 639 2007 $15.350 $15.096 661 2008 $15.096 $9.074 563 2009 $9.074 $11.820 502 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2003 $10.678 $12.037 4,283 2004 $12.037 $12.740 5,947 2005 $12.740 $12.960 4,812 2006 $12.960 $14.188 4,957 2007 $14.188 $14.008 5,071 2008 $14.008 $8.122 5,017 2009 $8.122 $9.980 5,280 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2003 $11.642 $14.004 118 2004 $14.004 $16.656 265 2005 $16.656 $17.690 261 2006 $17.690 $21.981 253 2007 $21.981 $25.785 223 2008 $25.785 $17.530 217 2009 $17.530 $18.407 207 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND--CLASS IB 2003 $10.794 $13.510 434 2004 $13.510 $15.673 969 2005 $15.673 $17.194 524 2006 $17.194 $17.735 528 2007 $17.735 $18.005 523 2008 $18.005 $9.590 509 2009 $9.590 $13.014 490 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 132 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND--CLASS IB 2003 $10.574 $12.351 5,778 2004 $12.351 $12.688 2,080 2005 $12.688 $13.118 2,864 2006 $13.118 $13.529 3,165 2007 $13.529 $13.961 3,139 2008 $13.961 $8.598 1,766 2009 $8.598 $13.784 1,946 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.084 1,694 2005 $11.084 $12.047 1,655 2006 $12.047 $12.364 1,701 2007 $12.364 $14.220 1,542 2008 $14.220 $7.394 1,675 2009 $7.394 $11.310 1,536 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.297 0 2005 $11.297 $11.505 232 2006 $11.505 $13.059 434 2007 $13.059 $12.474 1,335 2008 $12.474 $7.832 1,417 2009 $7.832 $9.837 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2003 $9.925 $11.693 1,278 2004 $11.693 $12.212 0 2005 $12.212 $12.858 0 2006 $12.858 $12.907 0 2007 $12.907 $14.724 0 2008 $14.724 $7.328 0 2009 $7.328 $11.872 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2003 $10.775 $13.304 1,395 2004 $13.304 $14.850 1,131 2005 $14.850 $15.937 849 2006 $15.937 $18.080 980 2007 $18.080 $18.128 1,006 2008 $18.128 $12.019 1,053 2009 $12.019 $14.590 351 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.835 4,172 2005 $9.835 $9.854 3,349 2006 $9.854 $10.040 2,852 2007 $10.040 $10.257 2,651 2008 $10.257 $10.212 2,030 2009 $10.212 $9.997 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 133 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2003 $12.285 $13.821 0 2004 $13.821 $14.881 1,477 2005 $14.881 $16.322 1,382 2006 $16.322 $17.691 1,351 2007 $17.691 $18.407 1,247 2008 $18.407 $15.307 1,282 2009 $15.307 $19.481 925 - ------------------------------------------------------------------------------------------------- UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.922 0 2005 $10.922 $11.472 222 2006 $11.472 $12.633 0 2007 $12.633 $12.770 0 2008 $12.770 $9.657 188 2009 $9.657 $11.570 0 - ------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.719 388 2005 $10.719 $12.133 407 2006 $12.133 $12.355 443 2007 $12.355 $14.730 430 2008 $14.730 $7.320 1,747 2009 $7.320 $11.854 1,642 - ------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.694 1,255 2005 $10.694 $12.080 1,700 2006 $12.080 $12.266 1,083 2007 $12.266 $14.595 864 2008 $14.595 $7.231 0 2009 $7.231 $11.679 0 - ------------------------------------------------------------------------------------------------- UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $11.030 0 2005 $11.030 $12.081 0 2006 $12.081 $14.359 475 2007 $14.359 $15.417 475 2008 $15.417 $10.715 0 2009 $10.715 $13.579 0 - ------------------------------------------------------------------------------------------------- UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.793 0 2007 $9.793 $11.743 0 2008 $11.743 $6.108 1,756 2009 $6.108 $9.402 1,568 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.0 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 2.00% and an administrative expense charge of 0.19%. 134 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.538 1,345 2004 $13.538 $15.751 1,461 2005 $15.751 $17.392 1,402 2006 $17.392 $19.025 1,359 2007 $19.025 $19.158 1,371 2008 $19.158 $11.161 1,449 2009 $11.161 $16.008 1,333 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.260 1,108 2005 $11.260 $12.370 1,052 2006 $12.370 $14.605 952 2007 $14.605 $15.404 928 2008 $15.404 $8.845 934 2009 $8.845 $12.043 483 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.254 1,042 2005 $11.254 $12.345 1,564 2006 $12.345 $14.566 1,463 2007 $14.566 $15.348 1,384 2008 $15.348 $8.794 1,071 2009 $8.794 $11.969 854 - ------------------------------------------------------------------------------------------------ UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2003 $11.376 $14.455 1,499 2004 $14.455 $19.239 2,484 2005 $19.239 $21.972 2,279 2006 $21.972 $29.588 1,822 2007 $29.588 $23.938 2,051 2008 $23.938 $14.502 1,387 2009 $14.502 $18.226 1,178 - ------------------------------------------------------------------------------------------------ PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $12.244 422 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 135 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.270 283,913 2007 $10.270 $11.854 439,032 2008 $11.854 $6.685 480,294 2009 $6.685 $8.913 414,170 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.462 4,820 2007 $10.462 $11.161 4,337 2008 $11.161 $8.219 21,445 2009 $8.219 $10.026 20,638 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.491 3,082 2007 $10.491 $11.353 24,445 2008 $11.353 $7.507 76,943 2009 $7.507 $9.497 42,398 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.500 11,481 2007 $10.500 $11.477 15,501 2008 $11.477 $6.983 16,534 2009 $6.983 $9.015 14,671 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.352 519 2007 $10.352 $10.789 26,730 2008 $10.789 $9.481 28,748 2009 $9.481 $10.696 42,972 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.746 5,960 2007 $9.746 $11.730 9,721 2008 $11.730 $6.375 14,136 2009 $6.375 $9.061 11,849 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.824 20,407 2007 $10.824 $11.203 123,148 2008 $11.203 $6.928 109,337 2009 $6.928 $8.611 97,080 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.879 86,590 2007 $9.879 $11.212 104,391 2008 $11.212 $6.663 132,298 2009 $6.663 $9.164 126,233 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 136 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.853 903 2003 $10.853 $13.425 204,532 2004 $13.425 $14.614 239,720 2005 $14.614 $14.888 216,067 2006 $14.888 $17.107 540,890 2007 $17.107 $16.210 496,501 2008 $16.210 $10.345 358,524 2009 $10.345 $12.884 320,788 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.240 20,529 2005 $11.240 $11.240 107,691 2006 $11.240 $13.079 1,218,293 2007 $13.079 $13.354 1,368,496 2008 $13.354 $9.244 1,325,003 2009 $9.244 $12.335 1,176,879 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.525 5,010 2005 $10.525 $10.468 53,966 2006 $10.468 $11.425 762,291 2007 $11.425 $11.943 867,606 2008 $11.943 $7.695 791,913 2009 $7.695 $9.824 661,491 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2002 $10.000 $11.538 290 2003 $11.538 $15.583 12,058 2004 $15.583 $17.095 23,996 2005 $17.095 $17.630 21,758 2006 $17.630 $18.858 10,502 2007 $18.858 $20.643 7,403 2008 $20.643 $11.681 7,971 2009 $11.681 $16.505 6,474 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2002 $10.000 $11.228 1,221 2003 $11.228 $14.599 109,873 2004 $14.599 $17.778 78,714 2005 $17.778 $19.031 91,305 2006 $19.031 $21.909 293,264 2007 $21.909 $21.046 271,427 2008 $21.046 $13.873 238,542 2009 $13.873 $17.632 203,382 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.253 9,294 2005 $10.253 $10.333 19,913 2006 $10.333 $10.577 187,553 2007 $10.577 $11.096 248,011 2008 $11.096 $11.748 319,693 2009 $11.748 $11.919 489,931 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 137 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $11.019 119,365 2007 $11.019 $12.127 189,293 2008 $12.127 $8.538 209,202 2009 $8.538 $10.362 204,171 - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2002 $10.000 $10.327 4,512 2003 $10.327 $12.718 203,839 2004 $12.718 $14.097 154,189 2005 $14.097 $15.338 187,550 2006 $15.338 $17.869 682,906 2007 $17.869 $18.195 703,665 2008 $18.195 $11.261 570,057 2009 $11.261 $13.969 456,695 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2002 $10.000 $11.236 101 2003 $11.236 $16.917 58,107 2004 $16.917 $20.762 14,136 2005 $20.762 $26.037 17,133 2006 $26.037 $32.822 112,374 2007 $32.822 $41.594 130,198 2008 $41.594 $19.358 97,736 2009 $19.358 $32.879 82,067 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2002 $10.000 $10.477 1,484 2003 $10.477 $13.633 79,873 2004 $13.633 $15.902 59,175 2005 $15.902 $17.241 93,972 2006 $17.241 $20.606 530,191 2007 $20.606 $23.411 597,641 2008 $23.411 $13.736 554,748 2009 $13.736 $18.525 462,135 - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.723 0 2003 $10.723 $12.921 3,305 2004 $12.921 $14.589 8,097 2005 $14.589 $13.916 7,980 2006 $13.916 $15.444 3,331 2007 $15.444 $16.870 3,277 2008 $16.870 $17.632 4,741 2009 $17.632 $20.593 16,455 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 138 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.912 5,559 2005 $10.912 $11.485 7,084 2006 $11.485 $12.958 137,579 2007 $12.958 $13.608 130,324 2008 $13.608 $9.552 134,300 2009 $9.552 $11.842 109,583 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.363 5,743 2005 $10.363 $10.332 42,214 2006 $10.332 $11.116 348,673 2007 $11.116 $11.615 442,802 2008 $11.615 $9.426 376,145 2009 $9.426 $12.459 332,066 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.896 1,993 2005 $10.896 $11.072 40,840 2006 $11.072 $12.778 435,257 2007 $12.778 $13.006 437,477 2008 $13.006 $8.137 375,485 2009 $8.137 $9.521 333,553 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.144 268 2005 $11.144 $11.475 7,646 2006 $11.475 $12.184 104,562 2007 $12.184 $14.541 150,622 2008 $14.541 $8.837 157,421 2009 $8.837 $12.658 127,029 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.127 1,679 2005 $11.127 $11.851 48,962 2006 $11.851 $13.090 439,310 2007 $13.090 $12.955 414,136 2008 $12.955 $7.732 385,510 2009 $7.732 $9.634 313,448 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.063 6 2003 $10.063 $12.422 43,239 2004 $12.422 $14.600 24,359 2005 $14.600 $16.090 27,814 2006 $16.090 $16.263 59,133 2007 $16.263 $16.969 58,286 2008 $16.969 $8.481 43,515 2009 $8.481 $11.038 34,131 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 139 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2002 $10.000 $10.699 381 2003 $10.699 $13.128 118,638 2004 $13.128 $14.184 99,388 2005 $14.184 $14.472 112,333 2006 $14.472 $15.789 286,137 2007 $15.789 $16.078 289,544 2008 $16.078 $8.921 200,630 2009 $8.921 $10.676 127,991 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.110 18 2005 $10.110 $10.182 6,577 2006 $10.182 $10.515 416,500 2007 $10.515 $10.770 725,278 2008 $10.770 $6.457 718,452 2009 $6.457 $6.929 739,474 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.298 127,891 2004 $12.298 $12.903 60,080 2005 $12.903 $13.316 80,633 2006 $13.316 $14.111 831,237 2007 $14.111 $15.810 733,219 2008 $15.810 $8.454 552,440 2009 $8.454 $11.993 462,878 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2002 $10.000 $10.150 1,468 2003 $10.150 $14.270 71,158 2004 $14.270 $16.695 79,066 2005 $16.695 $18.740 73,144 2006 $18.740 $21.645 182,436 2007 $21.645 $22.595 161,936 2008 $22.595 $13.267 117,070 2009 $13.267 $18.195 102,975 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2002 $10.000 $10.663 2,578 2003 $10.663 $12.991 158,346 2004 $12.991 $13.901 108,252 2005 $13.901 $13.955 102,339 2006 $13.955 $15.000 226,400 2007 $15.000 $14.691 214,333 2008 $14.691 $3.098 410,839 2009 $3.098 $3.840 412,793 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 140 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2002 $10.000 $10.179 776 2003 $10.179 $12.666 331,015 2004 $12.666 $13.604 209,165 2005 $13.604 $14.157 230,257 2006 $14.157 $15.989 723,778 2007 $15.989 $16.387 716,425 2008 $16.387 $9.897 655,439 2009 $9.897 $12.466 584,230 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.356 1,102 2003 $10.356 $14.701 95,842 2004 $14.701 $17.242 57,383 2005 $17.242 $18.617 65,352 2006 $18.617 $21.007 277,326 2007 $21.007 $20.384 252,656 2008 $20.384 $12.436 188,278 2009 $12.436 $16.752 149,396 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2002 $10.000 $10.553 2,732 2003 $10.553 $12.168 218,046 2004 $12.168 $12.984 182,539 2005 $12.984 $13.095 227,958 2006 $13.095 $13.820 936,505 2007 $13.820 $14.898 898,573 2008 $14.898 $12.537 714,766 2009 $12.537 $14.609 670,287 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2002 $10.000 $10.390 4 2003 $10.390 $12.464 31,401 2004 $12.464 $13.383 29,830 2005 $13.383 $14.089 40,883 2006 $14.089 $15.649 130,113 2007 $15.649 $15.851 142,847 2008 $15.851 $10.401 100,708 2009 $10.401 $13.839 89,383 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $10.800 3,560 2003 $10.800 $13.539 241,997 2004 $13.539 $14.804 172,124 2005 $14.804 $15.331 162,143 2006 $15.331 $17.489 266,435 2007 $17.489 $16.170 244,115 2008 $16.170 $9.755 223,397 2009 $9.755 $12.461 197,345 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 141 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2002 $10.000 $9.726 1,736 2003 $9.726 $11.331 43,250 2004 $11.331 $11.945 54,726 2005 $11.945 $13.308 49,402 2006 $13.308 $13.462 40,028 2007 $13.462 $13.168 38,972 2008 $13.168 $10.746 31,865 2009 $10.746 $13.325 27,216 - ------------------------------------------------------------------------------------------------------ PUTNAM VT HIGH YIELD FUND--CLASS IB 2002 $10.000 $10.743 475 2003 $10.743 $13.378 120,256 2004 $13.378 $14.554 48,270 2005 $14.554 $14.766 57,946 2006 $14.766 $16.062 300,762 2007 $16.062 $16.246 292,179 2008 $16.246 $11.820 204,275 2009 $11.820 $17.470 183,498 - ------------------------------------------------------------------------------------------------------ PUTNAM VT INCOME FUND--CLASS IB 2002 $10.000 $10.187 5,609 2003 $10.187 $10.469 263,037 2004 $10.469 $10.759 201,668 2005 $10.759 $10.838 232,164 2006 $10.838 $11.149 1,001,618 2007 $11.149 $11.544 1,052,702 2008 $11.544 $8.642 754,881 2009 $8.642 $12.472 619,477 - ------------------------------------------------------------------------------------------------------ PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2002 $10.000 $10.606 683 2003 $10.606 $13.416 57,398 2004 $13.416 $15.341 79,696 2005 $15.341 $16.939 90,776 2006 $16.939 $21.291 244,922 2007 $21.291 $22.704 205,176 2008 $22.704 $12.523 164,011 2009 $12.523 $15.359 145,629 - ------------------------------------------------------------------------------------------------------ PUTNAM VT INVESTORS FUND--CLASS IB 2002 $10.000 $10.409 302 2003 $10.409 $13.024 46,132 2004 $13.024 $14.437 19,447 2005 $14.437 $15.460 25,617 2006 $15.460 $17.334 114,672 2007 $17.334 $16.176 92,519 2008 $16.176 $9.623 61,381 2009 $9.623 $12.389 54,368 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 142 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2002 $10.000 $9.987 5,174 2003 $9.987 $9.878 199,617 2004 $9.878 $9.785 78,052 2005 $9.785 $9.873 106,156 2006 $9.873 $10.144 1,326,605 2007 $10.144 $10.459 1,230,632 2008 $10.459 $10.557 1,168,900 2009 $10.557 $10.411 1,045,501 - -------------------------------------------------------------------------------------------------------- PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2002 $10.000 $10.381 0 2003 $10.381 $13.530 57,917 2004 $13.530 $14.687 29,678 2005 $14.687 $15.900 28,046 2006 $15.900 $16.987 56,689 2007 $16.987 $17.675 53,275 2008 $17.675 $10.654 46,425 2009 $10.654 $13.855 43,295 - -------------------------------------------------------------------------------------------------------- PUTNAM VT NEW VALUE FUND--CLASS IB 2002 $10.000 $11.206 1,048 2003 $11.206 $14.610 58,917 2004 $14.610 $16.596 47,472 2005 $16.596 $17.296 78,202 2006 $17.296 $19.747 342,022 2007 $19.747 $18.481 367,814 2008 $18.481 $10.047 315,350 2009 $10.047 $9.460 0 - -------------------------------------------------------------------------------------------------------- PUTNAM VT RESEARCH FUND--CLASS IB 2002 $10.000 $10.644 66 2003 $10.644 $13.128 38,525 2004 $13.128 $13.896 25,803 2005 $13.896 $14.361 22,777 2006 $14.361 $15.733 17,578 2007 $15.733 $15.568 16,380 2008 $15.568 $9.415 16,221 2009 $9.415 $12.340 13,193 - -------------------------------------------------------------------------------------------------------- PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2002 $10.000 $10.517 4,392 2003 $10.517 $12.113 147,503 2004 $12.113 $12.899 131,257 2005 $12.899 $13.202 148,439 2006 $13.202 $14.542 234,261 2007 $14.542 $14.446 206,764 2008 $14.446 $8.427 155,173 2009 $8.427 $10.418 144,056 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 143 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $11.472 0 2003 $11.472 $14.093 14 2004 $14.093 $16.864 7,591 2005 $16.864 $18.020 6,607 2006 $18.020 $22.529 37,029 2007 $22.529 $26.590 34,126 2008 $26.590 $18.188 31,541 2009 $18.188 $19.216 25,166 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND--CLASS IB 2002 $10.000 $10.374 66 2003 $10.374 $13.596 32,814 2004 $13.596 $15.869 37,929 2005 $15.869 $17.515 34,660 2006 $17.515 $18.177 43,154 2007 $18.177 $18.568 38,321 2008 $18.568 $9.950 30,685 2009 $9.950 $13.586 27,854 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VOYAGER FUND--CLASS IB 2002 $10.000 $10.111 2,714 2003 $10.111 $12.429 204,603 2004 $12.429 $12.847 232,660 2005 $12.847 $13.363 220,448 2006 $13.363 $13.866 183,695 2007 $13.866 $14.398 171,556 2008 $14.398 $8.922 134,351 2009 $8.922 $14.390 120,884 - ------------------------------------------------------------------------------------------------------------------ VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.130 46,225 2005 $11.130 $12.171 43,238 2006 $12.171 $12.567 40,593 2007 $12.567 $14.543 31,988 2008 $14.543 $7.609 24,363 2009 $7.609 $11.709 22,391 - ------------------------------------------------------------------------------------------------------------------ VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.343 14,269 2005 $11.343 $11.622 47,730 2006 $11.622 $13.273 633,111 2007 $13.273 $12.757 537,385 2008 $12.757 $8.059 477,119 2009 $8.059 $10.184 420,385 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 144 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2002 $10.000 $9.412 226 2003 $9.412 $11.767 49,664 2004 $11.767 $12.365 54,076 2005 $12.365 $13.098 53,013 2006 $13.098 $13.229 171,720 2007 $13.229 $15.184 151,568 2008 $15.184 $7.603 112,940 2009 $7.603 $12.394 91,359 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2002 $10.000 $10.655 3,194 2003 $10.655 $13.388 152,359 2004 $13.388 $15.035 119,515 2005 $15.035 $16.235 127,047 2006 $16.235 $18.530 443,130 2007 $18.530 $18.694 418,529 2008 $18.694 $12.471 341,355 2009 $12.471 $15.231 303,451 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.895 66,137 2005 $9.895 $9.975 118,151 2006 $9.975 $10.226 302,731 2007 $10.226 $10.511 398,400 2008 $10.511 $10.529 314,797 2009 $10.529 $10.368 0 - -------------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2002 $10.000 $11.062 0 2003 $11.062 $13.908 21,280 2004 $13.908 $15.067 16,192 2005 $15.067 $16.627 18,091 2006 $16.627 $18.131 100,034 2007 $18.131 $18.983 96,018 2008 $18.983 $15.882 83,252 2009 $15.882 $20.337 65,956 - -------------------------------------------------------------------------------------------------------- UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.967 16,162 2005 $10.967 $11.589 29,002 2006 $11.589 $12.840 280,682 2007 $12.840 $13.060 347,010 2008 $13.060 $9.937 331,539 2009 $9.937 $11.978 319,241 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 145 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.763 24,252 2005 $10.763 $12.257 26,735 2006 $12.257 $12.558 173,605 2007 $12.558 $15.064 150,677 2008 $15.064 $7.532 80,186 2009 $7.532 $12.272 67,644 - ------------------------------------------------------------------------------------------------ UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.738 9,011 2005 $10.738 $12.203 10,641 2006 $12.203 $12.468 124,471 2007 $12.468 $14.926 106,403 2008 $14.926 $7.440 37,889 2009 $7.440 $12.092 26,990 - ------------------------------------------------------------------------------------------------ UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $11.098 14,221 2005 $11.098 $12.230 27,462 2006 $12.230 $14.625 272,665 2007 $14.625 $15.798 294,419 2008 $15.798 $11.048 255,720 2009 $11.048 $14.086 226,866 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.833 92,016 2007 $9.833 $11.864 215,863 2008 $11.864 $6.209 236,127 2009 $6.209 $9.616 186,191 - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.593 20,071 2004 $13.593 $15.912 19,130 2005 $15.912 $17.677 17,888 2006 $17.677 $19.456 35,605 2007 $19.456 $19.712 38,349 2008 $19.712 $11.554 27,627 2009 $11.554 $16.675 26,656 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.306 58,610 2005 $11.306 $12.497 51,537 2006 $12.497 $14.844 112,320 2007 $14.844 $15.753 100,885 2008 $15.753 $9.101 86,957 2009 $9.101 $12.468 80,040 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.40% and an administrative expense charge of 0.19%. 146 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------- UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.300 14,404 2005 $11.300 $12.472 20,338 2006 $12.472 $14.805 114,995 2007 $14.805 $15.697 163,770 2008 $15.697 $9.049 159,408 2009 $9.049 $12.392 137,628 - ---------------------------------------------------------------------------------------------- UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2002 $10.000 $10.703 1,077 2003 $10.703 $14.547 58,906 2004 $14.547 $19.479 58,603 2005 $19.479 $22.382 68,172 2006 $22.382 $30.325 181,974 2007 $30.325 $24.686 156,400 2008 $24.686 $15.048 151,102 2009 $15.048 $19.028 125,186 - ---------------------------------------------------------------------------------------------- PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $12.783 270,276 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 147 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.207 0 2007 $10.207 $11.673 0 2008 $11.673 $6.523 0 2009 $6.523 $8.616 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.397 0 2007 $10.397 $10.991 0 2008 $10.991 $8.020 0 2009 $8.020 $9.693 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.427 0 2007 $10.427 $11.179 0 2008 $11.179 $7.325 0 2009 $7.325 $9.182 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.436 0 2007 $10.436 $11.302 0 2008 $11.302 $6.813 0 2009 $6.813 $8.715 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.289 0 2007 $10.289 $10.624 0 2008 $10.624 $9.251 0 2009 $9.251 $10.341 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.686 0 2007 $9.686 $11.551 0 2008 $11.551 $6.220 0 2009 $6.220 $8.760 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.757 0 2007 $10.757 $11.031 0 2008 $11.031 $6.759 0 2009 $6.759 $8.325 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.818 0 2007 $9.818 $11.040 0 2008 $11.040 $6.501 0 2009 $6.501 $8.859 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 148 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2003 $10.680 $13.292 794 2004 $13.292 $14.336 1,584 2005 $14.336 $14.472 1,014 2006 $14.472 $16.477 963 2007 $16.477 $15.469 1,185 2008 $15.469 $9.782 1,244 2009 $9.782 $12.072 1,094 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.171 0 2005 $11.171 $11.069 0 2006 $11.069 $12.763 0 2007 $12.763 $12.911 0 2008 $12.911 $8.856 0 2009 $8.856 $11.709 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.501 0 2005 $10.501 $10.349 7,469 2006 $10.349 $11.192 6,505 2007 $11.192 $11.592 6,371 2008 $11.592 $7.400 6,487 2009 $7.400 $9.361 6,662 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2003 $11.801 $15.428 0 2004 $15.428 $16.770 0 2005 $16.770 $17.137 0 2006 $17.137 $18.164 0 2007 $18.164 $19.700 0 2008 $19.700 $11.045 0 2009 $11.045 $15.464 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2003 $11.021 $14.453 5,633 2004 $14.453 $17.440 5,461 2005 $17.440 $18.498 5,412 2006 $18.498 $21.102 4,871 2007 $21.102 $20.084 4,745 2008 $20.084 $13.117 4,658 2009 $13.117 $16.520 4,515 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.190 0 2005 $10.190 $10.176 0 2006 $10.176 $10.322 0 2007 $10.322 $10.728 0 2008 $10.728 $11.255 0 2009 $11.255 $11.315 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 149 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $10.951 0 2007 $10.951 $11.942 200 2008 $11.942 $8.331 199 2009 $8.331 $10.018 197 - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2003 $10.581 $12.591 0 2004 $12.591 $13.829 404 2005 $13.829 $14.909 0 2006 $14.909 $17.211 0 2007 $17.211 $17.364 0 2008 $17.364 $10.648 0 2009 $10.648 $13.088 0 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2003 $11.655 $16.748 0 2004 $16.748 $20.367 274 2005 $20.367 $25.309 241 2006 $25.309 $31.613 34 2007 $31.613 $39.694 98 2008 $39.694 $18.304 169 2009 $18.304 $30.806 157 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2003 $10.359 $13.497 785 2004 $13.497 $15.599 785 2005 $15.599 $16.759 3,619 2006 $16.759 $19.847 3,197 2007 $19.847 $22.342 3,034 2008 $22.342 $12.988 3,180 2009 $12.988 $17.356 3,016 - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2003 $11.563 $12.792 0 2004 $12.792 $14.312 0 2005 $14.312 $13.526 0 2006 $13.526 $14.875 0 2007 $14.875 $16.099 0 2008 $16.099 $16.672 0 2009 $16.672 $19.294 0 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.887 0 2005 $10.887 $11.355 0 2006 $11.355 $12.694 0 2007 $12.694 $13.208 0 2008 $13.208 $9.186 0 2009 $9.186 $11.284 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 150 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.339 0 2005 $10.339 $10.214 3,358 2006 $10.214 $10.890 3,659 2007 $10.890 $11.274 3,579 2008 $11.274 $9.065 2,148 2009 $9.065 $11.873 2,116 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.871 0 2005 $10.871 $10.946 0 2006 $10.946 $12.518 0 2007 $12.518 $12.624 0 2008 $12.624 $7.826 1,062 2009 $7.826 $9.073 1,183 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.119 0 2005 $11.119 $11.344 0 2006 $11.344 $11.936 0 2007 $11.936 $14.114 0 2008 $14.114 $8.499 0 2009 $8.499 $12.062 0 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.102 0 2005 $11.102 $11.716 4,347 2006 $11.716 $12.823 3,504 2007 $12.823 $12.574 3,802 2008 $12.574 $7.435 4,518 2009 $7.435 $9.180 4,598 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2003 $10.319 $12.298 4,939 2004 $12.298 $14.322 4,736 2005 $14.322 $15.640 4,663 2006 $15.640 $15.664 4,465 2007 $15.664 $16.193 4,277 2008 $16.193 $8.019 3,927 2009 $8.019 $10.342 3,895 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2003 $11.085 $12.997 0 2004 $12.997 $13.914 468 2005 $13.914 $14.067 468 2006 $14.067 $15.207 469 2007 $15.207 $15.343 460 2008 $15.343 $8.435 0 2009 $8.435 $10.002 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 151 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.087 0 2005 $10.087 $10.066 0 2006 $10.066 $10.300 0 2007 $10.300 $10.453 0 2008 $10.453 $6.210 0 2009 $6.210 $6.603 0 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.222 0 2004 $12.222 $12.707 1,319 2005 $12.707 $12.994 3,573 2006 $12.994 $13.644 3,427 2007 $13.644 $15.146 3,202 2008 $15.146 $8.025 4,955 2009 $8.025 $11.280 4,347 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2003 $10.062 $14.128 0 2004 $14.128 $16.377 0 2005 $16.377 $18.216 152 2006 $18.216 $20.848 140 2007 $20.848 $21.563 138 2008 $21.563 $12.545 135 2009 $12.545 $17.047 144 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2003 $11.708 $12.861 3,096 2004 $12.861 $13.636 3,274 2005 $13.636 $13.564 3,612 2006 $13.564 $14.448 3,461 2007 $14.448 $14.020 3,340 2008 $14.020 $2.929 3,933 2009 $2.929 $3.597 3,566 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2003 $10.442 $12.540 2,031 2004 $12.540 $13.346 1,958 2005 $13.346 $13.761 8,119 2006 $13.761 $15.400 6,907 2007 $15.400 $15.638 6,790 2008 $15.638 $9.358 7,509 2009 $9.358 $11.680 7,613 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2003 $10.692 $14.554 715 2004 $14.554 $16.914 1,046 2005 $16.914 $18.096 2,028 2006 $18.096 $20.234 1,714 2007 $20.234 $19.452 1,740 2008 $19.452 $11.759 2,077 2009 $11.759 $15.695 1,980 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 152 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------ OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2003 $11.224 $12.046 4,565 2004 $12.046 $12.737 6,173 2005 $12.737 $12.729 7,837 2006 $12.729 $13.310 8,414 2007 $13.310 $14.217 7,968 2008 $14.217 $11.855 5,798 2009 $11.855 $13.688 5,757 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2003 $10.730 $12.339 0 2004 $12.339 $13.128 0 2005 $13.128 $13.695 750 2006 $13.695 $15.072 736 2007 $15.072 $15.127 726 2008 $15.127 $9.835 0 2009 $9.835 $12.966 0 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2003 $10.971 $13.404 263 2004 $13.404 $14.522 212 2005 $14.522 $14.902 179 2006 $14.902 $16.845 148 2007 $16.845 $15.431 132 2008 $15.431 $9.224 122 2009 $9.224 $11.675 81 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2003 $10.213 $11.218 116 2004 $11.218 $11.718 96 2005 $11.718 $12.935 80 2006 $12.935 $12.966 65 2007 $12.966 $12.566 53 2008 $12.566 $10.161 41 2009 $10.161 $12.484 22 - ------------------------------------------------------------------------------------------------------ PUTNAM VT HIGH YIELD FUND--CLASS IB 2003 $11.841 $13.245 0 2004 $13.245 $14.277 391 2005 $14.277 $14.353 397 2006 $14.353 $15.470 387 2007 $15.470 $15.504 405 2008 $15.504 $11.177 3,131 2009 $11.177 $16.368 2,981 - ------------------------------------------------------------------------------------------------------ PUTNAM VT INCOME FUND--CLASS IB 2003 $10.335 $10.364 1,290 2004 $10.364 $10.554 2,104 2005 $10.554 $10.535 7,068 2006 $10.535 $10.738 7,270 2007 $10.738 $11.016 7,160 2008 $11.016 $8.171 4,637 2009 $8.171 $11.686 4,048 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 153 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2003 $10.554 $13.282 15,292 2004 $13.282 $15.049 8,870 2005 $15.049 $16.465 8,551 2006 $16.465 $20.507 8,194 2007 $20.507 $21.667 7,989 2008 $21.667 $11.841 7,104 2009 $11.841 $14.390 7,057 - ------------------------------------------------------------------------------------------------- PUTNAM VT INVESTORS FUND--CLASS IB 2003 $10.670 $12.894 0 2004 $12.894 $14.163 0 2005 $14.163 $15.027 0 2006 $15.027 $16.696 0 2007 $16.696 $15.437 0 2008 $15.437 $9.099 0 2009 $9.099 $11.607 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2003 $9.917 $9.779 1,411 2004 $9.779 $9.598 3,015 2005 $9.598 $9.597 8,670 2006 $9.597 $9.770 9,762 2007 $9.770 $9.981 9,632 2008 $9.981 $9.982 4,607 2009 $9.982 $9.754 7,609 - ------------------------------------------------------------------------------------------------- PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2003 $10.957 $13.395 0 2004 $13.395 $14.408 0 2005 $14.408 $15.456 0 2006 $15.456 $16.362 0 2007 $16.362 $16.868 0 2008 $16.868 $10.074 0 2009 $10.074 $12.980 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT NEW VALUE FUND--CLASS IB 2003 $11.298 $14.464 12,046 2004 $14.464 $16.280 13,910 2005 $16.280 $16.812 15,326 2006 $16.812 $19.020 14,500 2007 $19.020 $17.637 14,265 2008 $17.637 $9.500 13,254 2009 $9.500 $8.935 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT RESEARCH FUND--CLASS IB 2003 $10.819 $12.997 0 2004 $12.997 $13.632 0 2005 $13.632 $13.960 0 2006 $13.960 $15.153 0 2007 $15.153 $14.856 0 2008 $14.856 $8.902 0 2009 $8.902 $11.561 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 154 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2003 $10.660 $11.992 1,563 2004 $11.992 $12.654 1,561 2005 $12.654 $12.833 2,112 2006 $12.833 $14.006 1,869 2007 $14.006 $13.786 1,731 2008 $13.786 $7.968 833 2009 $7.968 $9.761 530 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2003 $11.455 $13.971 0 2004 $13.971 $16.543 0 2005 $16.543 $17.516 0 2006 $17.516 $21.699 0 2007 $21.699 $25.376 0 2008 $25.376 $17.199 0 2009 $17.199 $18.004 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND--CLASS IB 2003 $10.776 $13.460 0 2004 $13.460 $15.567 0 2005 $15.567 $17.025 0 2006 $17.025 $17.507 0 2007 $17.507 $17.719 0 2008 $17.719 $9.408 0 2009 $9.408 $12.729 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VOYAGER FUND--CLASS IB 2003 $10.557 $12.305 813 2004 $12.305 $12.603 915 2005 $12.603 $12.989 0 2006 $12.989 $13.355 0 2007 $13.355 $13.740 0 2008 $13.740 $8.436 0 2009 $8.436 $13.482 0 - ------------------------------------------------------------------------------------------------------------------ VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.062 1,030 2005 $11.062 $11.986 1,030 2006 $11.986 $12.263 1,003 2007 $12.263 $14.061 955 2008 $14.061 $7.289 956 2009 $7.289 $11.114 956 - ------------------------------------------------------------------------------------------------------------------ VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.274 0 2005 $11.274 $11.446 2,787 2006 $11.446 $12.952 2,016 2007 $12.952 $12.334 2,145 2008 $12.334 $7.721 2,244 2009 $7.721 $9.667 2,369 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 155 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2003 $9.909 $11.650 14,005 2004 $11.650 $12.129 16,837 2005 $12.129 $12.732 15,428 2006 $12.732 $12.742 14,773 2007 $12.742 $14.490 14,117 2008 $14.490 $7.189 12,744 2009 $7.189 $11.612 12,635 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2003 $10.757 $13.254 2,676 2004 $13.254 $14.749 2,467 2005 $14.749 $15.781 5,528 2006 $15.781 $17.848 4,770 2007 $17.848 $17.840 4,656 2008 $17.840 $11.792 4,541 2009 $11.792 $14.270 4,564 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.805 0 2005 $9.805 $9.793 0 2006 $9.793 $9.948 0 2007 $9.948 $10.132 0 2008 $10.132 $10.056 4,793 2009 $10.056 $9.815 0 - -------------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2003 $12.265 $13.770 0 2004 $13.770 $14.780 0 2005 $14.780 $16.162 0 2006 $16.162 $17.464 0 2007 $17.464 $18.115 0 2008 $18.115 $15.018 0 2009 $15.018 $19.054 0 - -------------------------------------------------------------------------------------------------------- UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.900 0 2005 $10.900 $11.413 0 2006 $11.413 $12.530 0 2007 $12.530 $12.627 0 2008 $12.627 $9.520 0 2009 $9.520 $11.370 2,501 - -------------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.697 3,557 2005 $10.697 $12.071 3,407 2006 $12.071 $12.254 3,405 2007 $12.254 $14.565 3,141 2008 $14.565 $7.216 3,594 2009 $7.216 $11.649 2,973 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 156 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.672 0 2005 $10.672 $12.018 0 2006 $12.018 $12.166 0 2007 $12.166 $14.432 0 2008 $14.432 $7.127 0 2009 $7.127 $11.478 0 - ------------------------------------------------------------------------------------------------ UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $10.996 0 2005 $10.996 $12.007 0 2006 $12.007 $14.228 0 2007 $14.228 $15.228 159 2008 $15.228 $10.551 157 2009 $10.551 $13.331 156 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.772 0 2007 $9.772 $11.682 0 2008 $11.682 $6.058 0 2009 $6.058 $9.296 0 - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.510 0 2004 $13.510 $15.670 0 2005 $15.670 $17.250 0 2006 $17.250 $18.813 0 2007 $18.813 $18.885 0 2008 $18.885 $10.968 0 2009 $10.968 $15.684 0 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.237 1,038 2005 $11.237 $12.307 1,038 2006 $12.307 $14.486 1,011 2007 $14.486 $15.231 963 2008 $15.231 $8.719 963 2009 $8.719 $11.835 963 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.231 0 2005 $11.231 $12.282 0 2006 $12.282 $14.447 0 2007 $14.447 $15.176 153 2008 $15.176 $8.668 152 2009 $8.668 $11.763 150 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PLUS CONTRACTS--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 2.30% and an administrative expense charge of 0.19%. 157 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------- UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2003 $11.357 $14.402 2,467 2004 $14.402 $19.109 2,258 2005 $19.109 $21.756 2,395 2006 $21.756 $29.208 2,198 2007 $29.208 $23.558 2,284 2008 $23.558 $14.228 1,464 2009 $14.228 $17.827 1,466 - -------------------------------------------------------------------------------------------- PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $11.976 13,127 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 158 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.270 58,931 2007 $10.270 $11.854 205,386 2008 $11.854 $6.685 199,825 2009 $6.685 $8.913 180,795 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.462 22,865 2007 $10.462 $11.161 49,421 2008 $11.161 $8.219 88,629 2009 $8.219 $10.026 71,540 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.491 0 2007 $10.491 $11.353 0 2008 $11.353 $7.507 8,967 2009 $7.507 $9.497 8,524 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.500 4,936 2007 $10.500 $11.477 3,177 2008 $11.477 $6.983 1,002 2009 $6.983 $9.015 607 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.352 2,423 2007 $10.352 $10.789 4,787 2008 $10.789 $9.481 6,169 2009 $9.481 $10.696 10,903 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.746 0 2007 $9.746 $11.730 1,813 2008 $11.730 $6.375 1,340 2009 $6.375 $9.061 1,008 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.824 22,952 2007 $10.824 $11.203 55,881 2008 $11.203 $6.928 58,510 2009 $6.928 $8.611 60,521 - ------------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.879 9,989 2007 $9.879 $11.212 38,987 2008 $11.212 $6.663 39,134 2009 $6.663 $9.164 36,579 - ------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.853 1,895 2003 $10.853 $13.425 31,028 2004 $13.425 $14.614 68,823 2005 $14.614 $14.888 79,315 2006 $14.888 $17.107 84,562 2007 $17.107 $16.210 90,229 2008 $16.210 $10.345 80,421 2009 $10.345 $12.884 72,551 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 159 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.240 22,636 2005 $11.240 $11.240 258,448 2006 $11.240 $13.079 488,323 2007 $13.079 $13.354 651,119 2008 $13.354 $9.244 569,671 2009 $9.244 $12.335 496,401 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.525 1,153 2005 $10.525 $10.468 106,672 2006 $10.468 $11.425 209,179 2007 $11.425 $11.943 242,913 2008 $11.943 $7.695 220,904 2009 $7.695 $9.824 190,232 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2002 $10.000 $11.538 0 2003 $11.538 $15.583 2,120 2004 $15.583 $17.095 1,457 2005 $17.095 $17.630 1,685 2006 $17.630 $18.858 1,833 2007 $18.858 $20.643 1,745 2008 $20.643 $11.681 1,870 2009 $11.681 $16.505 1,956 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2002 $10.000 $11.228 0 2003 $11.228 $14.599 17,710 2004 $14.599 $17.778 32,091 2005 $17.778 $19.031 56,409 2006 $19.031 $21.909 67,453 2007 $21.909 $21.046 74,742 2008 $21.046 $13.873 68,129 2009 $13.873 $17.632 59,102 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.253 4,788 2005 $10.253 $10.333 36,809 2006 $10.333 $10.577 69,659 2007 $10.577 $11.096 71,356 2008 $11.096 $11.748 84,106 2009 $11.748 $11.919 121,665 - ---------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $11.019 28,256 2007 $11.019 $12.127 139,069 2008 $12.127 $8.538 142,841 2009 $8.538 $10.362 133,223 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 160 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2002 $10.000 $10.327 0 2003 $10.327 $12.718 51,247 2004 $12.718 $14.097 89,468 2005 $14.097 $15.338 195,874 2006 $15.338 $17.869 248,012 2007 $17.869 $18.195 286,267 2008 $18.195 $11.261 235,403 2009 $11.261 $13.969 193,701 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2002 $10.000 $11.236 0 2003 $11.236 $16.917 4,338 2004 $16.917 $20.762 10,936 2005 $20.762 $26.037 24,121 2006 $26.037 $32.822 33,128 2007 $32.822 $41.594 21,398 2008 $41.594 $19.358 21,909 2009 $19.358 $32.879 20,227 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2002 $10.000 $10.477 0 2003 $10.477 $13.633 10,738 2004 $13.633 $15.902 24,545 2005 $15.902 $17.241 131,380 2006 $17.241 $20.606 214,900 2007 $20.606 $23.411 229,814 2008 $23.411 $13.736 198,347 2009 $13.736 $18.525 163,288 - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.723 1,921 2003 $10.723 $12.920 1,995 2004 $12.920 $14.589 2,561 2005 $14.589 $13.916 2,729 2006 $13.916 $15.444 2,751 2007 $15.444 $16.870 2,584 2008 $16.870 $17.632 1,829 2009 $17.632 $20.593 2,009 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.912 2,680 2005 $10.912 $11.485 19,434 2006 $11.485 $12.958 33,197 2007 $12.958 $13.608 39,496 2008 $13.608 $9.552 35,683 2009 $9.552 $11.842 30,990 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 161 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.363 1,954 2005 $10.363 $10.332 64,927 2006 $10.332 $11.116 124,486 2007 $11.116 $11.615 173,757 2008 $11.615 $9.426 146,403 2009 $9.426 $12.459 128,757 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.896 7,786 2005 $10.896 $11.072 66,461 2006 $11.072 $12.778 96,277 2007 $12.778 $13.006 122,166 2008 $13.006 $8.137 105,589 2009 $8.137 $9.521 96,028 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.144 86 2005 $11.144 $11.475 6,838 2006 $11.475 $12.184 31,720 2007 $12.184 $14.541 42,332 2008 $14.541 $8.837 39,901 2009 $8.837 $12.658 28,179 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.127 2,907 2005 $11.127 $11.851 88,785 2006 $11.851 $13.090 113,220 2007 $13.090 $12.955 133,809 2008 $12.955 $7.732 127,162 2009 $7.732 $9.634 110,093 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.063 0 2003 $10.063 $12.422 8,483 2004 $12.422 $14.600 22,403 2005 $14.600 $16.090 30,987 2006 $16.090 $16.263 40,565 2007 $16.263 $16.969 36,754 2008 $16.969 $8.481 36,514 2009 $8.481 $11.038 33,983 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2002 $10.000 $10.699 0 2003 $10.699 $13.128 14,806 2004 $13.128 $14.184 25,039 2005 $14.184 $14.472 40,359 2006 $14.472 $15.789 46,580 2007 $15.789 $16.078 45,964 2008 $16.078 $8.921 44,678 2009 $8.921 $10.676 41,279 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 162 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.110 1,900 2005 $10.110 $10.182 19,950 2006 $10.182 $10.515 131,838 2007 $10.515 $10.770 250,642 2008 $10.770 $6.457 255,607 2009 $6.457 $6.929 257,461 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.298 16,293 2004 $12.298 $12.903 62,821 2005 $12.903 $13.316 119,313 2006 $13.316 $14.111 148,739 2007 $14.111 $15.810 121,790 2008 $15.810 $8.454 106,556 2009 $8.454 $11.993 82,580 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2002 $10.000 $10.150 0 2003 $10.150 $14.270 4,146 2004 $14.270 $16.695 18,071 2005 $16.695 $18.740 21,315 2006 $18.740 $21.645 21,514 2007 $21.645 $22.595 24,156 2008 $22.595 $13.267 18,696 2009 $13.267 $18.195 15,856 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2002 $10.000 $10.663 0 2003 $10.663 $12.991 12 2004 $12.991 $13.901 41,186 2005 $13.901 $13.955 48,901 2006 $13.955 $15.000 61,033 2007 $15.000 $14.691 66,322 2008 $14.691 $3.098 87,042 2009 $3.098 $3.840 70,920 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2002 $10.000 $10.179 1,945 2003 $10.179 $12.666 26,782 2004 $12.666 $13.604 59,125 2005 $13.604 $14.157 140,753 2006 $14.157 $15.989 202,184 2007 $15.989 $16.387 197,820 2008 $16.387 $9.897 190,381 2009 $9.897 $12.466 166,920 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 163 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.356 0 2003 $10.356 $14.701 14,941 2004 $14.701 $17.242 25,485 2005 $17.242 $18.617 41,748 2006 $18.617 $21.007 54,905 2007 $21.007 $20.384 54,188 2008 $20.384 $12.436 48,848 2009 $12.436 $16.752 41,773 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2002 $10.000 $10.553 1,928 2003 $10.553 $12.168 41,097 2004 $12.168 $12.984 77,772 2005 $12.984 $13.095 191,974 2006 $13.095 $13.820 247,776 2007 $13.820 $14.898 297,150 2008 $14.898 $12.537 258,453 2009 $12.537 $14.609 243,833 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2002 $10.000 $10.390 0 2003 $10.390 $12.464 8,988 2004 $12.464 $13.383 14,779 2005 $13.383 $14.089 22,697 2006 $14.089 $15.649 33,202 2007 $15.649 $15.851 29,202 2008 $15.851 $10.401 22,083 2009 $10.401 $13.839 20,871 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $10.800 0 2003 $10.800 $14.093 2,112 2004 $14.093 $14.804 49,986 2005 $14.804 $15.331 53,041 2006 $15.331 $17.489 51,557 2007 $17.489 $16.170 56,846 2008 $16.170 $9.755 35,860 2009 $9.755 $12.461 31,367 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2002 $10.000 $9.726 0 2003 $9.726 $11.331 978 2004 $11.331 $11.945 1,958 2005 $11.945 $13.308 2,147 2006 $13.308 $13.462 2,250 2007 $13.462 $13.168 2,107 2008 $13.168 $10.746 1,552 2009 $10.746 $13.325 398 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 164 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- PUTNAM VT HIGH YIELD FUND--CLASS IB 2002 $10.000 $10.743 0 2003 $10.743 $13.378 20,709 2004 $13.378 $14.554 39,241 2005 $14.554 $14.766 58,158 2006 $14.766 $16.062 84,296 2007 $16.062 $16.246 90,170 2008 $16.246 $11.820 71,506 2009 $11.820 $17.470 63,317 - ------------------------------------------------------------------------------------------------- PUTNAM VT INCOME FUND--CLASS IB 2002 $10.000 $10.187 0 2003 $10.187 $10.469 33,742 2004 $10.469 $10.759 65,425 2005 $10.759 $10.838 153,673 2006 $10.838 $11.149 278,298 2007 $11.149 $11.544 316,107 2008 $11.544 $8.642 257,346 2009 $8.642 $12.472 195,766 - ------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2002 $10.000 $10.606 0 2003 $10.606 $13.416 16,560 2004 $13.416 $15.341 23,536 2005 $15.341 $16.939 34,205 2006 $16.939 $21.291 56,149 2007 $21.291 $22.704 67,587 2008 $22.704 $12.523 61,723 2009 $12.523 $15.359 57,600 - ------------------------------------------------------------------------------------------------- PUTNAM VT INVESTORS FUND--CLASS IB 2002 $10.000 $10.409 0 2003 $10.409 $13.024 4,222 2004 $13.024 $14.437 5,134 2005 $14.437 $15.460 14,206 2006 $15.460 $17.334 28,439 2007 $17.334 $16.176 33,309 2008 $16.176 $9.623 21,458 2009 $9.623 $12.389 19,349 - ------------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2002 $10.000 $9.987 0 2003 $9.987 $9.878 3,503 2004 $9.878 $9.785 25,745 2005 $9.785 $9.873 132,095 2006 $9.873 $10.144 212,468 2007 $10.144 $10.459 333,114 2008 $10.459 $10.557 236,819 2009 $10.557 $10.411 245,324 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 165 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2002 $10.000 $10.381 0 2003 $10.381 $13.530 4,646 2004 $13.530 $14.687 4,607 2005 $14.687 $15.900 4,534 2006 $15.900 $16.987 4,578 2007 $16.987 $17.675 3,706 2008 $17.675 $10.654 1,418 2009 $10.654 $13.855 482 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT NEW VALUE FUND--CLASS IB 2002 $10.000 $11.206 0 2003 $11.206 $14.610 3,413 2004 $14.610 $16.596 9,332 2005 $16.596 $17.296 52,908 2006 $17.296 $19.747 83,473 2007 $19.747 $18.481 99,643 2008 $18.481 $10.047 92,634 2009 $10.047 $9.460 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT RESEARCH FUND--CLASS IB 2002 $10.000 $10.644 0 2003 $10.644 $13.128 2,239 2004 $13.128 $13.896 4,387 2005 $13.896 $14.361 4,597 2006 $14.361 $15.733 4,443 2007 $15.733 $15.568 3,226 2008 $15.568 $9.415 2,745 2009 $9.415 $12.340 1,662 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2002 $10.000 $10.517 0 2003 $10.517 $12.113 24,540 2004 $12.113 $12.899 64,309 2005 $12.899 $13.202 58,344 2006 $13.202 $14.542 72,048 2007 $14.542 $14.446 67,765 2008 $14.446 $8.427 38,767 2009 $8.427 $10.418 33,425 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $11.472 0 2003 $11.472 $14.093 2,112 2004 $14.093 $16.864 5,170 2005 $16.864 $18.020 5,057 2006 $18.020 $22.529 4,787 2007 $22.529 $26.590 2,885 2008 $26.590 $18.188 2,084 2009 $18.188 $19.216 2,203 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 166 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ----------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND--CLASS IB 2002 $10.000 $10.374 0 2003 $10.374 $13.596 9,417 2004 $13.596 $15.869 15,619 2005 $15.869 $17.515 12,925 2006 $17.515 $18.177 9,150 2007 $18.177 $18.568 7,663 2008 $18.568 $9.950 6,265 2009 $9.950 $13.586 5,142 - ----------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND--CLASS IB 2002 $10.000 $10.111 0 2003 $10.111 $12.429 44,440 2004 $12.429 $12.847 54,946 2005 $12.847 $13.363 71,627 2006 $13.363 $13.866 70,383 2007 $13.866 $14.398 64,271 2008 $14.398 $8.922 51,527 2009 $8.922 $14.390 44,697 - ----------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.130 5,000 2005 $11.130 $12.171 9,550 2006 $12.171 $12.567 7,898 2007 $12.567 $14.543 7,549 2008 $14.543 $7.609 6,352 2009 $7.609 $11.709 5,887 - ----------------------------------------------------------------------------------------------------- VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.343 29,089 2005 $11.343 $11.622 104,771 2006 $11.622 $13.273 162,673 2007 $13.273 $12.757 166,026 2008 $12.757 $8.059 133,110 2009 $8.059 $10.184 123,616 - ----------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2002 $10.000 $9.412 0 2003 $9.412 $11.767 4,800 2004 $11.767 $12.365 16,427 2005 $12.365 $13.098 35,171 2006 $13.098 $13.229 43,766 2007 $13.229 $15.184 46,533 2008 $15.184 $7.603 41,011 2009 $7.603 $12.394 33,167 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 167 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2002 $10.000 $10.655 0 2003 $10.655 $13.388 16,041 2004 $13.388 $15.035 55,062 2005 $15.035 $16.235 97,713 2006 $16.235 $18.530 121,276 2007 $18.530 $18.694 125,665 2008 $18.694 $12.471 111,525 2009 $12.471 $15.231 92,694 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.895 23,867 2005 $9.895 $9.975 76,491 2006 $9.975 $10.226 55,566 2007 $10.226 $10.511 52,997 2008 $10.511 $10.529 45,546 2009 $10.529 $10.368 0 - -------------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2002 $10.000 $11.062 0 2003 $11.062 $13.908 2,511 2004 $13.908 $15.067 7,583 2005 $15.067 $16.627 20,297 2006 $16.627 $18.131 24,735 2007 $18.131 $18.983 25,013 2008 $18.983 $15.882 22,345 2009 $15.882 $20.337 22,960 - -------------------------------------------------------------------------------------------------------- UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.967 40,892 2005 $10.967 $11.589 82,180 2006 $11.589 $12.840 139,142 2007 $12.840 $13.060 160,968 2008 $13.060 $9.937 149,835 2009 $9.937 $11.978 125,212 - -------------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.763 7,291 2005 $10.763 $12.257 6,860 2006 $12.257 $12.558 5,209 2007 $12.558 $15.064 4,795 2008 $15.064 $7.532 3,861 2009 $7.532 $12.272 3,428 - -------------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.738 4,141 2005 $10.738 $12.203 5,702 2006 $12.203 $12.468 8,295 2007 $12.468 $14.926 8,181 2008 $14.926 $7.440 8,649 2009 $7.440 $12.092 5,348 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.4 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.40% and an administrative expense charge of 0.19%. 168 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $11.098 20,294 2005 $11.098 $12.230 67,795 2006 $12.230 $14.625 126,365 2007 $14.625 $15.798 126,897 2008 $15.798 $11.048 108,420 2009 $11.048 $14.086 97,432 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.833 33,087 2007 $9.833 $11.864 55,991 2008 $11.864 $6.209 61,786 2009 $6.209 $9.616 51,479 - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.593 1,742 2004 $13.593 $15.912 8,905 2005 $15.912 $17.677 12,996 2006 $17.677 $19.456 11,922 2007 $19.456 $19.712 9,527 2008 $19.712 $11.554 7,698 2009 $11.554 $16.675 7,106 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.306 17,454 2005 $11.306 $12.497 18,097 2006 $12.497 $14.844 17,725 2007 $14.844 $15.753 14,683 2008 $15.753 $9.101 13,906 2009 $9.101 $12.468 12,012 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.300 18,683 2005 $11.300 $12.472 23,225 2006 $12.472 $14.805 40,335 2007 $14.805 $15.697 53,940 2008 $15.697 $9.049 55,316 2009 $9.049 $12.392 47,020 - ------------------------------------------------------------------------------------------------ UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2002 $10.000 $10.703 0 2003 $10.703 $14.547 10,341 2004 $14.547 $19.479 25,715 2005 $19.479 $22.382 34,738 2006 $22.382 $30.325 37,755 2007 $30.325 $24.686 45,700 2008 $24.686 $15.048 41,215 2009 $15.048 $19.028 37,874 - ------------------------------------------------------------------------------------------------ PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $12.783 79,948 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 169 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.207 0 2007 $10.207 $11.673 0 2008 $11.673 $6.523 0 2009 $6.523 $8.616 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.397 0 2007 $10.397 $10.991 0 2008 $10.991 $8.020 0 2009 $8.020 $9.693 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.427 0 2007 $10.427 $11.179 0 2008 $11.179 $7.325 0 2009 $7.325 $9.182 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.436 0 2007 $10.436 $11.302 0 2008 $11.302 $6.813 0 2009 $6.813 $8.715 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.289 0 2007 $10.289 $10.624 0 2008 $10.624 $9.251 0 2009 $9.251 $10.341 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.686 0 2007 $9.686 $11.551 0 2008 $11.551 $6.220 0 2009 $6.220 $8.760 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.757 0 2007 $10.757 $11.031 0 2008 $11.031 $6.759 0 2009 $6.759 $8.325 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.818 0 2007 $9.818 $11.040 0 2008 $11.040 $6.501 0 2009 $6.501 $8.859 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 170 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2003 $10.680 $13.292 0 2004 $13.292 $14.336 0 2005 $14.336 $14.472 0 2006 $14.472 $16.477 0 2007 $16.477 $15.469 0 2008 $15.469 $9.782 0 2009 $9.782 $12.072 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.171 0 2005 $11.171 $11.069 0 2006 $11.069 $12.763 0 2007 $12.763 $12.911 0 2008 $12.911 $8.856 0 2009 $8.856 $11.709 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.501 0 2005 $10.501 $10.349 40 2006 $10.349 $11.192 40 2007 $11.192 $11.592 40 2008 $11.592 $7.400 40 2009 $7.400 $9.361 39 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2003 $11.801 $15.428 0 2004 $15.428 $16.770 0 2005 $16.770 $17.137 0 2006 $17.137 $18.164 0 2007 $18.164 $19.700 0 2008 $19.700 $11.045 0 2009 $11.045 $15.464 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2003 $11.021 $14.453 0 2004 $14.453 $17.440 0 2005 $17.440 $18.498 0 2006 $18.498 $21.102 0 2007 $21.102 $20.084 0 2008 $20.084 $13.117 0 2009 $13.117 $16.520 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.190 0 2005 $10.190 $10.176 0 2006 $10.176 $10.322 0 2007 $10.322 $10.728 0 2008 $10.728 $11.255 0 2009 $11.255 $11.315 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 171 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $10.951 0 2007 $10.951 $11.942 0 2008 $11.942 $8.331 0 2009 $8.331 $10.018 0 - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2003 $10.581 $12.591 0 2004 $12.591 $13.829 0 2005 $13.829 $14.909 0 2006 $14.909 $17.211 552 2007 $17.211 $17.364 548 2008 $17.364 $10.648 545 2009 $10.648 $13.088 540 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2003 $11.655 $16.748 0 2004 $16.748 $20.367 0 2005 $20.367 $25.309 0 2006 $25.309 $31.613 0 2007 $31.613 $39.694 0 2008 $39.694 $18.304 0 2009 $18.304 $30.806 0 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2003 $10.359 $13.497 0 2004 $13.497 $15.599 0 2005 $15.599 $16.759 0 2006 $16.759 $19.847 281 2007 $19.847 $22.342 279 2008 $22.342 $12.988 277 2009 $12.988 $17.356 275 - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2003 $11.563 $12.792 0 2004 $12.792 $14.312 0 2005 $14.312 $13.526 0 2006 $13.526 $14.875 0 2007 $14.875 $16.099 0 2008 $16.099 $16.672 0 2009 $16.672 $19.294 0 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.887 0 2005 $10.887 $11.355 0 2006 $11.355 $12.694 0 2007 $12.694 $13.208 0 2008 $13.208 $9.186 0 2009 $9.186 $11.284 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 172 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.339 0 2005 $10.339 $10.214 0 2006 $10.214 $10.890 0 2007 $10.890 $11.274 0 2008 $11.274 $9.065 0 2009 $9.065 $11.873 0 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.871 0 2005 $10.871 $10.946 0 2006 $10.946 $12.518 0 2007 $12.518 $12.624 0 2008 $12.624 $7.826 0 2009 $7.826 $9.073 0 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.119 0 2005 $11.119 $11.344 0 2006 $11.344 $11.936 0 2007 $11.936 $14.114 0 2008 $14.114 $8.499 0 2009 $8.499 $12.062 0 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.102 0 2005 $11.102 $11.716 0 2006 $11.716 $12.823 0 2007 $12.823 $12.574 0 2008 $12.574 $7.435 0 2009 $7.435 $9.180 0 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2003 $10.319 $12.298 0 2004 $12.298 $14.322 0 2005 $14.322 $15.640 0 2006 $15.640 $15.664 0 2007 $15.664 $16.193 0 2008 $16.193 $8.019 0 2009 $8.019 $10.342 0 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2003 $11.085 $12.997 0 2004 $12.997 $13.914 0 2005 $13.914 $14.067 0 2006 $14.067 $15.207 0 2007 $15.207 $15.343 0 2008 $15.343 $8.435 0 2009 $8.435 $10.002 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 173 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.087 0 2005 $10.087 $10.066 0 2006 $10.066 $10.300 0 2007 $10.300 $10.453 0 2008 $10.453 $6.210 0 2009 $6.210 $6.603 0 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.222 0 2004 $12.222 $12.707 0 2005 $12.707 $12.994 0 2006 $12.994 $13.644 0 2007 $13.644 $15.146 0 2008 $15.146 $8.025 0 2009 $8.025 $11.280 0 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2003 $10.062 $14.128 0 2004 $14.128 $16.377 0 2005 $16.377 $18.216 0 2006 $18.216 $20.848 0 2007 $20.848 $21.563 0 2008 $21.563 $12.545 0 2009 $12.545 $17.047 0 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2003 $11.708 $12.861 0 2004 $12.861 $13.636 0 2005 $13.636 $13.564 0 2006 $13.564 $14.448 0 2007 $14.448 $14.020 0 2008 $14.020 $2.929 0 2009 $2.929 $3.597 0 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2003 $10.442 $12.540 370 2004 $12.540 $13.346 498 2005 $13.346 $13.761 525 2006 $13.761 $15.400 29 2007 $15.400 $15.638 29 2008 $15.638 $9.358 29 2009 $9.358 $11.680 29 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 174 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2003 $10.692 $14.554 321 2004 $14.554 $16.914 428 2005 $16.914 $18.096 213 2006 $18.096 $20.234 211 2007 $20.234 $19.452 210 2008 $19.452 $11.759 209 2009 $11.759 $15.695 207 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2003 $11.224 $12.046 0 2004 $12.046 $12.737 0 2005 $12.737 $12.729 0 2006 $12.729 $13.310 0 2007 $13.310 $14.217 0 2008 $14.217 $11.855 0 2009 $11.855 $13.688 0 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2003 $10.730 $12.339 0 2004 $12.339 $13.128 0 2005 $13.128 $13.695 0 2006 $13.695 $15.072 0 2007 $15.072 $15.127 0 2008 $15.127 $9.835 0 2009 $9.835 $12.966 0 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2003 $10.971 $13.404 0 2004 $13.404 $14.522 0 2005 $14.522 $14.902 0 2006 $14.902 $16.845 0 2007 $16.845 $15.431 0 2008 $15.431 $9.224 0 2009 $9.224 $11.675 0 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2003 $10.213 $11.218 0 2004 $11.218 $11.718 0 2005 $11.718 $12.935 0 2006 $12.935 $12.966 0 2007 $12.966 $12.566 0 2008 $12.566 $10.161 0 2009 $10.161 $12.484 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 175 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- PUTNAM VT HIGH YIELD FUND--CLASS IB 2003 $11.841 $13.245 0 2004 $13.245 $14.277 0 2005 $14.277 $14.353 0 2006 $14.353 $15.470 0 2007 $15.470 $15.504 0 2008 $15.504 $11.177 0 2009 $11.177 $16.368 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT INCOME FUND--CLASS IB 2003 $10.335 $10.364 0 2004 $10.364 $10.554 0 2005 $10.554 $10.535 0 2006 $10.535 $10.738 0 2007 $10.738 $11.016 0 2008 $11.016 $8.171 0 2009 $8.171 $11.686 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2003 $10.554 $13.282 0 2004 $13.282 $15.049 0 2005 $15.049 $16.465 0 2006 $16.465 $20.507 0 2007 $20.507 $21.667 0 2008 $21.667 $11.841 0 2009 $11.841 $14.390 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT INVESTORS FUND--CLASS IB 2003 $10.670 $12.894 0 2004 $12.894 $14.163 0 2005 $14.163 $15.027 0 2006 $15.027 $16.696 0 2007 $16.696 $15.437 0 2008 $15.437 $9.099 0 2009 $9.099 $11.607 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2003 $9.917 $9.779 0 2004 $9.779 $9.598 0 2005 $9.598 $9.597 0 2006 $9.597 $9.770 0 2007 $9.770 $9.981 0 2008 $9.981 $9.982 0 2009 $9.982 $9.754 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 176 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2003 $10.957 $13.395 0 2004 $13.395 $14.408 0 2005 $14.408 $15.456 0 2006 $15.456 $16.362 0 2007 $16.362 $16.868 0 2008 $16.868 $10.074 0 2009 $10.074 $12.980 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT NEW VALUE FUND--CLASS IB 2003 $11.298 $14.464 0 2004 $14.464 $16.280 0 2005 $16.280 $16.812 0 2006 $16.812 $19.020 0 2007 $19.020 $17.637 0 2008 $17.637 $9.500 0 2009 $9.500 $8.935 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT RESEARCH FUND--CLASS IB 2003 $10.819 $12.997 356 2004 $12.997 $13.632 481 2005 $13.632 $13.960 478 2006 $13.960 $15.153 0 2007 $15.153 $14.856 0 2008 $14.856 $8.902 0 2009 $8.902 $11.561 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2003 $10.660 $11.992 0 2004 $11.992 $12.654 0 2005 $12.654 $12.833 0 2006 $12.833 $14.006 0 2007 $14.006 $13.786 0 2008 $13.786 $7.968 0 2009 $7.968 $9.761 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2003 $11.623 $13.975 0 2004 $13.975 $16.543 0 2005 $16.543 $17.516 0 2006 $17.516 $21.699 0 2007 $21.699 $25.376 0 2008 $25.376 $17.199 0 2009 $17.199 $18.004 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 177 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND--CLASS IB 2003 $10.776 $13.460 0 2004 $13.460 $15.567 0 2005 $15.567 $17.025 0 2006 $17.025 $17.507 0 2007 $17.507 $17.719 0 2008 $17.719 $9.408 0 2009 $9.408 $12.729 0 - -------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND--CLASS IB 2003 $10.557 $12.305 0 2004 $12.305 $12.603 0 2005 $12.603 $12.989 0 2006 $12.989 $13.355 0 2007 $13.355 $13.740 0 2008 $13.740 $8.436 0 2009 $8.436 $13.482 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.062 0 2005 $11.062 $11.986 0 2006 $11.986 $12.263 0 2007 $12.263 $14.061 0 2008 $14.061 $7.289 0 2009 $7.289 $11.114 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.274 0 2005 $11.274 $11.446 0 2006 $11.446 $12.952 0 2007 $12.952 $12.334 0 2008 $12.334 $7.721 0 2009 $7.721 $9.667 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2003 $9.909 $11.650 0 2004 $11.650 $12.129 0 2005 $12.129 $12.732 0 2006 $12.732 $12.742 0 2007 $12.742 $14.490 0 2008 $14.490 $7.189 0 2009 $7.189 $11.612 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2003 $10.757 $13.254 354 2004 $13.254 $14.749 476 2005 $14.749 $15.781 499 2006 $15.781 $17.848 625 2007 $17.848 $17.840 621 2008 $17.840 $11.792 617 2009 $11.792 $14.270 611 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 178 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - --------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.805 0 2005 $9.805 $9.793 0 2006 $9.793 $9.948 0 2007 $9.948 $10.132 0 2008 $10.132 $10.056 0 2009 $10.056 $9.815 0 - --------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2003 $12.265 $13.770 0 2004 $13.770 $14.780 0 2005 $14.780 $16.162 0 2006 $16.162 $17.464 0 2007 $17.464 $18.115 0 2008 $18.115 $15.018 0 2009 $15.018 $19.054 0 - --------------------------------------------------------------------------------------------------- UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.900 0 2005 $10.900 $11.413 0 2006 $11.413 $12.530 0 2007 $12.530 $12.627 0 2008 $12.627 $9.520 0 2009 $9.520 $11.370 0 - --------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.697 0 2005 $10.697 $12.071 0 2006 $12.071 $12.254 688,857 2007 $12.254 $14.565 851 2008 $14.565 $7.216 845 2009 $7.216 $11.649 838 - --------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.672 0 2005 $10.672 $12.018 0 2006 $12.018 $12.166 0 2007 $12.166 $14.432 0 2008 $14.432 $7.127 0 2009 $7.127 $11.478 0 - --------------------------------------------------------------------------------------------------- UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $10.996 0 2005 $10.996 $12.007 0 2006 $12.007 $14.228 0 2007 $14.228 $15.228 0 2008 $15.228 $10.551 0 2009 $10.551 $13.331 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 5 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.3 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 2.30% and an administrative expense charge of 0.19%. 179 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.772 0 2007 $9.772 $11.682 0 2008 $11.682 $6.058 0 2009 $6.058 $9.296 0 - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.510 0 2004 $13.510 $15.670 0 2005 $15.670 $17.250 0 2006 $17.250 $18.813 211 2007 $18.813 $18.885 210 2008 $18.885 $10.968 208 2009 $10.968 $15.684 207 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.237 629 2005 $11.237 $12.307 313 2006 $12.307 $14.486 311 2007 $14.486 $15.231 309 2008 $15.231 $8.719 307 2009 $8.719 $11.835 304 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.231 0 2005 $11.231 $12.282 0 2006 $12.282 $14.447 0 2007 $14.447 $15.176 0 2008 $15.176 $8.668 0 2009 $8.668 $11.763 0 - ------------------------------------------------------------------------------------------------ UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2003 $11.357 $14.402 0 2004 $14.402 $19.109 0 2005 $19.109 $21.756 0 2006 $21.756 $29.208 0 2007 $29.208 $23.558 0 2008 $23.558 $14.228 0 2009 $14.228 $17.827 0 - ------------------------------------------------------------------------------------------------ PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $11.976 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 180 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.263 414,282 2007 $10.263 $11.834 723,702 2008 $11.834 $6.667 709,286 2009 $6.667 $8.879 601,778 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.454 130,383 2007 $10.454 $11.142 148,898 2008 $11.142 $8.197 65,773 2009 $8.197 $9.989 55,401 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.484 36,399 2007 $10.484 $11.333 99,598 2008 $11.333 $7.487 65,030 2009 $7.487 $9.462 27,133 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.493 42,087 2007 $10.493 $11.458 40,167 2008 $11.458 $6.964 88,559 2009 $6.964 $8.981 82,513 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.345 9,730 2007 $10.345 $10.771 10,156 2008 $10.771 $9.455 4,355 2009 $9.455 $10.656 3,997 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.739 7,984 2007 $9.739 $11.710 10,829 2008 $11.710 $6.358 16,378 2009 $6.358 $9.027 9,794 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.816 37,450 2007 $10.816 $11.184 47,278 2008 $11.184 $6.909 85,968 2009 $6.909 $8.579 72,421 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.872 94,755 2007 $9.872 $11.192 192,846 2008 $11.192 $6.645 203,011 2009 $6.645 $9.130 175,340 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 181 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.851 347 2003 $10.851 $13.409 117,457 2004 $13.409 $14.582 236,098 2005 $14.582 $14.840 310,781 2006 $14.840 $17.034 302,687 2007 $17.034 $16.124 261,390 2008 $16.124 $10.280 205,726 2009 $10.280 $12.790 177,653 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.233 66,922 2005 $11.233 $11.221 1,005,366 2006 $11.221 $13.044 2,122,022 2007 $13.044 $13.304 2,815,817 2008 $13.304 $9.200 2,181,007 2009 $9.200 $12.264 1,764,424 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.523 2,116 2005 $10.523 $10.455 378,307 2006 $10.455 $11.399 825,544 2007 $11.399 $11.903 1,001,796 2008 $11.903 $7.661 880,173 2009 $7.661 $9.771 773,389 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2002 $10.000 $11.535 434 2003 $11.535 $15.564 4,327 2004 $15.564 $17.057 3,941 2005 $17.057 $17.572 8,813 2006 $17.572 $18.778 7,164 2007 $18.778 $20.534 5,267 2008 $20.534 $11.608 2,199 2009 $11.608 $16.384 1,637 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2002 $10.000 $11.225 860 2003 $11.225 $14.581 101,030 2004 $14.581 $17.739 168,475 2005 $17.739 $18.969 285,208 2006 $18.969 $21.816 356,890 2007 $21.816 $20.935 345,544 2008 $20.935 $13.785 247,439 2009 $13.785 $17.504 206,772 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 182 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - --------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.246 42,893 2005 $10.246 $10.315 136,448 2006 $10.315 $10.549 257,214 2007 $10.549 $11.055 355,522 2008 $11.055 $11.693 492,222 2009 $11.693 $11.851 483,472 - --------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $11.011 320,169 2007 $11.011 $12.107 558,370 2008 $12.107 $8.515 496,269 2009 $8.515 $10.323 331,500 - --------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2002 $10.000 $10.324 2,174 2003 $10.324 $12.703 148,918 2004 $12.703 $14.065 358,905 2005 $14.065 $15.288 688,072 2006 $15.288 $17.793 1,079,337 2007 $17.793 $18.099 1,269,936 2008 $18.099 $11.190 1,016,065 2009 $11.190 $13.867 797,516 - --------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2002 $10.000 $11.233 0 2003 $11.233 $16.896 54,196 2004 $16.896 $20.715 85,691 2005 $20.715 $25.952 122,683 2006 $25.952 $32.682 166,538 2007 $32.682 $41.374 194,282 2008 $41.374 $19.236 150,573 2009 $19.236 $32.639 122,960 - --------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2002 $10.000 $10.475 640 2003 $10.475 $13.616 53,801 2004 $13.616 $15.866 104,501 2005 $15.866 $17.185 354,268 2006 $17.185 $20.518 733,746 2007 $20.518 $23.288 922,024 2008 $23.288 $13.649 778,137 2009 $13.649 $18.389 662,465 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 183 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.721 135 2003 $10.721 $12.905 12,812 2004 $12.905 $14.556 4,209 2005 $14.556 $13.871 5,030 2006 $13.871 $15.378 5,249 2007 $15.378 $16.780 3,012 2008 $16.780 $17.521 4,760 2009 $17.521 $20.443 3,046 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.909 1,724 2005 $10.909 $11.471 75,627 2006 $11.471 $12.929 147,228 2007 $12.929 $13.563 126,050 2008 $13.563 $9.511 98,141 2009 $9.511 $11.779 102,450 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.360 3,670 2005 $10.360 $10.319 188,567 2006 $10.319 $11.091 388,338 2007 $11.091 $11.577 495,383 2008 $11.577 $9.386 389,523 2009 $9.386 $12.393 331,061 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.893 11,058 2005 $10.893 $11.057 149,184 2006 $11.057 $12.749 311,007 2007 $12.749 $12.963 391,344 2008 $12.963 $8.102 269,542 2009 $8.102 $9.471 227,548 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.141 2,150 2005 $11.141 $11.460 37,104 2006 $11.460 $12.156 134,749 2007 $12.156 $14.493 199,136 2008 $14.493 $8.799 163,727 2009 $8.799 $12.590 155,579 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.124 16 2005 $11.124 $11.836 431,792 2006 $11.836 $13.060 720,550 2007 $13.060 $12.913 767,839 2008 $12.913 $7.698 649,218 2009 $7.698 $9.582 528,877 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 184 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.060 0 2003 $10.060 $12.406 22,549 2004 $12.406 $14.567 68,809 2005 $14.567 $16.038 102,358 2006 $16.038 $16.193 132,006 2007 $16.193 $16.879 111,355 2008 $16.879 $8.427 65,981 2009 $8.427 $10.958 57,944 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2002 $10.000 $10.696 0 2003 $10.696 $13.112 73,942 2004 $13.112 $14.152 124,555 2005 $14.152 $14.425 184,065 2006 $14.425 $15.722 190,342 2007 $15.722 $15.993 170,766 2008 $15.993 $8.865 129,736 2009 $8.865 $10.598 124,736 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.108 274 2005 $10.108 $10.169 55,948 2006 $10.169 $10.491 456,364 2007 $10.491 $10.734 845,679 2008 $10.734 $6.429 791,707 2009 $6.429 $6.893 755,522 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.289 45,608 2004 $12.289 $12.881 124,466 2005 $12.881 $13.280 313,104 2006 $13.280 $14.059 394,571 2007 $14.059 $15.735 358,649 2008 $15.735 $8.405 328,673 2009 $8.405 $11.912 258,339 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2002 $10.000 $10.148 0 2003 $10.148 $14.253 38,933 2004 $14.253 $16.657 62,907 2005 $16.657 $18.679 59,949 2006 $18.679 $21.553 90,930 2007 $21.553 $22.475 82,603 2008 $22.475 $13.184 61,365 2009 $13.184 $18.062 47,429 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 185 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2002 $10.000 $10.661 508 2003 $10.661 $12.975 81,371 2004 $12.975 $13.869 165,436 2005 $13.869 $13.909 197,061 2006 $13.909 $14.936 160,880 2007 $14.936 $14.614 134,180 2008 $14.614 $3.078 135,257 2009 $3.078 $3.811 139,723 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2002 $10.000 $10.177 1,007 2003 $10.177 $12.650 83,324 2004 $12.650 $13.574 196,103 2005 $13.574 $14.111 446,470 2006 $14.111 $15.921 653,766 2007 $15.921 $16.300 674,700 2008 $16.300 $9.835 587,158 2009 $9.835 $12.375 499,694 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.354 745 2003 $10.354 $14.682 58,798 2004 $14.682 $17.203 106,502 2005 $17.203 $18.556 180,178 2006 $18.556 $20.918 260,535 2007 $20.918 $20.276 252,429 2008 $20.276 $12.357 187,285 2009 $12.357 $16.629 145,775 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2002 $10.000 $10.551 0 2003 $10.551 $12.153 261,984 2004 $12.153 $12.955 475,970 2005 $12.955 $13.052 837,415 2006 $13.052 $13.761 941,030 2007 $13.761 $14.819 918,620 2008 $14.819 $12.458 681,916 2009 $12.458 $14.502 542,217 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2002 $10.000 $10.388 0 2003 $10.388 $12.448 12,054 2004 $12.448 $13.353 35,146 2005 $13.353 $14.043 132,476 2006 $14.043 $15.582 172,913 2007 $15.582 $15.767 162,161 2008 $15.767 $10.335 107,317 2009 $10.335 $13.738 95,280 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 186 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------ PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $10.798 1,666 2003 $10.798 $14.075 15,549 2004 $14.075 $14.771 186,092 2005 $14.771 $15.281 223,540 2006 $15.281 $17.414 189,319 2007 $17.414 $16.084 159,148 2008 $16.084 $9.693 116,929 2009 $9.693 $12.370 100,412 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2002 $10.000 $9.724 0 2003 $9.724 $11.317 24,389 2004 $11.317 $11.919 34,838 2005 $11.919 $13.264 31,655 2006 $13.264 $13.405 24,547 2007 $13.405 $13.098 12,934 2008 $13.098 $10.678 23,876 2009 $10.678 $13.227 21,918 - ------------------------------------------------------------------------------------------------------ PUTNAM VT HIGH YIELD FUND--CLASS IB 2002 $10.000 $10.741 1,550 2003 $10.741 $13.362 114,140 2004 $13.362 $14.521 182,596 2005 $14.521 $14.718 293,917 2006 $14.718 $15.993 301,544 2007 $15.993 $16.161 305,846 2008 $16.161 $11.746 217,102 2009 $11.746 $17.342 215,207 - ------------------------------------------------------------------------------------------------------ PUTNAM VT INCOME FUND--CLASS IB 2002 $10.000 $10.185 1,811 2003 $10.185 $10.456 155,621 2004 $10.456 $10.735 329,460 2005 $10.735 $10.803 676,821 2006 $10.803 $11.101 914,327 2007 $11.101 $11.482 932,946 2008 $11.482 $8.587 701,127 2009 $8.587 $12.381 537,163 - ------------------------------------------------------------------------------------------------------ PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2002 $10.000 $10.604 319 2003 $10.604 $13.399 50,972 2004 $13.399 $15.306 72,525 2005 $15.306 $16.884 136,789 2006 $16.884 $21.200 208,019 2007 $21.200 $22.584 267,987 2008 $22.584 $12.444 235,795 2009 $12.444 $15.247 216,061 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 187 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------- PUTNAM VT INVESTORS FUND--CLASS IB 2002 $10.000 $10.407 150 2003 $10.407 $13.008 41,343 2004 $13.008 $14.405 41,743 2005 $14.405 $15.409 60,847 2006 $15.409 $17.260 59,846 2007 $17.260 $16.090 56,727 2008 $16.090 $9.562 57,533 2009 $9.562 $12.299 53,186 - ---------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2002 $10.000 $9.985 0 2003 $9.985 $9.865 652,592 2004 $9.865 $9.763 641,522 2005 $9.763 $9.841 952,353 2006 $9.841 $10.100 1,202,292 2007 $10.100 $10.404 1,302,640 2008 $10.404 $10.491 895,485 2009 $10.491 $10.335 1,009,635 - ---------------------------------------------------------------------------------------------- PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2002 $10.000 $10.379 1,640 2003 $10.379 $13.513 20,679 2004 $13.513 $14.654 33,167 2005 $14.654 $15.849 32,056 2006 $15.849 $16.915 20,031 2007 $16.915 $17.582 4,574 2008 $17.582 $10.587 3,141 2009 $10.587 $13.753 2,744 - ---------------------------------------------------------------------------------------------- PUTNAM VT NEW VALUE FUND--CLASS IB 2002 $10.000 $11.204 424 2003 $11.204 $14.592 48,650 2004 $14.592 $16.559 96,870 2005 $16.559 $17.239 252,139 2006 $17.239 $19.663 343,255 2007 $19.663 $18.384 382,838 2008 $18.384 $9.984 325,754 2009 $9.984 $9.399 0 - ---------------------------------------------------------------------------------------------- PUTNAM VT RESEARCH FUND--CLASS IB 2002 $10.000 $10.642 0 2003 $10.642 $13.112 7,152 2004 $13.112 $13.865 14,354 2005 $13.865 $14.315 14,048 2006 $14.315 $15.665 13,472 2007 $15.665 $15.485 9,001 2008 $15.485 $9.355 10,330 2009 $9.355 $12.250 6,797 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 188 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2002 $10.000 $10.515 2,030 2003 $10.515 $12.098 79,093 2004 $12.098 $12.870 157,776 2005 $12.870 $13.159 218,982 2006 $13.159 $14.480 184,184 2007 $14.480 $14.370 248,096 2008 $14.370 $8.374 166,587 2009 $8.374 $10.342 141,098 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $11.470 0 2003 $11.470 $14.075 15,549 2004 $14.075 $16.826 25,933 2005 $16.826 $17.961 23,337 2006 $17.961 $22.432 18,945 2007 $22.432 $26.449 13,069 2008 $26.449 $18.074 8,045 2009 $18.074 $19.076 6,771 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND--CLASS IB 2002 $10.000 $10.372 2,547 2003 $10.372 $13.579 50,687 2004 $13.579 $15.833 82,701 2005 $15.833 $17.458 64,526 2006 $17.458 $18.099 58,064 2007 $18.099 $18.470 51,749 2008 $18.470 $9.887 29,195 2009 $9.887 $13.487 18,368 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VOYAGER FUND--CLASS IB 2002 $10.000 $10.109 617 2003 $10.109 $12.414 153,342 2004 $12.414 $12.818 248,311 2005 $12.818 $13.320 317,126 2006 $13.320 $13.807 316,832 2007 $13.807 $14.322 249,085 2008 $14.322 $8.865 189,190 2009 $8.865 $14.284 131,514 - ------------------------------------------------------------------------------------------------------------------ VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.122 49,268 2005 $11.122 $12.150 62,073 2006 $12.150 $12.533 45,545 2007 $12.533 $14.489 39,401 2008 $14.489 $7.573 12,991 2009 $7.573 $11.641 9,989 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 189 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.336 53,964 2005 $11.336 $11.603 402,711 2006 $11.603 $13.237 647,016 2007 $13.237 $12.709 665,447 2008 $12.709 $8.021 537,414 2009 $8.021 $10.126 407,245 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2002 $10.000 $9.410 0 2003 $9.410 $11.753 31,986 2004 $11.753 $12.337 49,070 2005 $12.337 $13.056 81,791 2006 $13.056 $13.172 88,072 2007 $13.172 $15.104 83,140 2008 $15.104 $7.555 61,776 2009 $7.555 $12.304 53,009 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2002 $10.000 $10.653 0 2003 $10.653 $13.371 74,198 2004 $13.371 $15.002 146,747 2005 $15.002 $16.182 296,595 2006 $16.182 $18.451 387,496 2007 $18.451 $18.595 334,095 2008 $18.595 $12.392 257,830 2009 $12.392 $15.120 219,842 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.885 95,428 2005 $9.885 $9.955 276,059 2006 $9.955 $10.195 280,454 2007 $10.195 $10.468 394,938 2008 $10.468 $10.475 436,606 2009 $10.475 $10.306 0 - -------------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2002 $10.000 $11.059 0 2003 $11.059 $13.891 12,459 2004 $13.891 $15.033 61,335 2005 $15.033 $16.573 87,995 2006 $16.573 $18.054 103,578 2007 $18.054 $18.882 98,940 2008 $18.882 $15.782 58,386 2009 $15.782 $20.188 54,461 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 190 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.959 70,540 2005 $10.959 $11.570 222,716 2006 $11.570 $12.805 415,319 2007 $12.805 $13.011 401,611 2008 $13.011 $9.890 326,479 2009 $9.890 $11.909 245,044 - ------------------------------------------------------------------------------------------------ UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.756 63,467 2005 $10.756 $12.236 57,712 2006 $12.236 $12.524 44,233 2007 $12.524 $15.008 18,828 2008 $15.008 $7.497 15,161 2009 $7.497 $12.202 9,385 - ------------------------------------------------------------------------------------------------ UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.731 41,130 2005 $10.731 $12.183 39,564 2006 $12.183 $12.434 34,463 2007 $12.434 $14.871 30,048 2008 $14.871 $7.405 31,018 2009 $7.405 $12.022 21,686 - ------------------------------------------------------------------------------------------------ UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $11.086 36,213 2005 $11.086 $12.205 306,837 2006 $12.205 $14.580 671,532 2007 $14.580 $15.734 793,322 2008 $15.734 $10.992 696,993 2009 $10.992 $14.000 582,715 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.826 151,344 2007 $9.826 $11.844 287,553 2008 $11.844 $6.192 303,564 2009 $6.192 $9.580 218,132 - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.584 13,341 2004 $13.584 $15.885 33,746 2005 $15.885 $17.630 45,386 2006 $17.630 $19.384 35,762 2007 $19.384 $19.619 33,493 2008 $19.619 $11.488 39,583 2009 $11.488 $16.562 23,722 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.5 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.50% and an administrative expense charge of 0.19%. 191 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------- UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.299 104,318 2005 $11.299 $12.476 113,259 2006 $12.476 $14.804 85,256 2007 $14.804 $15.694 65,948 2008 $15.694 $9.058 32,724 2009 $9.058 $12.397 24,906 - ---------------------------------------------------------------------------------------------- UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.292 33,745 2005 $11.292 $12.451 71,563 2006 $12.451 $14.765 150,213 2007 $14.765 $15.638 209,679 2008 $15.638 $9.006 181,842 2009 $9.006 $12.320 160,274 - ---------------------------------------------------------------------------------------------- UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2002 $10.000 $10.701 0 2003 $10.701 $14.529 19,376 2004 $14.529 $19.436 121,865 2005 $19.436 $22.309 275,668 2006 $22.309 $30.195 378,389 2007 $30.195 $24.555 372,415 2008 $24.555 $14.953 326,604 2009 $14.953 $18.888 264,687 - ---------------------------------------------------------------------------------------------- PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $12.689 283,803 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 192 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.200 0 2007 $10.200 $11.653 0 2008 $11.653 $6.505 0 2009 $6.505 $8.584 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.390 0 2007 $10.390 $10.972 0 2008 $10.972 $7.998 0 2009 $7.998 $9.657 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.420 0 2007 $10.420 $11.160 0 2008 $11.160 $7.305 0 2009 $7.305 $9.147 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.428 0 2007 $10.428 $11.282 0 2008 $11.282 $6.795 0 2009 $6.795 $8.682 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.281 0 2007 $10.281 $10.606 0 2008 $10.606 $9.225 0 2009 $9.225 $10.302 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.680 0 2007 $9.680 $11.531 0 2008 $11.531 $6.203 0 2009 $6.203 $8.727 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.750 0 2007 $10.750 $11.012 0 2008 $11.012 $6.741 0 2009 $6.741 $8.293 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.811 0 2007 $9.811 $11.021 0 2008 $11.021 $6.483 0 2009 $6.483 $8.826 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 193 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2003 $10.675 $13.275 544 2004 $13.275 $14.304 1,424 2005 $14.304 $14.424 1,453 2006 $14.424 $16.406 423 2007 $16.406 $15.386 428 2008 $15.386 $9.720 938 2009 $9.720 $11.983 628 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.164 0 2005 $11.164 $11.050 467 2006 $11.050 $12.728 508 2007 $12.728 $12.862 485 2008 $12.862 $8.813 450 2009 $8.813 $11.641 449 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.499 0 2005 $10.499 $10.336 0 2006 $10.336 $11.166 0 2007 $11.166 $11.553 0 2008 $11.553 $7.368 0 2009 $7.368 $9.311 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2003 $11.794 $15.409 0 2004 $15.409 $16.732 0 2005 $16.732 $17.080 0 2006 $17.080 $18.085 0 2007 $18.085 $19.595 0 2008 $19.595 $10.975 0 2009 $10.975 $15.350 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2003 $11.014 $14.435 4,865 2004 $14.435 $17.401 5,390 2005 $17.401 $18.438 5,354 2006 $18.438 $21.012 873 2007 $21.012 $19.977 754 2008 $19.977 $13.034 697 2009 $13.034 $16.398 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.183 0 2005 $10.183 $10.158 0 2006 $10.158 $10.294 0 2007 $10.294 $10.688 0 2008 $10.688 $11.201 0 2009 $11.201 $11.249 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 194 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $10.943 0 2007 $10.943 $11.921 0 2008 $11.921 $8.308 675 2009 $8.308 $9.980 731 - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2003 $10.575 $12.576 3,040 2004 $12.576 $13.797 4,637 2005 $13.797 $14.860 4,937 2006 $14.860 $17.137 1,078 2007 $17.137 $17.271 1,022 2008 $17.271 $10.580 939 2009 $10.580 $12.991 613 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2003 $11.648 $16.727 1,444 2004 $16.727 $20.321 1,931 2005 $20.321 $25.226 1,763 2006 $25.226 $31.477 324 2007 $31.477 $39.483 280 2008 $39.483 $18.188 259 2009 $18.188 $30.579 0 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2003 $10.354 $13.480 0 2004 $13.480 $15.564 0 2005 $15.564 $16.704 0 2006 $16.704 $19.762 512 2007 $19.762 $22.223 442 2008 $22.223 $12.906 409 2009 $12.906 $17.228 0 - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2003 $11.557 $12.776 0 2004 $12.776 $14.279 0 2005 $14.279 $13.482 0 2006 $13.482 $14.811 0 2007 $14.811 $16.013 0 2008 $16.013 $16.566 0 2009 $16.566 $19.152 0 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.884 0 2005 $10.884 $11.340 318 2006 $11.340 $12.665 344 2007 $12.665 $13.164 329 2008 $13.164 $9.146 305 2009 $9.146 $11.224 304 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 195 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.336 0 2005 $10.336 $10.201 170 2006 $10.201 $10.865 185 2007 $10.865 $11.236 176 2008 $11.236 $9.026 164 2009 $9.026 $11.809 163 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.868 0 2005 $10.868 $10.932 324 2006 $10.932 $12.489 1,925 2007 $12.489 $12.582 1,695 2008 $12.582 $7.792 1,569 2009 $7.792 $9.024 311 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.116 0 2005 $11.116 $11.330 0 2006 $11.330 $11.908 0 2007 $11.908 $14.067 0 2008 $14.067 $8.462 0 2009 $8.462 $11.997 0 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.099 0 2005 $11.099 $11.701 307 2006 $11.701 $12.793 1,834 2007 $12.793 $12.533 1,614 2008 $12.533 $7.403 1,494 2009 $7.403 $9.131 294 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2003 $10.314 $12.283 0 2004 $12.283 $14.289 0 2005 $14.289 $15.589 0 2006 $15.589 $15.596 0 2007 $15.596 $16.107 0 2008 $16.107 $7.968 0 2009 $7.968 $10.266 0 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2003 $11.079 $12.981 0 2004 $12.981 $13.883 212 2005 $13.883 $14.021 526 2006 $14.021 $15.142 300 2007 $15.142 $15.262 285 2008 $15.262 $8.382 321 2009 $8.382 $9.928 304 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 196 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.084 0 2005 $10.084 $10.053 0 2006 $10.053 $10.277 0 2007 $10.277 $10.418 0 2008 $10.418 $6.183 0 2009 $6.183 $6.568 0 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.214 995 2004 $12.214 $12.685 2,545 2005 $12.685 $12.958 2,564 2006 $12.958 $13.593 896 2007 $13.593 $15.074 792 2008 $15.074 $7.978 792 2009 $7.978 $11.203 355 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2003 $10.056 $14.111 0 2004 $14.111 $16.340 0 2005 $16.340 $18.156 0 2006 $18.156 $20.759 0 2007 $20.759 $21.448 0 2008 $21.448 $12.465 0 2009 $12.465 $16.921 0 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2003 $11.702 $12.845 0 2004 $12.845 $13.605 612 2005 $13.605 $13.520 1,545 2006 $13.520 $14.385 895 2007 $14.385 $13.945 884 2008 $13.945 $2.910 2,605 2009 $2.910 $3.571 2,405 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2003 $10.436 $12.524 6,474 2004 $12.524 $13.315 7,620 2005 $13.315 $13.716 7,865 2006 $13.716 $15.334 1,003 2007 $15.334 $15.555 952 2008 $15.555 $9.299 878 2009 $9.299 $11.594 505 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2003 $10.686 $14.536 487 2004 $14.536 $16.875 802 2005 $16.875 $18.037 772 2006 $18.037 $20.146 346 2007 $20.146 $19.349 345 2008 $19.349 $11.684 302 2009 $11.684 $15.579 18 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 197 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------ OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2003 $11.218 $12.031 0 2004 $11.218 $12.708 1,731 2005 $12.708 $12.687 2,773 2006 $12.687 $13.253 2,387 2007 $13.253 $14.141 2,094 2008 $14.141 $11.779 1,772 2009 $11.779 $13.587 632 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2003 $10.724 $12.324 6,221 2004 $12.324 $13.098 9,245 2005 $13.098 $13.650 9,405 2006 $13.650 $15.007 202 2007 $15.007 $15.046 193 2008 $15.046 $9.772 184 2009 $9.772 $12.871 156 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2003 $10.965 $13.387 7,904 2004 $13.387 $14.490 8,998 2005 $14.490 $14.853 9,101 2006 $14.853 $16.772 738 2007 $16.772 $15.349 772 2008 $15.349 $9.165 381 2009 $9.165 $11.589 24 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2003 $10.207 $11.204 0 2004 $11.204 $11.691 0 2005 $11.691 $12.893 0 2006 $12.893 $12.910 0 2007 $12.910 $12.499 0 2008 $12.499 $10.096 0 2009 $10.096 $12.392 0 - ------------------------------------------------------------------------------------------------------ PUTNAM VT HIGH YIELD FUND--CLASS IB 2003 $11.835 $13.228 0 2004 $13.228 $14.244 686 2005 $14.244 $14.306 1,015 2006 $14.306 $15.403 295 2007 $15.403 $15.421 282 2008 $15.421 $11.106 241 2009 $11.106 $16.248 187 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 198 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- PUTNAM VT INCOME FUND--CLASS IB 2003 $10.329 $10.351 0 2004 $10.351 $10.530 1,298 2005 $10.530 $10.500 1,361 2006 $10.500 $10.692 1,743 2007 $10.692 $10.957 1,505 2008 $10.957 $8.120 1,393 2009 $8.120 $11.600 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2003 $10.548 $13.265 3,566 2004 $13.265 $15.015 4,094 2005 $15.015 $16.411 4,031 2006 $16.411 $20.419 0 2007 $20.419 $21.551 0 2008 $21.551 $11.766 0 2009 $11.766 $14.284 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT INVESTORS FUND--CLASS IB 2003 $10.664 $12.878 0 2004 $12.878 $14.131 0 2005 $14.131 $14.978 0 2006 $14.978 $16.624 0 2007 $16.624 $15.354 0 2008 $15.354 $9.041 0 2009 $9.041 $11.522 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2003 $9.911 $9.767 0 2004 $9.767 $9.576 1,427 2005 $9.576 $9.565 1,494 2006 $9.565 $9.728 0 2007 $9.728 $9.928 0 2008 $9.928 $9.919 0 2009 $9.919 $9.682 1,043 - ------------------------------------------------------------------------------------------------- PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2003 $10.951 $13.378 1,010 2004 $13.378 $14.375 937 2005 $14.375 $15.405 885 2006 $15.405 $16.291 859 2007 $16.291 $16.778 812 2008 $16.778 $10.010 442 2009 $10.010 $12.885 27 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 199 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT NEW VALUE FUND--CLASS IB 2003 $11.292 $14.446 0 2004 $14.446 $16.244 421 2005 $16.244 $16.757 426 2006 $16.757 $18.938 0 2007 $18.938 $17.543 0 2008 $17.543 $9.439 0 2009 $9.439 $8.877 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT RESEARCH FUND--CLASS IB 2003 $10.813 $12.981 0 2004 $12.981 $13.601 0 2005 $13.601 $13.914 0 2006 $13.914 $15.088 0 2007 $15.088 $14.777 0 2008 $14.777 $8.846 0 2009 $8.846 $11.476 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2003 $10.654 $11.977 427 2004 $11.977 $12.625 712 2005 $12.625 $12.791 1,171 2006 $12.791 $13.946 820 2007 $13.946 $13.712 807 2008 $13.712 $7.918 453 2009 $7.918 $9.689 415 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2003 $11.616 $13.935 0 2004 $13.935 $16.506 0 2005 $16.506 $17.459 0 2006 $17.459 $21.606 0 2007 $21.606 $25.240 0 2008 $25.240 $17.089 0 2009 $17.089 $17.871 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND--CLASS IB 2003 $10.770 $13.443 3,822 2004 $13.443 $15.532 4,339 2005 $15.532 $16.969 4,183 2006 $16.969 $17.432 1,376 2007 $17.432 $17.625 1,225 2008 $17.625 $9.348 1,157 2009 $9.348 $12.635 22 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 200 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND--CLASS IB 2003 $10.551 $12.290 8,426 2004 $12.290 $12.574 10 2005 $12.574 $12.947 10,159 2006 $12.947 $13.298 2,422 2007 $13.298 $13.666 2,185 2008 $13.666 $8.382 1,624 2009 $8.382 $13.382 26 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.054 4,384 2005 $11.054 $11.965 4,325 2006 $11.965 $12.230 562 2007 $12.230 $14.008 479 2008 $14.008 $7.254 481 2009 $7.254 $11.050 25 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.266 0 2005 $11.266 $11.426 0 2006 $11.426 $12.917 0 2007 $12.917 $12.288 0 2008 $12.288 $7.684 0 2009 $7.684 $9.611 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2003 $9.903 $11.635 1,920 2004 $11.635 $12.102 2,937 2005 $12.102 $12.690 2,926 2006 $12.690 $12.687 0 2007 $12.687 $14.413 0 2008 $14.413 $7.144 0 2009 $7.144 $11.527 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2003 $10.751 $13.238 938 2004 $13.238 $14.716 804 2005 $14.716 $15.729 752 2006 $15.729 $17.771 699 2007 $17.771 $17.745 667 2008 $17.745 $11.717 542 2009 $11.717 $14.165 271 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.794 1,001 2005 $9.794 $9.773 2,515 2006 $9.773 $9.918 1,527 2007 $9.918 $10.090 1,438 2008 $10.090 $10.005 886 2009 $10.005 $9.756 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 201 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2003 $12.258 $13.752 0 2004 $13.752 $14.746 166 2005 $14.746 $16.109 381 2006 $16.109 $17.388 772 2007 $17.388 $18.019 680 2008 $18.019 $14.923 591 2009 $14.923 $18.914 134 - ------------------------------------------------------------------------------------------------- UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.892 0 2005 $10.892 $11.394 0 2006 $11.394 $12.496 0 2007 $12.496 $12.579 0 2008 $12.579 $9.474 0 2009 $9.474 $11.304 0 - ------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.690 478 2005 $10.690 $12.050 422 2006 $12.050 $12.221 433 2007 $12.221 $14.510 365 2008 $14.510 $7.181 390 2009 $7.181 $11.581 318 - ------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.665 1,922 2005 $10.665 $11.998 1,786 2006 $11.998 $12.133 0 2007 $12.133 $14.377 0 2008 $14.377 $7.093 0 2009 $7.093 $11.411 0 - ------------------------------------------------------------------------------------------------- UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $10.985 0 2005 $10.985 $11.983 0 2006 $11.983 $14.184 0 2007 $14.184 $15.166 0 2008 $15.166 $10.497 0 2009 $10.497 $13.249 0 - ------------------------------------------------------------------------------------------------- UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.766 0 2007 $9.766 $11.662 0 2008 $11.662 $6.041 0 2009 $6.041 $9.261 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH 3 YEAR WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.4 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 2.40% and an administrative expense charge of 0.19%. 202 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.501 0 2004 $13.501 $15.644 0 2005 $15.644 $17.203 0 2006 $17.203 $18.742 941 2007 $18.742 $18.795 812 2008 $18.795 $10.904 752 2009 $10.904 $15.577 0 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.229 1,052 2005 $11.229 $12.286 975 2006 $12.286 $14.446 861 2007 $14.446 $15.174 788 2008 $15.174 $8.677 746 2009 $8.677 $11.767 338 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.223 0 2005 $11.223 $12.261 0 2006 $12.261 $14.408 0 2007 $14.408 $15.119 0 2008 $15.119 $8.627 0 2009 $8.627 $11.694 0 - ------------------------------------------------------------------------------------------------ UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2003 $11.351 $14.384 0 2004 $14.384 $19.066 129 2005 $19.066 $21.685 283 2006 $21.685 $29.083 498 2007 $29.083 $23.432 473 2008 $23.432 $14.138 458 2009 $14.138 $17.695 140 - ------------------------------------------------------------------------------------------------ PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $11.888 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 203 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.256 101,761 2007 $10.256 $11.814 99,784 2008 $11.814 $6.649 90,797 2009 $6.649 $8.846 99,596 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.447 0 2007 $10.447 $11.123 18,543 2008 $11.123 $8.175 53,234 2009 $8.175 $9.952 38,273 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.477 1,372 2007 $10.477 $11.314 1,363 2008 $11.314 $7.467 18,158 2009 $7.467 $9.426 21,246 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.486 0 2007 $10.486 $11.438 0 2008 $11.438 $6.945 4,122 2009 $6.945 $8.948 13,145 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.338 0 2007 $10.338 $10.753 1,648 2008 $10.753 $9.430 0 2009 $9.430 $10.617 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.733 6,172 2007 $9.733 $11.690 943 2008 $11.690 $6.340 943 2009 $6.340 $8.993 5,951 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.809 1,419 2007 $10.809 $11.165 5,208 2008 $11.165 $6.890 5,044 2009 $6.890 $8.547 4,074 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.865 9,107 2007 $9.865 $11.173 16,959 2008 $11.173 $6.627 11,031 2009 $6.627 $9.096 13,667 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 204 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.849 0 2003 $10.849 $13.392 23,469 2004 $13.392 $14.549 42,275 2005 $14.549 $14.791 60,071 2006 $14.791 $16.961 48,538 2007 $16.961 $16.039 47,477 2008 $16.039 $10.215 27,395 2009 $10.215 $12.697 20,692 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.225 33,355 2005 $11.225 $11.202 174,991 2006 $11.202 $13.008 300,594 2007 $13.008 $13.254 326,039 2008 $13.254 $9.156 278,717 2009 $9.156 $12.194 223,569 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.520 1,205 2005 $10.520 $10.442 104,302 2006 $10.442 $11.373 133,393 2007 $11.373 $11.864 90,645 2008 $11.864 $7.628 76,526 2009 $7.628 $9.719 66,209 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2002 $10.000 $11.533 0 2003 $11.533 $15.545 0 2004 $15.545 $17.018 0 2005 $17.018 $17.515 0 2006 $17.515 $18.698 0 2007 $18.698 $20.425 0 2008 $20.425 $11.535 0 2009 $11.535 $16.264 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2002 $10.000 $11.223 0 2003 $11.223 $14.563 7,677 2004 $14.563 $17.699 14,403 2005 $17.699 $18.907 38,744 2006 $18.907 $21.723 31,855 2007 $21.723 $20.824 28,468 2008 $20.824 $13.698 19,973 2009 $13.698 $17.375 17,774 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 205 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - --------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.239 7,924 2005 $10.239 $10.298 84,783 2006 $10.298 $10.520 90,463 2007 $10.520 $11.014 63,048 2008 $11.014 $11.637 61,237 2009 $11.637 $11.783 49,183 - --------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $11.004 40,999 2007 $11.004 $12.086 61,577 2008 $12.086 $8.492 48,349 2009 $8.492 $10.285 52,250 - --------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2002 $10.000 $10.322 0 2003 $10.322 $12.687 13,840 2004 $12.687 $14.034 35,124 2005 $14.034 $15.238 96,633 2006 $15.238 $17.717 119,196 2007 $17.717 $18.004 108,493 2008 $18.004 $11.120 78,400 2009 $11.120 $13.765 61,652 - --------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2002 $10.000 $11.231 0 2003 $11.231 $16.875 3,012 2004 $16.875 $20.668 8,722 2005 $20.668 $25.867 18,080 2006 $25.867 $32.542 17,441 2007 $32.542 $41.155 14,969 2008 $41.155 $19.115 7,214 2009 $19.115 $32.401 7,357 - --------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2002 $10.000 $10.473 0 2003 $10.473 $13.599 7,819 2004 $13.599 $15.830 25,595 2005 $15.830 $17.129 72,793 2006 $17.129 $20.431 81,328 2007 $20.431 $23.164 69,029 2008 $23.164 $13.563 43,154 2009 $13.563 $18.255 29,389 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 206 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2002 $10.000 $10.719 0 2003 $10.719 $12.889 0 2004 $12.889 $14.524 0 2005 $14.524 $13.825 0 2006 $13.825 $15.313 0 2007 $15.313 $16.692 0 2008 $16.692 $17.410 952 2009 $17.410 $20.293 1,687 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.906 2,629 2005 $10.906 $11.456 8,148 2006 $11.456 $12.899 21,461 2007 $12.899 $13.519 15,659 2008 $13.519 $9.470 12,046 2009 $9.470 $11.716 10,791 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.357 494 2005 $10.357 $10.305 43,664 2006 $10.305 $11.066 133,264 2007 $11.066 $11.539 47,660 2008 $11.539 $9.345 37,334 2009 $9.345 $12.327 38,088 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.891 4,338 2005 $10.891 $11.043 52,475 2006 $11.043 $12.720 72,238 2007 $12.720 $12.920 83,465 2008 $12.920 $8.067 53,957 2009 $8.067 $9.420 48,170 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.139 0 2005 $11.139 $11.446 15,159 2006 $11.446 $12.129 25,731 2007 $12.129 $14.445 27,856 2008 $14.445 $8.761 14,051 2009 $8.761 $12.523 12,260 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.122 4,630 2005 $11.122 $11.821 79,110 2006 $11.821 $13.030 79,065 2007 $13.030 $12.870 64,917 2008 $12.870 $7.665 38,093 2009 $7.665 $9.531 33,322 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 207 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.058 0 2003 $10.058 $12.391 5,954 2004 $12.391 $14.534 15,708 2005 $14.534 $15.986 22,636 2006 $15.986 $16.124 30,216 2007 $16.124 $16.790 24,958 2008 $16.790 $8.374 17,093 2009 $8.374 $10.878 17,358 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2002 $10.000 $10.694 0 2003 $10.694 $13.095 7,233 2004 $13.095 $14.121 19,314 2005 $14.121 $14.378 17,516 2006 $14.378 $15.654 16,614 2007 $15.654 $15.909 14,185 2008 $15.909 $8.809 14,356 2009 $8.809 $10.520 13,002 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.105 1,761 2005 $10.105 $10.156 21,259 2006 $10.156 $10.467 56,610 2007 $10.467 $10.699 113,131 2008 $10.699 $6.402 91,674 2009 $6.402 $6.856 87,991 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.281 19,650 2004 $12.281 $12.859 139,232 2005 $12.859 $13.244 113,526 2006 $13.244 $14.006 109,153 2007 $14.006 $15.661 94,498 2008 $15.661 $8.357 65,749 2009 $8.357 $11.831 57,828 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2002 $10.000 $10.146 0 2003 $10.146 $14.235 3,483 2004 $14.235 $16.620 69,433 2005 $16.620 $18.618 13,925 2006 $18.618 $21.461 30,533 2007 $21.461 $22.357 27,024 2008 $22.357 $13.101 20,192 2009 $13.101 $17.930 16,803 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 208 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2002 $10.000 $10.659 0 2003 $10.659 $12.959 14,596 2004 $12.959 $13.838 24,084 2005 $13.838 $13.864 34,147 2006 $13.864 $14.873 29,168 2007 $14.873 $14.536 21,030 2008 $14.536 $3.059 19,862 2009 $3.059 $3.784 14,854 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2002 $10.000 $10.175 3,180 2003 $10.175 $12.635 20,820 2004 $12.635 $13.543 44,796 2005 $13.543 $14.065 136,243 2006 $14.065 $15.853 129,358 2007 $15.853 $16.214 110,198 2008 $16.214 $9.773 75,153 2009 $9.773 $12.285 57,942 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2002 $10.000 $10.351 0 2003 $10.351 $14.664 7,755 2004 $14.664 $17.164 16,016 2005 $17.164 $18.496 42,092 2006 $18.496 $20.828 43,420 2007 $20.828 $20.169 27,811 2008 $20.169 $12.279 20,348 2009 $12.279 $16.508 17,669 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2002 $10.000 $10.549 0 2003 $10.549 $12.138 36,470 2004 $12.138 $12.926 76,890 2005 $12.926 $13.010 181,853 2006 $13.010 $13.702 176,737 2007 $13.702 $14.741 153,933 2008 $14.741 $12.380 136,040 2009 $12.380 $14.396 130,323 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2002 $10.000 $10.386 0 2003 $10.386 $12.433 0 2004 $12.433 $13.323 373 2005 $13.323 $13.997 19,300 2006 $13.997 $15.515 50,392 2007 $15.515 $15.684 83,907 2008 $15.684 $10.270 76,177 2009 $10.270 $13.637 61,582 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 209 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------ PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $10.796 0 2003 $10.796 $13.506 13,936 2004 $13.506 $14.738 20,681 2005 $14.738 $15.231 29,879 2006 $15.231 $17.340 36,373 2007 $17.340 $15.999 25,411 2008 $15.999 $9.632 12,393 2009 $9.632 $12.280 10,381 - ------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2002 $10.000 $9.722 0 2003 $9.722 $11.303 1,277 2004 $11.303 $11.892 1,832 2005 $11.892 $13.221 1,747 2006 $13.221 $13.348 1,825 2007 $13.348 $13.029 1,961 2008 $13.029 $10.611 139 2009 $10.611 $13.130 0 - ------------------------------------------------------------------------------------------------------ PUTNAM VT HIGH YIELD FUND--CLASS IB 2002 $10.000 $10.738 0 2003 $10.738 $13.345 363,012 2004 $13.345 $14.488 53,015 2005 $14.488 $14.670 49,391 2006 $14.670 $15.925 43,697 2007 $15.925 $16.075 35,867 2008 $16.075 $11.672 24,451 2009 $11.672 $17.216 22,798 - ------------------------------------------------------------------------------------------------------ PUTNAM VT INCOME FUND--CLASS IB 2002 $10.000 $10.183 0 2003 $10.183 $10.443 163,346 2004 $10.443 $10.711 94,571 2005 $10.711 $10.768 149,423 2006 $10.768 $11.054 159,430 2007 $11.054 $11.422 132,584 2008 $11.422 $8.533 91,416 2009 $8.533 $12.291 87,147 - ------------------------------------------------------------------------------------------------------ PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2002 $10.000 $10.602 0 2003 $10.602 $13.383 228,069 2004 $13.383 $15.272 171,334 2005 $15.272 $16.829 53,857 2006 $16.829 $21.110 54,094 2007 $21.110 $22.464 55,076 2008 $22.464 $12.365 33,330 2009 $12.365 $15.135 30,099 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 210 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------- PUTNAM VT INVESTORS FUND--CLASS IB 2002 $10.000 $10.405 0 2003 $10.405 $12.992 5,187 2004 $12.992 $14.373 4,353 2005 $14.373 $15.359 4,774 2006 $15.359 $17.187 54,996 2007 $17.187 $16.005 35,019 2008 $16.005 $9.502 7,451 2009 $9.502 $12.209 5,658 - ---------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2002 $10.000 $9.983 4,006 2003 $9.983 $9.853 776,190 2004 $9.853 $9.741 571,779 2005 $9.741 $9.809 283,085 2006 $9.809 $10.057 213,854 2007 $10.057 $10.349 342,086 2008 $10.349 $10.424 324,791 2009 $10.424 $10.259 309,668 - ---------------------------------------------------------------------------------------------- PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2002 $10.000 $10.377 0 2003 $10.377 $13.497 3,291 2004 $13.497 $14.621 3,402 2005 $14.621 $15.797 233 2006 $15.797 $16.843 234 2007 $16.843 $17.489 168 2008 $17.489 $10.521 0 2009 $10.521 $13.653 0 - ---------------------------------------------------------------------------------------------- PUTNAM VT NEW VALUE FUND--CLASS IB 2002 $10.000 $11.202 0 2003 $11.202 $14.574 6,517 2004 $14.574 $16.522 18,620 2005 $16.522 $17.183 71,713 2006 $17.183 $19.579 74,753 2007 $19.579 $18.286 63,253 2008 $18.286 $9.921 39,738 2009 $9.921 $9.338 0 - ---------------------------------------------------------------------------------------------- PUTNAM VT RESEARCH FUND--CLASS IB 2002 $10.000 $10.640 0 2003 $10.640 $13.096 5,620 2004 $13.096 $13.834 6,279 2005 $13.834 $14.268 1,616 2006 $14.268 $15.599 1,566 2007 $15.599 $15.403 1,499 2008 $15.403 $9.296 534 2009 $9.296 $12.160 509 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 211 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2002 $10.000 $10.512 3,141 2003 $10.512 $12.083 17,937 2004 $12.083 $12.841 19,997 2005 $12.841 $13.117 34,620 2006 $13.117 $14.418 30,252 2007 $14.418 $14.294 26,289 2008 $14.294 $8.321 11,149 2009 $8.321 $10.266 10,936 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2002 $10.000 $11.467 0 2003 $11.467 $14.058 3,216 2004 $14.058 $16.789 3,706 2005 $16.789 $17.903 3,557 2006 $17.903 $22.337 3,442 2007 $22.337 $26.310 3,165 2008 $26.310 $17.960 43 2009 $17.960 $18.936 50 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VISTA FUND--CLASS IB 2002 $10.000 $10.370 0 2003 $10.370 $13.562 2,975 2004 $13.562 $15.798 2,606 2005 $15.798 $17.401 2,301 2006 $17.401 $18.022 3,112 2007 $18.022 $18.372 1,127 2008 $18.372 $9.825 273 2009 $9.825 $13.388 267 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT VOYAGER FUND--CLASS IB 2002 $10.000 $10.107 0 2003 $10.107 $12.398 27,311 2004 $12.398 $12.789 27,234 2005 $12.789 $13.276 34,981 2006 $13.276 $13.748 33,560 2007 $13.748 $14.246 25,420 2008 $14.246 $8.809 15,219 2009 $8.809 $14.180 14,031 - ------------------------------------------------------------------------------------------------------------------ VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.115 6,523 2005 $11.115 $12.129 6,398 2006 $12.129 $12.499 2,041 2007 $12.499 $14.435 1,940 2008 $14.435 $7.537 212 2009 $7.537 $11.574 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 212 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.328 35,103 2005 $11.328 $11.583 103,444 2006 $11.583 $13.202 96,241 2007 $13.202 $12.662 62,385 2008 $12.662 $7.983 38,316 2009 $7.983 $10.067 34,260 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2002 $10.000 $9.408 0 2003 $9.408 $13.874 0 2004 $13.874 $12.309 22,487 2005 $12.309 $13.013 17,612 2006 $13.013 $13.116 16,490 2007 $13.116 $15.024 9,192 2008 $15.024 $7.508 5,082 2009 $7.508 $12.214 4,116 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2002 $10.000 $10.650 0 2003 $10.650 $13.355 36,801 2004 $13.355 $14.968 81,112 2005 $14.968 $16.129 100,032 2006 $16.129 $18.372 88,795 2007 $18.372 $18.497 52,886 2008 $18.497 $12.314 39,008 2009 $12.314 $15.009 36,554 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.875 113,071 2005 $9.875 $9.934 251,605 2006 $9.934 $10.164 133,457 2007 $10.164 $10.426 137,828 2008 $10.426 $10.422 135,319 2009 $10.422 $10.243 0 - -------------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2002 $10.000 $11.057 0 2003 $11.057 $13.874 0 2004 $13.874 $14.999 6,120 2005 $14.999 $16.519 10,110 2006 $16.519 $17.977 14,849 2007 $17.977 $18.782 10,381 2008 $18.782 $15.683 7,102 2009 $15.683 $20.040 6,200 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 213 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.952 12,560 2005 $10.952 $11.550 29,686 2006 $11.550 $12.771 72,485 2007 $12.771 $12.962 66,971 2008 $12.962 $9.843 44,327 2009 $9.843 $11.841 27,589 - ------------------------------------------------------------------------------------------------ UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.749 18,791 2005 $10.749 $12.215 16,554 2006 $12.215 $12.490 10,996 2007 $12.490 $14.952 10,166 2008 $14.952 $7.461 2,938 2009 $7.461 $12.131 3,621 - ------------------------------------------------------------------------------------------------ UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.723 10,867 2005 $10.723 $12.162 12,616 2006 $12.162 $12.400 13,657 2007 $12.400 $14.815 6,253 2008 $14.815 $7.370 7,839 2009 $7.370 $11.953 4,708 - ------------------------------------------------------------------------------------------------ UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $11.075 24,900 2005 $11.075 $12.180 47,188 2006 $12.180 $14.536 101,345 2007 $14.536 $15.670 83,710 2008 $15.670 $10.936 58,984 2009 $10.936 $13.915 55,696 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.820 22,302 2007 $9.820 $11.823 30,094 2008 $11.823 $6.175 19,376 2009 $6.175 $9.544 17,313 - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.575 504 2004 $13.575 $15.858 1,901 2005 $15.858 $17.582 1,861 2006 $17.582 $19.312 5,220 2007 $19.312 $19.526 4,232 2008 $19.526 $11.422 2,737 2009 $11.422 $16.450 5,060 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* BASIC CONTRACT MORTALITY & EXPENSE = 1.6 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.60% and an administrative expense charge of 0.19%. 214 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------- UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.291 9,030 2005 $11.291 $12.455 11,341 2006 $12.455 $14.764 5,289 2007 $14.764 $15.636 5,082 2008 $15.636 $9.015 3,220 2009 $9.015 $12.325 2,743 - ---------------------------------------------------------------------------------------------- UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.284 3,401 2005 $11.284 $12.429 11,785 2006 $12.429 $14.725 12,220 2007 $14.725 $15.580 18,366 2008 $15.580 $8.963 13,037 2009 $8.963 $12.250 10,552 - ---------------------------------------------------------------------------------------------- UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2002 $10.000 $10.698 0 2003 $10.698 $14.511 6,427 2004 $14.511 $19.392 23,013 2005 $19.392 $22.236 24,523 2006 $22.236 $30.066 29,901 2007 $30.066 $24.425 16,406 2008 $24.425 $14.859 12,296 2009 $14.859 $18.750 12,283 - ---------------------------------------------------------------------------------------------- PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $12.596 35,900 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 215 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP CONTRAFUND PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.193 0 2007 $10.193 $11.633 0 2008 $11.633 $6.487 0 2009 $6.487 $8.551 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2010 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.383 0 2007 $10.383 $10.953 0 2008 $10.953 $7.976 0 2009 $7.976 $9.620 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2020 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.412 0 2007 $10.412 $11.141 0 2008 $11.141 $7.285 0 2009 $7.285 $9.113 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM 2030 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.421 0 2007 $10.421 $11.263 0 2008 $11.263 $6.776 0 2009 $6.776 $8.650 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP FREEDOM INCOME PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.274 0 2007 $10.274 $10.588 0 2008 $10.588 $9.200 0 2009 $9.200 $10.263 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP GROWTH STOCK PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.673 0 2007 $9.673 $11.511 0 2008 $11.511 $6.186 0 2009 $6.186 $8.694 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP INDEX 500 PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $10.742 0 2007 $10.742 $10.994 0 2008 $10.994 $6.722 0 2009 $6.722 $8.262 0 - ---------------------------------------------------------------------------------------------------------- FIDELITY VIP MID CAP PORTFOLIO--SERVICE CLASS 2 2006 $10.000 $9.804 0 2007 $9.804 $11.002 0 2008 $11.002 $6.465 0 2009 $6.465 $8.793 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 216 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN GROWTH AND INCOME SECURITIES FUND--CLASS 2 2003 $10.669 $13.259 576 2004 $13.259 $14.271 539 2005 $14.271 $14.377 540 2006 $14.377 $16.335 497 2007 $16.335 $15.304 510 2008 $15.304 $9.658 443 2009 $9.658 $11.894 470 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN INCOME SECURITIES FUND--CLASS 2 2004 $10.000 $11.156 0 2005 $11.156 $11.031 0 2006 $11.031 $12.693 0 2007 $12.693 $12.814 0 2008 $12.814 $8.771 0 2009 $8.771 $11.574 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN LARGE CAP GROWTH SECURITIES FUND--CLASS 2 2004 $10.000 $10.496 0 2005 $10.496 $10.323 0 2006 $10.323 $11.140 0 2007 $11.140 $11.514 0 2008 $11.514 $7.336 0 2009 $7.336 $9.261 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL-MID CAP GROWTH SECURITIES FUND--CLASS 2 2003 $11.788 $15.390 0 2004 $15.390 $16.694 0 2005 $16.694 $17.024 0 2006 $17.024 $18.007 0 2007 $18.007 $19.490 0 2008 $19.490 $10.905 0 2009 $10.905 $15.236 0 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN SMALL CAP VALUE SECURITIES FUND--CLASS 2 2003 $11.008 $14.417 722 2004 $14.417 $17.361 641 2005 $17.361 $18.377 630 2006 $18.377 $20.921 622 2007 $20.921 $19.871 640 2008 $19.871 $12.951 547 2009 $12.951 $16.277 553 - ---------------------------------------------------------------------------------------------------------------- FTVIP FRANKLIN U.S. GOVERNMENT FUND--CLASS 2 2004 $10.000 $10.176 1,084 2005 $10.176 $10.141 1,084 2006 $10.141 $10.265 1,084 2007 $10.265 $10.648 1,084 2008 $10.648 $11.148 1,084 2009 $11.148 $11.184 1,084 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 217 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL GLOBAL DISCOVERY SECURITIES FUND--CLASS 2 FORMERLY, FTVIP MUTUAL DISCOVERY SECURITIES FUND--CLASS 2 2006 $10.000 $10.936 0 2007 $10.936 $11.901 0 2008 $11.901 $8.285 0 2009 $8.285 $9.942 0 - -------------------------------------------------------------------------------------------------------------------- FTVIP MUTUAL SHARES SECURITIES FUND--CLASS 2 2003 $10.569 $12.560 1,429 2004 $12.560 $13.766 1,378 2005 $13.766 $14.811 1,332 2006 $14.811 $17.063 1,250 2007 $17.063 $17.179 1,203 2008 $17.179 $10.513 1,070 2009 $10.513 $12.895 1,132 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON DEVELOPING MARKETS SECURITIES FUND--CLASS 2 2003 $11.642 $16.706 0 2004 $16.706 $20.275 0 2005 $20.275 $25.143 0 2006 $25.143 $31.342 0 2007 $31.342 $39.272 0 2008 $39.272 $18.073 0 2009 $18.073 $30.353 0 - -------------------------------------------------------------------------------------------------------------------- FTVIP TEMPLETON FOREIGN SECURITIES FUND--CLASS 2 2003 $10.348 $13.463 0 2004 $13.463 $15.528 608 2005 $15.528 $16.649 608 2006 $16.649 $19.677 608 2007 $19.677 $22.104 608 2008 $22.104 $12.824 608 2009 $12.824 $17.101 608 - -------------------------------------------------------------------------------------------------------------------- TEMPLETON GLOBAL BOND SECURITIES FUND FORMERLY, FTVIP TEMPLETON GLOBAL INCOME SECURITIES FUND--CLASS 2 2003 $10.550 $12.760 0 2004 $12.760 $14.247 0 2005 $14.247 $13.438 0 2006 $13.438 $14.747 0 2007 $14.747 $15.927 0 2008 $15.927 $16.461 0 2009 $16.461 $19.011 0 - -------------------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--ALL VALUE PORTFOLIO 2004 $10.000 $10.881 0 2005 $10.881 $11.326 0 2006 $11.326 $12.636 0 2007 $12.636 $13.120 0 2008 $13.120 $9.107 0 2009 $9.107 $11.163 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 218 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--BOND-DEBENTURE PORTFOLIO 2004 $10.000 $10.334 0 2005 $10.334 $10.188 0 2006 $10.188 $10.840 0 2007 $10.840 $11.199 0 2008 $11.199 $8.987 0 2009 $8.987 $11.745 0 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH AND INCOME PORTFOLIO 2004 $10.000 $10.866 0 2005 $10.866 $10.918 0 2006 $10.918 $12.460 0 2007 $12.460 $12.540 0 2008 $12.540 $7.758 0 2009 $7.758 $8.975 0 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--GROWTH OPPORTUNITIES PORTFOLIO 2004 $10.000 $11.113 0 2005 $11.113 $11.315 0 2006 $11.315 $11.881 0 2007 $11.881 $14.020 0 2008 $14.020 $8.425 0 2009 $8.425 $11.932 0 - ----------------------------------------------------------------------------------------------------------- LORD ABBETT SERIES FUND--MID-CAP VALUE PORTFOLIO 2004 $10.000 $11.096 0 2005 $11.096 $11.686 0 2006 $11.686 $12.764 0 2007 $12.764 $12.491 0 2008 $12.491 $7.371 0 2009 $7.371 $9.081 0 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER MIDCAP FUND/VA--SERVICE SHARES 2003 $10.308 $12.267 0 2004 $12.267 $14.257 0 2005 $14.257 $15.538 0 2006 $15.538 $15.529 0 2007 $15.529 $16.021 0 2008 $16.021 $7.917 0 2009 $7.917 $10.190 0 - ----------------------------------------------------------------------------------------------------------- OPPENHEIMER BALANCED FUND/VA--SERVICE SHARES 2003 $11.073 $12.964 0 2004 $12.964 $13.851 0 2005 $13.851 $13.975 0 2006 $13.975 $15.077 0 2007 $15.077 $15.180 0 2008 $15.180 $8.329 0 2009 $8.329 $9.855 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 219 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CORE BOND FUND/VA--SERVICE SHARES 2004 $10.000 $10.082 0 2005 $10.082 $10.040 0 2006 $10.040 $10.253 0 2007 $10.253 $10.384 0 2008 $10.384 $6.156 0 2009 $6.156 $6.532 0 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER CAPITAL APPRECIATION FUND/VA--SERVICE SHARES 2003 $10.000 $12.206 1,456 2004 $12.206 $12.663 1,465 2005 $12.663 $12.923 1,481 2006 $12.923 $13.542 1,540 2007 $13.542 $15.002 1,366 2008 $15.002 $7.932 1,376 2009 $7.932 $11.127 1,339 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER GLOBAL SECURITIES FUND/VA--SERVICE SHARES 2003 $10.051 $14.093 0 2004 $14.093 $16.303 0 2005 $16.303 $18.097 0 2006 $18.097 $20.669 0 2007 $20.669 $21.333 0 2008 $21.333 $12.386 0 2009 $12.386 $16.796 0 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER HIGH INCOME FUND/VA--SERVICE SHARES 2003 $10.695 $12.829 0 2004 $12.829 $13.574 0 2005 $13.574 $13.475 0 2006 $13.475 $14.324 0 2007 $14.324 $13.871 0 2008 $13.871 $2.892 0 2009 $2.892 $3.544 0 - ------------------------------------------------------------------------------------------------------------ OPPENHEIMER MAIN STREET FUND/VA--SERVICE SHARES 2003 $10.431 $12.508 1,423 2004 $12.508 $13.285 2,527 2005 $13.285 $13.671 2,532 2006 $13.671 $15.268 2,503 2007 $15.268 $15.472 2,445 2008 $15.472 $9.240 2,345 2009 $9.240 $11.508 2,391 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 220 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA--SERVICE SHARES 2003 $10.680 $14.518 0 2004 $14.518 $16.837 0 2005 $16.837 $17.977 0 2006 $17.977 $20.060 0 2007 $20.060 $19.245 0 2008 $19.245 $11.610 0 2009 $11.610 $15.464 0 - ------------------------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA--SERVICE SHARES 2003 $11.212 $12.016 57 2004 $12.016 $12.679 56 2005 $12.679 $12.645 56 2006 $12.645 $13.196 56 2007 $13.196 $14.066 52 2008 $14.066 $11.705 36 2009 $11.705 $13.486 35 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL ASSET ALLOCATION FUND--CLASS IB 2003 $10.717 $12.309 0 2004 $12.309 $13.069 0 2005 $13.069 $13.605 0 2006 $13.605 $14.943 0 2007 $14.943 $14.966 0 2008 $14.966 $9.710 0 2009 $9.710 $12.776 0 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND--CLASS IB 2003 $10.958 $13.370 1,360 2004 $13.370 $14.457 2,340 2005 $14.457 $14.804 2,355 2006 $14.804 $16.700 2,315 2007 $16.700 $15.267 2,370 2008 $15.267 $9.107 2,273 2009 $9.107 $11.504 2,318 - ------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND--CLASS IB FORMERLY, PUTNAM VT HEALTH SCIENCES FUND--CLASS IB 2003 $10.201 $11.190 0 2004 $11.190 $11.665 0 2005 $11.665 $12.850 0 2006 $12.850 $12.855 0 2007 $12.855 $12.432 0 2008 $12.432 $10.032 0 2009 $10.032 $12.300 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 221 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------- PUTNAM VT HIGH YIELD FUND--CLASS IB 2003 $11.828 $13.212 0 2004 $13.212 $14.212 0 2005 $14.212 $14.259 0 2006 $14.259 $15.337 0 2007 $15.337 $15.339 0 2008 $15.339 $11.035 0 2009 $11.035 $16.128 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT INCOME FUND--CLASS IB 2003 $10.324 $10.338 0 2004 $10.338 $10.506 0 2005 $10.506 $10.466 0 2006 $10.466 $10.645 0 2007 $10.645 $10.899 0 2008 $10.899 $8.068 0 2009 $8.068 $11.514 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND--CLASS IB 2003 $10.542 $13.249 0 2004 $13.249 $14.981 0 2005 $14.981 $16.357 0 2006 $16.357 $20.331 0 2007 $20.331 $21.436 0 2008 $21.436 $11.691 0 2009 $11.691 $14.179 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT INVESTORS FUND--CLASS IB 2003 $10.658 $12.862 0 2004 $12.862 $14.098 0 2005 $14.098 $14.929 0 2006 $14.929 $16.552 0 2007 $16.552 $15.273 0 2008 $15.273 $8.984 0 2009 $8.984 $11.437 0 - ------------------------------------------------------------------------------------------------- PUTNAM VT MONEY MARKET FUND--CLASS IB 2003 $9.906 $9.755 0 2004 $9.755 $9.555 0 2005 $9.555 $9.534 0 2006 $9.534 $9.686 0 2007 $9.686 $9.875 0 2008 $9.875 $9.856 0 2009 $9.856 $9.611 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 222 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT NEW OPPORTUNITIES FUND--CLASS IB 2003 $10.944 $13.362 1,492 2004 $13.362 $14.343 1,502 2005 $14.343 $15.354 1,449 2006 $15.354 $16.221 1,490 2007 $16.221 $16.688 1,419 2008 $16.688 $9.947 1,314 2009 $9.947 $12.790 1,333 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT NEW VALUE FUND--CLASS IB 2003 $11.285 $14.429 0 2004 $14.429 $16.207 0 2005 $16.207 $16.701 0 2006 $16.701 $18.856 0 2007 $18.856 $17.449 0 2008 $17.449 $9.379 0 2009 $9.379 $8.819 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT RESEARCH FUND--CLASS IB 2003 $10.807 $12.965 0 2004 $12.965 $13.570 0 2005 $13.570 $13.868 0 2006 $13.868 $15.023 0 2007 $15.023 $14.698 0 2008 $14.698 $8.789 0 2009 $8.789 $11.391 0 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT THE GEORGE PUTNAM FUND OF BOSTON--CLASS IB 2003 $10.649 $11.963 0 2004 $11.963 $12.596 911 2005 $12.596 $12.749 960 2006 $12.749 $13.886 982 2007 $13.886 $13.639 981 2008 $13.639 $7.867 891 2009 $7.867 $9.617 957 - ------------------------------------------------------------------------------------------------------------------ PUTNAM VT GLOBAL UTILITIES FUND--CLASS IB FORMERLY, PUTNAM VT UTILITIES GROWTH AND INCOME FUND--CLASS IB 2003 $11.450 $13.937 0 2004 $13.937 $16.469 44 2005 $16.469 $17.401 41 2006 $17.401 $21.512 35 2007 $21.512 $25.106 28 2008 $25.106 $16.981 25 2009 $16.981 $17.740 27 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 223 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - -------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND--CLASS IB 2003 $10.764 $13.427 736 2004 $13.427 $15.497 728 2005 $15.497 $16.913 691 2006 $16.913 $17.357 744 2007 $17.357 $17.531 715 2008 $17.531 $9.289 724 2009 $9.289 $12.541 744 - -------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND--CLASS IB 2003 $10.545 $12.274 1,630 2004 $12.274 $12.545 1,697 2005 $12.545 $12.904 1,709 2006 $12.904 $13.240 1,830 2007 $13.240 $13.594 1,752 2008 $13.594 $8.329 1,585 2009 $8.329 $13.284 1,301 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MID CAP GROWTH PORTFOLIO, CLASS II 2004 $10.000 $11.047 0 2005 $11.047 $11.945 0 2006 $11.945 $12.197 0 2007 $12.197 $13.955 0 2008 $13.955 $7.219 0 2009 $7.219 $10.986 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT COMSTOCK PORTFOLIO, CLASS II 2004 $10.000 $11.258 0 2005 $11.258 $11.407 0 2006 $11.407 $12.882 0 2007 $12.882 $12.242 0 2008 $12.242 $7.647 0 2009 $7.647 $9.555 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT CAPITAL GROWTH PORTFOLIO, CLASS II 2003 $9.898 $11.621 0 2004 $11.621 $12.075 0 2005 $12.075 $12.648 0 2006 $12.648 $12.632 0 2007 $12.632 $14.336 0 2008 $14.336 $7.098 0 2009 $7.098 $11.441 0 - -------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO, CLASS II 2003 $10.754 $13.221 1,365 2004 $13.221 $14.683 1,280 2005 $14.683 $15.677 1,227 2006 $15.677 $17.694 1,195 2007 $17.694 $17.650 1,156 2008 $17.650 $11.643 961 2009 $11.643 $14.061 1,028 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 224 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - --------------------------------------------------------------------------------------------------- VAN KAMPEN LIT MONEY MARKET PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $9.784 0 2005 $9.784 $9.753 0 2006 $9.753 $9.887 0 2007 $9.887 $10.049 0 2008 $10.049 $9.953 0 2009 $9.953 $9.696 0 - --------------------------------------------------------------------------------------------------- UIF EMERGING MARKETS DEBT PORTFOLIO, CLASS II 2003 $12.251 $13.735 0 2004 $13.735 $14.713 0 2005 $14.713 $16.056 0 2006 $16.056 $17.313 0 2007 $17.313 $17.922 0 2008 $17.922 $14.828 0 2009 $14.828 $18.774 0 - --------------------------------------------------------------------------------------------------- UIF EQUITY AND INCOME PORTFOLIO, CLASS II 2004 $10.000 $10.885 0 2005 $10.885 $11.374 0 2006 $11.374 $12.461 0 2007 $12.461 $12.532 0 2008 $12.532 $9.429 0 2009 $9.429 $11.238 0 - --------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS I 2004 $10.000 $10.683 1,685 2005 $10.683 $12.029 1,541 2006 $12.029 $12.187 1,643 2007 $12.187 $14.455 1,371 2008 $14.455 $7.147 1,419 2009 $7.147 $11.514 1,257 - --------------------------------------------------------------------------------------------------- UIF CAPITAL GROWTH PORTFOLIO, CLASS II 2004 $10.000 $10.657 0 2005 $10.657 $11.977 0 2006 $11.977 $12.100 0 2007 $12.100 $14.323 0 2008 $14.323 $7.059 0 2009 $7.059 $11.345 0 - --------------------------------------------------------------------------------------------------- UIF GLOBAL FRANCHISE PORTFOLIO, CLASS II 2003 $10.000 $10.000 0 2004 $10.000 $10.974 0 2005 $10.974 $11.958 0 2006 $11.958 $14.141 0 2007 $14.141 $15.104 0 2008 $15.104 $10.444 0 2009 $10.444 $13.167 0 ALLSTATE ADVISOR VARIABLE ANNUITY: ALLSTATE ADVISOR PREFERRED CONTRACTS WITH NO WITHDRAWAL CHARGE OPTION--PROSPECTUS ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT* WITH THE MAV DEATH BENEFIT OPTION, THE ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION BOTH ADDED ON OR AFTER MAY 1, 2003, AND THE EARNINGS PROTECTION DEATH BENEFIT OPTION (AGE 71-79) MORTALITY & EXPENSE = 2.5 * The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 2.50% and an administrative expense charge of 0.19%. 225 PROSPECTUS
Number of Accumulation Accumulation Units For the Year Unit Value Unit Value Outstanding Ending at Beginning at End at End Sub-Accounts December 31 of Period of Period of Period - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP GROWTH PORTFOLIO, CLASS II 2006 $10.000 $9.759 0 2007 $9.759 $11.642 0 2008 $11.642 $6.025 0 2009 $6.025 $9.226 0 - ------------------------------------------------------------------------------------------------ UIF SMALL COMPANY GROWTH PORTFOLIO, CLASS II 2003 $10.000 $13.492 0 2004 $13.492 $15.617 0 2005 $15.617 $17.156 0 2006 $17.156 $18.672 0 2007 $18.672 $18.705 0 2008 $18.705 $10.841 0 2009 $10.841 $15.470 0 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS I 2004 $10.000 $11.222 1,693 2005 $11.222 $12.265 1,587 2006 $12.265 $14.407 1,479 2007 $14.407 $15.117 1,356 2008 $15.117 $8.636 1,302 2009 $8.636 $11.698 1,256 - ------------------------------------------------------------------------------------------------ UIF U.S. MID CAP VALUE PORTFOLIO, CLASS II 2004 $10.000 $11.215 0 2005 $11.215 $12.240 0 2006 $12.240 $14.369 0 2007 $14.369 $15.063 0 2008 $15.063 $8.586 0 2009 $8.586 $11.626 0 - ------------------------------------------------------------------------------------------------ UIF U.S. REAL ESTATE PORTFOLIO, CLASS II 2003 $11.344 $14.366 0 2004 $14.366 $19.022 510 2005 $19.022 $21.613 510 2006 $21.613 $28.957 510 2007 $28.957 $23.307 510 2008 $23.307 $14.048 510 2009 $14.048 $17.565 510 - ------------------------------------------------------------------------------------------------ PUTNAM VT EQUITY INCOME FUND--CLASS IB 2009 $10.000 $11.800 0 PA195-4 [LOGO] THE ALLSTATE VARIABLE ANNUITIES (ALLSTATE VARIABLE ANNUITY, ALLSTATE VARIABLE ANNUITY - L SHARE) ALLSTATE LIFE INSURANCE COMPANY STREET ADDRESS: 5801 SW 6TH AVE. TOPEKA, KS 66606-0001 MAILING ADDRESS: P.O. BOX 758566, TOPEKA, KS 66675-8566 TELEPHONE NUMBER: 1-800-457-7617 FAX NUMBER: 1-785-228-4584 PROSPECTUS DATED MAY 1, 2010 - -------------------------------------------------------------------------------- Allstate Life Insurance Company ("ALLSTATE LIFE") has offered the following individual and group flexible premium deferred variable annuity contracts (each, a "CONTRACT"): .. Allstate Variable Annuity .. Allstate Variable Annuity - L Share This prospectus contains information about each Contract that you should know before investing. Please keep it for future reference. These Contracts are no longer offered for new sales. Each Contract currently offers several investment alternatives ("INVESTMENT ALTERNATIVES"). The investment alternatives include up to 3 fixed account options ("FIXED ACCOUNT OPTIONS"), depending on the Contract, and include 62* variable sub-accounts ("VARIABLE SUB-ACCOUNTS") of the Allstate Financial Advisors Separate Account I ("VARIABLE ACCOUNT"). Each Variable Sub-Account invests exclusively in shares of the following funds ("FUNDS"): MORGAN STANLEY VARIABLE INVESTMENT FIDELITY(R) VARIABLE INSURANCE SERIES (CLASS Y) PRODUCTS (SERVICE CLASS 2) THE UNIVERSAL INSTITUTIONAL FUNDS, FRANKLIN TEMPLETON VARIABLE INSURANCE INC. (CLASS II SHARES) PRODUCTS TRUST (CLASS 2) VAN KAMPEN LIFE INVESTMENT TRUST GOLDMAN SACHS VARIABLE INSURANCE TRUST (CLASS II) PIMCO VARIABLE INSURANCE TRUST AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS) PUTNAM VARIABLE TRUST (CLASS IB) (SERIES II) ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC. (CLASS B) * Certain Variable Sub-Accounts may not be available depending on the date you purchased your Contract. Please see page 44 for information about Variable Sub-Account or Portfolio liquidations, mergers, closures and name changes. Each Fund has multiple investment Portfolios ("PORTFOLIOS"). Not all of the Funds and/or Portfolios, however, may be available with your Contract. You should check with your Morgan Stanley Financial Advisor for further information on the availability of the Funds and/or Portfolios. Your annuity application will list all available Portfolios. WE (Allstate Life) have filed a Statement of Additional Information, dated May 1, 2010, with the Securities and Exchange Commission ("SEC"). It contains more information about each Contract and is incorporated herein by reference, which means that it is legally a part of this prospectus. Its table of contents appears on page 91 of this prospectus. For a free copy, please write or call us at the address or telephone number above, or go to the SEC's Web site (http://www.sec.gov). You can find other information and documents about us, including documents that are legally part of this prospectus, at the SEC's Web site. 1 PROSPECTUS
- -------------------------------------------------------------------------------------------------------- IMPORTANT THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THE SECURITIES NOTICES DESCRIBED IN THIS PROSPECTUS, NOR HAS IT PASSED ON THE ACCURACY OR THE ADEQUACY OF THIS PROSPECTUS. ANYONE WHO TELLS YOU OTHERWISE IS COMMITTING A FEDERAL CRIME. INVESTMENT IN THE CONTRACTS INVOLVES INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL.TABLE OF CONTENTS - --------------------------------------------------------------------------------
Page ----------------------------------------- OVERVIEW ----------------------------------------- Important Terms 3 ----------------------------------------- Overview of Contracts 5 ----------------------------------------- The Contracts at a Glance 6 ----------------------------------------- How the Contracts Work 11 ----------------------------------------- Expense Table 12 ----------------------------------------- Financial Information 16 ----------------------------------------- CONTRACT FEATURES ----------------------------------------- The Contracts 16 ----------------------------------------- Purchases 19 ----------------------------------------- Contract Value 20 ----------------------------------------- Investment Alternatives 44 ----------------------------------------- The Variable Sub-Accounts 44 ----------------------------------------- The Fixed Account Options 50 ----------------------------------------- Transfers 53 ----------------------------------------- Expenses 56 ----------------------------------------- Access to Your Money 62 ----------------------------------------- Income Payments 63 ----------------------------------------- Death Benefits 71 ----------------------------------------- 2 PROSPECTUS
Page ------------------------------------------------------------ OTHER INFORMATION ------------------------------------------------------------ More Information 79 ------------------------------------------------------------ Taxes 82 ------------------------------------------------------------ Annual Reports and Other Documents 90 ------------------------------------------------------------ STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS 91 ------------------------------------------------------------ APPENDIX A - CONTRACT COMPARISON CHART 92 ------------------------------------------------------------ APPENDIX B - MARKET VALUE ADJUSTMENT 93 ------------------------------------------------------------ APPENDIX C - EXAMPLE OF CALCULATION OF INCOME PROTECTION BENEFIT 95 ------------------------------------------------------------ APPENDIX D - WITHDRAWAL ADJUSTMENT EXAMPLE-INCOME BENEFITS 96 ------------------------------------------------------------ APPENDIX E - WITHDRAWAL ADJUSTMENT EXAMPLE-DEATH BENEFITS 97 ------------------------------------------------------------ APPENDIX F - CALCULATION OF EARNINGS PROTECTION DEATH BENEFIT 98 ------------------------------------------------------------ APPENDIX G - WITHDRAWAL ADJUSTMENT EXAMPLE - TRUERETURN ACCUMULATION BENEFIT 101 ------------------------------------------------------------ APPENDIX H - SUREINCOME WITHDRAWAL BENEFIT OPTION CALCULATION EXAMPLES 102 ------------------------------------------------------------ APPENDIX I - SUREINCOME PLUS WITHDRAWAL BENEFIT OPTION CALCULATION EXAMPLES 103 ------------------------------------------------------------ APPENDIX J - SUREINCOME FOR LIFE WITHDRAWAL BENEFIT OPTION CALCULATION EXAMPLES 105 ------------------------------------------------------------ APPENDIX K - ACCUMULATION UNIT VALUES 109 ------------------------------------------------------------ IMPORTANT TERMS - -------------------------------------------------------------------------------- This prospectus uses a number of important terms that you may not be familiar with. The index below identifies the page that describes each term. The first use of each term in this prospectus appears in highlights.
Page ------------------------------------------------------------------ AB Factor 21 ------------------------------------------------------------------ Accumulation Benefit 21 ------------------------------------------------------------------ Accumulation Phase 11 ------------------------------------------------------------------ Accumulation Unit 20 ------------------------------------------------------------------ Accumulation Unit Value 20 ------------------------------------------------------------------ Allstate Life ("We") 79 ------------------------------------------------------------------ Annuitant 17 ------------------------------------------------------------------ Automatic Additions Program 19 ------------------------------------------------------------------ Automatic Portfolio Rebalancing Program 56 ------------------------------------------------------------------ Beneficiary 18 ------------------------------------------------------------------ Benefit Base (for the TrueReturn Accumulation Benefit Option) 22 ------------------------------------------------------------------ Benefit Base (for the SureIncome Withdrawal Benefit Option) 30 ------------------------------------------------------------------ Benefit Base (for the SureIncome Plus Withdrawal Benefit Option) 33 ------------------------------------------------------------------ Benefit Base (for the SureIncome For Life Withdrawal Benefit Option) 37 ------------------------------------------------------------------ Benefit Payment (for the SureIncome Withdrawal Benefit Option) 30 ------------------------------------------------------------------ Benefit Payment (for the SureIncome Plus Withdrawal Benefit Option) 33 ------------------------------------------------------------------ Benefit Payment (for the SureIncome For Life Withdrawal Benefit Option) 37 ------------------------------------------------------------------ Benefit Payment Remaining (for the SureIncome Withdrawal Benefit Option) 30 ------------------------------------------------------------------ Benefit Payment Remaining (for the SureIncome Plus Withdrawal Benefit Option) 33 ------------------------------------------------------------------ Benefit Payment Remaining (for the SureIncome For Life Withdrawal Benefit Option) 37 ------------------------------------------------------------------ Benefit Year (for the SureIncome Withdrawal Benefit Option) 30 ------------------------------------------------------------------ Benefit Year (for the SureIncome Plus Withdrawal Benefit Option) 33 ------------------------------------------------------------------ Benefit Year (for the SureIncome For Life Withdrawal Benefit Option) 37 ------------------------------------------------------------------ Co-Annuitant 17 ------------------------------------------------------------------ *Contract 16 ------------------------------------------------------------------ Contract Anniversary 7 ------------------------------------------------------------------ Contract Owner ("You") 16 ------------------------------------------------------------------ Contract Value 7 ------------------------------------------------------------------ Contract Year 8 ------------------------------------------------------------------ Dollar Cost Averaging Program 55 ------------------------------------------------------------------ Due Proof of Death 71 ------------------------------------------------------------------ Earnings Protection Death Benefit Option 73 ------------------------------------------------------------------ Enhanced Beneficiary Protection (Annual Increase) Option 73 ------------------------------------------------------------------ 3 PROSPECTUS
Page ----------------------------------------------------------------- Excess of Earnings Withdrawal 74 ----------------------------------------------------------------- Fixed Account Options 50 ----------------------------------------------------------------- Free Withdrawal Amount 60 ----------------------------------------------------------------- Funds 1 ----------------------------------------------------------------- Guarantee Option 7 ----------------------------------------------------------------- Guarantee Period Account 51 ----------------------------------------------------------------- Income Base 7 ----------------------------------------------------------------- Income Plan 63 ----------------------------------------------------------------- Income Protection Benefit Option 66 ----------------------------------------------------------------- In-Force Earnings 74 ----------------------------------------------------------------- In-Force Premium 74 ----------------------------------------------------------------- Investment Alternatives 44 ----------------------------------------------------------------- IRA Contract 7 ----------------------------------------------------------------- Issue Date 11 ----------------------------------------------------------------- Market Value Adjustment 52 ----------------------------------------------------------------- Maximum Anniversary Value (MAV) Death Benefit Option 72 ----------------------------------------------------------------- Payout Phase 11 ----------------------------------------------------------------- Payout Start Date 63 ----------------------------------------------------------------- Payout Withdrawal 65 ----------------------------------------------------------------- Portfolios 79 ----------------------------------------------------------------- Qualified Contract 16 ----------------------------------------------------------------- Retirement Income Guarantee Options 58 ----------------------------------------------------------------- Return of Premium ("ROP") Death Benefit 72 ----------------------------------------------------------------- Rider Anniversary 20 ----------------------------------------------------------------- Rider Application Date 16 ----------------------------------------------------------------- Rider Date (for the TrueReturn Accumulation Benefit Option) 21 ----------------------------------------------------------------- Rider Date (for the SureIncome Withdrawal Benefit Option) 30 ----------------------------------------------------------------- Rider Date (for the SureIncome Plus Withdrawal Benefit Option) 33 ----------------------------------------------------------------- Rider Date (for the SureIncome For Life Withdrawal Benefit Option) 37 ----------------------------------------------------------------- Rider Fee (for the TrueReturn Accumulation Benefit Option) 7 ----------------------------------------------------------------- Rider Fee (for the SureIncome Withdrawal Benefit Option) 7 ----------------------------------------------------------------- Rider Fee (for the SureIncome Plus Withdrawal Benefit Option) 7 ----------------------------------------------------------------- Rider Fee (for the SureIncome For Life Withdrawal Benefit Option) 7 ----------------------------------------------------------------- Rider Fee Percentage 7 ----------------------------------------------------------------- Rider Maturity Date 20 ----------------------------------------------------------------- Rider Period 20 ----------------------------------------------------------------- Rider Trade-In Option (for the TrueReturn Accumulation Benefit Option) 22 -----------------------------------------------------------------
Page ---------------------------------------------------------- Rider Trade-In Option (for the SureIncome Withdrawal Benefit Option) 29 ---------------------------------------------------------- Right to Cancel 19 ---------------------------------------------------------- SEC 1 ---------------------------------------------------------- Settlement Value 72 ---------------------------------------------------------- Spousal Protection Benefit (Co-Annuitant) Option 17 ---------------------------------------------------------- Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts 17 ---------------------------------------------------------- Standard Fixed Account Option 51 ---------------------------------------------------------- SureIncome Covered Life 37 ---------------------------------------------------------- SureIncome Option Fee 58 ---------------------------------------------------------- SureIncome Plus Option 33 ---------------------------------------------------------- SureIncome Plus Option Fee 58 ---------------------------------------------------------- SureIncome Plus Withdrawal Benefit Option 37 ---------------------------------------------------------- SureIncome For Life Option 37 ---------------------------------------------------------- SureIncome For Life Option Fee 58 ---------------------------------------------------------- SureIncome For Life Withdrawal Benefit Option 37 ---------------------------------------------------------- SureIncome ROP Death Benefit 38 ---------------------------------------------------------- SureIncome Withdrawal Benefit Option 30 ---------------------------------------------------------- Systematic Withdrawal Program 62 ---------------------------------------------------------- Tax Qualified Contract 85 ---------------------------------------------------------- Transfer Period Accounts 23 ---------------------------------------------------------- Trial Examination Period 6 ---------------------------------------------------------- * In certain states a Contract was available only as a group Contract. If you purchased a group Contract, we issued you a certificate that represents your ownership and that summarizes the provisions of the group Contract. References to "Contract" in this prospectus include certificates, unless the context requires otherwise. References to "Contract" also include both Contracts listed on the cover page of this prospectus, unless otherwise noted. However, we administer each Contract separately. 4 PROSPECTUS
Page ------------------------------------------------------------------ TrueBalance/SM/ Asset Allocation Program 48 ------------------------------------------------------------------ TrueReturn/SM/ Accumulation Benefit Option 57 ------------------------------------------------------------------ Valuation Date 19 ------------------------------------------------------------------ Variable Account 79 ------------------------------------------------------------------ Variable Sub-Account 1 ------------------------------------------------------------------ Withdrawal Benefit Factor (for the SureIncome Withdrawal Benefit Option) 30 ------------------------------------------------------------------ Withdrawal Benefit Factor (for the SureIncome Plus Withdrawal Benefit Option) 34 ------------------------------------------------------------------ Withdrawal Benefit Factor (for the SureIncome for Life Withdrawal Benefit Option) 37 ------------------------------------------------------------------ Withdrawal Benefit Payout Phase (for the SureIncome Withdrawal Benefit Option) 30 ------------------------------------------------------------------ Withdrawal Benefit Payout Phase (for the SureIncome Plus Withdrawal Benefit Option) 34 ------------------------------------------------------------------ Withdrawal Benefit Payout Phase (for the SureIncome for Life Withdrawal Benefit Option) 38 ------------------------------------------------------------------ Withdrawal Benefit Payout Start Date (for the SureIncome Withdrawal Benefit Option) 30 ------------------------------------------------------------------ Withdrawal Benefit Payout Start Date (for the SureIncome Plus Withdrawal Benefit Option) 34 ------------------------------------------------------------------ Withdrawal Benefit Payout Start Date (for the SureIncome for Life Withdrawal Benefit Option) 38 ------------------------------------------------------------------ Withdrawal Benefit Option 30 ------------------------------------------------------------------ Withdrawal Benefit Option Fee 13 ------------------------------------------------------------------ OVERVIEW OF CONTRACTS - -------------------------------------------------------------------------------- The Contracts offer many of the same basic features and benefits. They differ primarily with respect to the charges imposed, as follows: .. The ALLSTATE VARIABLE ANNUITY CONTRACT has a mortality and expense risk charge of 1.10%, an administrative expense charge of 0.19%*, and a withdrawal charge of up to 7% with a 7-year withdrawal charge period; .. The ALLSTATE VARIABLE ANNUITY - L SHARE CONTRACT has a mortality and expense risk charge of 1.50%, an administrative expense charge of 0.19%*, and a withdrawal charge of up to 7% with a 3-year withdrawal charge period. Other differences between the Contracts relate to available Fixed Account Options. For a side-by-side comparison of these differences, please refer to Appendix A of this prospectus. * The administrative expense charge may be increased, but will never exceed 0.35%. Once your Contract is issued, we will not increase the administrative expense charge for your Contract. The administrative expense charge is 0.19% for Contracts issued before January 1, 2005 and 0.19% for Contracts issued on or after October 17, 2005. The administrative expense charge is 0.30% for Contracts issued on or after January 1, 2005 and prior to October 17, 2005; effective October 17, 2005 and thereafter, the administrative expense charge applied to such Contracts is 0.19%. 5 PROSPECTUS THE CONTRACTS AT A GLANCE - -------------------------------------------------------------------------------- The following is a snapshot of the Contracts. Please read the remainder of this prospectus for more information. 6 PROSPECTUS
FLEXIBLE PAYMENTS WE ARE NO LONGER OFFERING NEW CONTRACTS. You can add to your Contract as often and as much as you like, but each subsequent payment must be at least $1,000 ($50 for automatic payments). We may limit the cumulative amount of purchase payments to a maximum of $1,000,000 in any Contract. - --------------------------------------------------------------------------------------------------------- TRIAL EXAMINATION PERIOD You may cancel your Contract within 20 days of receipt or any longer period as your state may require ("TRIAL EXAMINATION PERIOD"). Upon cancellation, we will return your purchase payments adjusted, to the extent federal or state law permits, to reflect the investment experience of any amounts allocated to the Variable Account, including the deduction of mortality and expense risk charges and administrative expense charges. See "Trial Examination Period" for details. - --------------------------------------------------------------------------------------------------------- EXPENSES Each Portfolio pays expenses that you will bear indirectly if you invest in a Variable Sub-Account. You also will bear the following expenses: ALLSTATE VARIABLE ANNUITY CONTRACTS Annual mortality and expense risk charge equal to 1.10% of average daily net assets. Withdrawal charges ranging from 0% to 7% of purchase payments withdrawn. ALLSTATE VARIABLE ANNUITY - L SHARE CONTRACTS Annual mortality and expense risk charge equal to 1.50% of average daily net assets. Withdrawal charges ranging from 0% to 7% of purchase payments withdrawn. ALL CONTRACTS Annual administrative expense charge of 0.19% for Contracts issued before January 1, 2005 and for Contracts issued on or after October 17, 2005 (0.30% for Contracts issued on or after January 1, 2005 and prior to October 17, 2005; effective October 17, 2005 and thereafter, the annual administrative expense charge applied to such Contracts is 0.19%; up to 0.35% for future Contracts). Annual contract maintenance charge of $30 (waived in certain cases). If you select the MAXIMUM ANNIVERSARY VALUE (MAV) DEATH BENEFIT OPTION ("MAV DEATH BENEFIT OPTION") you will pay an additional mortality and expense risk charge of 0.20% (up to 0.30% for Options added in the future). If you select ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION, you will pay an additional mortality and expense risk charge of 0.30%. If you select the EARNINGS PROTECTION DEATH BENEFIT OPTION you will pay an additional mortality and expense risk charge of 0.25% or 0.40% (up to 0.35% or 0.50% for Options added in the future) depending on the age of the oldest Owner and oldest Annuitant on the date we receive the completed application or request to add the benefit, whichever is later ("RIDER APPLICATION DATE").7 PROSPECTUS
If you select the TRUERETURN/SM/ ACCUMULATION BENEFIT OPTION ("TRUERETURN OPTION") you would pay an additional annual fee ("RIDER FEE") of 0.50% (up to 1.25% for Options added in the future) of the BENEFIT BASE in effect on each Contract anniversary ("CONTRACT ANNIVERSARY") during the Rider Period. You may not select the TrueReturn Option together with a Retirement Income Guarantee Option or any Withdrawal Benefit Option. We discontinued offering the SUREINCOME WITHDRAWAL BENEFIT OPTION ("SUREINCOME OPTION") as of May 1, 2006, except in a limited number of states. If you elected the SureIncome Option prior to May 1, 2006, you would pay an additional annual fee ("SUREINCOME OPTION FEE") of 0.50% of the BENEFIT BASE on each Contract Anniversary (see the SureIncome Option Fee section). You may not select the SureIncome Option together with a Retirement Income Guarantee Option, a TrueReturn Option or any other Withdrawal Benefit Option. If you select the SUREINCOME PLUS WITHDRAWAL BENEFIT OPTION ("SUREINCOME PLUS OPTION") you would pay an additional annual fee ("SUREINCOME PLUS OPTION FEE") of 0.65% (up to 1.25% for Options added in the future) of the BENEFIT BASE on each Contract Anniversary (see the SureIncome Plus Option Fee section). You may not select the SureIncome Plus Option together with a Retirement Income Guarantee Option, a TrueReturn Option or any other Withdrawal Benefit Option. If you select the SUREINCOME FOR LIFE WITHDRAWAL BENEFIT OPTION ("SUREINCOME FOR LIFE OPTION") you would pay an additional annual fee ("SUREINCOME FOR LIFE OPTION FEE") of 0.65% (up to 1.25% for Options added in the future) of the BENEFIT BASE on each Contract Anniversary (see the SureIncome For Life Option Fee section). You may not select the SureIncome For Life Option together with a Retirement Income Guarantee Option, a TrueReturn Option or any other Withdrawal Benefit Option. We discontinued offering RETIREMENT INCOME GUARANTEE OPTION 1 ("RIG 1") as of January 1, 2004 (up to May 1, 2004 in certain states). If you elected RIG 1 prior to May 1, 2004, you will pay an additional annual fee ("Rider Fee") of 0.40% of the Income Base in effect on a Contract Anniversary. We discontinued offering RETIREMENT INCOME GUARANTEE OPTION 2 ("RIG 2") as of January 1, 2004 (up to May 1, 2004 in certain states). If you elected RIG 2 prior to May 1, 2004, you will pay an additional annual Rider Fee of 0.55% of the INCOME BASE in effect on a Contract Anniversary. If you select the INCOME PROTECTION BENEFIT OPTION you will pay an additional mortality and expense risk charge of 0.50% (up to 0.75% for Options added in the future) during the Payout Phase of your Contract. If you select the SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION or SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION FOR CUSTODIAL INDIVIDUAL RETIREMENT ACCOUNTS ("CSP") you would pay an additional annual fee ("RIDER FEE") of 0.10%* (up to 0.15% for Options added in the future) of the Contract Value ("CONTRACT VALUE") on each Contract Anniversary. These Options are only available for certain types of IRA Contracts, which are Contracts issued with an Individual Retirement Annuity or Account ("IRA") under Section 408 of the Internal Revenue Code. The CSP is only available for certain Custodial Individual Retirement Accounts established under Section 408 of the Internal 8 PROSPECTUS
Revenue Code. For Contracts purchased on or after January 1, 2005, we may discontinue offering the Spousal Protection Benefit (Co-Annuitant) Option at any time prior to the time you elect to receive it. *NO RIDER FEE WAS CHARGED FOR THESE OPTIONS FOR CONTRACT OWNERS WHO ADDED THESE OPTIONS PRIOR TO JANUARY 1, 2005. SEE PAGE 13 FOR DETAILS. Transfer fee equal to 1.00% (subject to increase to up to 2.00%) of the amount transferred after the 12th transfer in any Contract Year ("CONTRACT YEAR"), which we measure from the date we issue your Contract or a Contract Anniversary. State premium tax (if your state imposes one) NOT ALL OPTIONS ARE AVAILABLE IN ALL STATES WE MAY DISCONTINUE OFFERING ANY OF THESE OPTIONS AT ANY TIME PRIOR TO THE TIME YOU ELECT TO RECEIVE IT. - -------------------------------------------------------------------------------------------------------- INVESTMENT ALTERNATIVES Each Contract offers several investment alternatives including: up to 3 Fixed Account Options that credit interest at rates we guarantee, and 62* Variable Sub-Accounts investing in Portfolios offering professional money management by these investment advisers: Morgan Stanley Investment Advisors Inc. Morgan Stanley Investment Management, Inc. ** Van Kampen Asset Management Invesco Advisers, Inc. AllianceBernstein L.P. Fidelity Management & Research Company Franklin Advisers, Inc. Franklin Mutual Advisers, LLC Goldman Sachs Asset Management, L.P. Pacific Investment Management Company LLC Putnam Investment Management, LLC Templeton Investment Counsel, LLC *Certain Variable Sub-Accounts may not be available depending on the date you purchased your Contract. Please see page 44 for information about Sub-Accounts and/or Portfolio liquidations, mergers, closures and name changes. ** Morgan Stanley Investment Management Inc., the investment adviser to the UIF Portfolios, does business in certain instances using the name Van Kampen. NOT ALL FIXED ACCOUNT OPTIONS ARE AVAILABLE IN ALL STATES OR WITH ALL CONTRACTS. To find out current rates being paid on the Fixed Account Option(s), or to find out how the Variable Sub-Accounts have performed, please call us at 1-800-457-7617.9 PROSPECTUS
- ------------------------------------------------------------------------------------------------ SPECIAL SERVICES For your convenience, we offer these special services: AUTOMATIC PORTFOLIO REBALANCING PROGRAM AUTOMATIC ADDITIONS PROGRAM DOLLAR COST AVERAGING PROGRAM SYSTEMATIC WITHDRAWAL PROGRAM TRUEBALANCE/SM/ ASSET ALLOCATION PROGRAM - ------------------------------------------------------------------------------------------------ INCOME PAYMENTS You can choose fixed income payments, variable income payments, or a combination of the two. You can receive your income payments in one of the following ways (you may select more than one income plan): life income with guaranteed number of payments joint and survivor life income with guaranteed number of payments guaranteed number of payments for a specified period life income with cash refund joint life income with cash refund life income with installment refund joint life income with installment refund Prior to May 1, 2004, Allstate Life also offered two Retirement Income Guarantee Options that guarantee a minimum amount of fixed income payments you can receive if you elect to receive income payments. In addition, we offer an Income Protection Benefit Option that guarantees that your variable income payments will not fall below a certain level. - ------------------------------------------------------------------------------------------------ DEATH BENEFITS If you, the Annuitant, or Co-Annuitant die before the Payout Start Date, we will pay a death benefit subject to the conditions described in the Contract. In addition to the death benefit included in your Contract ("RETURN OF PREMIUM DEATH BENEFIT" or "ROP DEATH BENEFIT"), the death benefit options we currently offer include: MAV DEATH BENEFIT OPTION; ENHANCED BENEFICIARY PROTECTION (ANNUAL INCREASE) OPTION; AND EARNINGS PROTECTION DEATH BENEFIT OPTION The SureIncome Plus Option and SureIncome For Life Option also include a death benefit option, the SureIncome Return of Premium Death Benefit, ("SUREINCOME ROP DEATH BENEFIT"). - ------------------------------------------------------------------------------------------------ TRANSFERS Before the Payout Start Date, you may transfer your Contract Value among the investment alternatives, with certain restrictions. The minimum amount you may transfer is $100 or the amount remaining in the investment alternative, if less. The minimum amount that can be transferred into the Standard Fixed Account or Market Value Adjusted Account Options is $100. A charge may apply after the 12th transfer in each Contract Year.10 PROSPECTUS
- --------------------------------------------------------------------------------------------- WITHDRAWALS You may withdraw some or all of your Contract Value at any time during the Accumulation Phase and during the Payout Phase in certain cases. In general, you must withdraw at least $50 at a time. Withdrawals taken prior to the Payout Start Date are generally considered to come from the earnings in the Contract first. If the Contract is tax-qualified, generally all withdrawals are treated as distributions of earnings. Withdrawals of earnings are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty. A withdrawal charge and a MARKET VALUE ADJUSTMENT may also apply. If any withdrawal reduces your Contract Value to less than $1,000, we will treat the request as a withdrawal of the entire Contract Value unless a Withdrawal Benefit Option is in effect under your Contract. Your Contract will terminate if you withdraw all of your Contract Value. - ---------------------------------------------------------------------------------------------HOW THE CONTRACTS WORK - -------------------------------------------------------------------------------- Each Contract basically works in two ways. First, each Contract can help you (we assume you are the "CONTRACT OWNER") save for retirement because you can invest in your Contract's investment alternatives and generally pay no federal income taxes on any earnings until you withdraw them. You do this during what we call the "ACCUMULATION PHASE" of the Contract. The Accumulation Phase begins on the date we issue your Contract (we call that date the "ISSUE DATE") and continues until the Payout Start Date, which is the date we apply your money to provide income payments. During the Accumulation Phase, you may allocate your purchase payments to any combination of the Variable Sub-Accounts and/or Fixed Account Options. If you invest in a Fixed Account Option, you will earn a fixed rate of interest that we declare periodically. If you invest in any of the Variable Sub-Accounts, your investment return will vary up or down depending on the performance of the corresponding Portfolios. Second, each Contract can help you plan for retirement because you can use it to receive retirement income for life and/or for a pre-set number of years, by selecting one of the income payment options (we call these "INCOME PLANS") described on page 63. You receive income payments during what we call the "PAYOUT PHASE" of the Contract, which begins on the Payout Start Date and continues until we make the last payment required by the Income Plan you select. During the Payout Phase, if you select a fixed income payment option, we guarantee the amount of your payments, which will remain fixed. If you select a variable income payment option, based on one or more of the Variable Sub-Accounts, the amount of your payments will vary up or down depending on the performance of the corresponding Portfolios. The amount of money you accumulate under your Contract during the Accumulation Phase and apply to an Income Plan will determine the amount of your income payments during the Payout Phase. The timeline below illustrates how you might use your Contract. [FLOW CHART] Other income payment options are also available. See "INCOME PAYMENTS." As the Contract Owner, you exercise all of the rights and privileges provided by the Contract. If you die, any surviving Contract Owner or, if there is none, the BENEFICIARY will exercise the rights and privileges provided by the Contract. See "The Contracts." In addition, if you die before the Payout Start Date, we will pay a death benefit to any surviving Contract Owner or, if there is none, to your Beneficiary. See "Death Benefits." Please call us at 1-800-457-7617 if you have any question about how the Contracts work. 11 PROSPECTUS EXPENSE TABLE - -------------------------------------------------------------------------------- THE TABLE BELOW LISTS THE EXPENSES THAT YOU WILL BEAR DIRECTLY OR INDIRECTLY WHEN YOU BUY A CONTRACT. THE TABLE AND THE EXAMPLES THAT FOLLOW DO NOT REFLECT PREMIUM TAXES THAT MAY BE IMPOSED BY THE STATE WHERE YOU RESIDE. FOR MORE INFORMATION ABOUT VARIABLE ACCOUNT EXPENSES, SEE "EXPENSES," BELOW. FOR MORE INFORMATION ABOUT PORTFOLIO EXPENSES, PLEASE REFER TO THE PROSPECTUSES FOR THE FUNDS. CONTRACT OWNER TRANSACTION EXPENSES Withdrawal Charge (as a percentage of purchase payments withdrawn)* * Each Contract Year, you may withdraw a portion of your purchase payments (and/or your earnings, in the case of Charitable Remainder Trusts) without incurring a withdrawal charge ("Free Withdrawal Amount"). See "Withdrawal Charges" for more information. ** Waived in certain cases. See "Expenses." *** Applies solely to the 13th and subsequent transfers within a Contract Year, excluding transfers due to dollar cost averaging and automatic portfolio rebalancing. We are currently assessing a transfer fee of 1.00% of the amount transferred, however, we reserve the right to raise the transfer fee to up to 2.00% of the amount transferred. VARIABLE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSET VALUE DEDUCTED FROM EACH VARIABLE SUB-ACCOUNT) If you select the basic Contract without any optional benefits, your Variable Account expenses would be as follows:
Number of Complete Years Since We Received the Purchase Payment Being Withdrawn/Applicable Charge: ------------------------------------------------------------------------------------------------ Contract: 0 1 2 3 4 5 6 7 8+ Allstate Variable Annuity 7% 7% 6% 5% 4% 3% 2% 0% 0% Allstate Variable Annuity - L Share 7% 6% 5% 0% All Contracts: Annual Contract Maintenance Charge $30** Transfer Fee up to 2.00% of the amount transferred*** * We reserve the right to raise the administrative expense charge to 0.35%. However, we will not increase the charge once we issue your Contract. The administrative expense charge is 0.19% for Contracts issued before January 1, 2005 and for Contracts issued on or after October 17, 2005. The administrative expense charge is 0.30% for Contracts issued on or after January 1, 2005 and prior to October 17, 2005; effective October 17, 2005 and thereafter, the administrative expense charge applied to such Contracts is 0.19%. Each Contract also offers optional riders that may be added to the Contract. For each optional rider you select, you would pay the following additional mortality and expense risk charge associated with each rider. MAV Death Benefit Option 0.20% (up to 0.30% for Options added in the future) Enhanced Beneficiary Protection (Annual Increase) Option 0.30% Earnings Protection Death Benefit 0.25% (up to 0.35% for Options added Option (issue age 0-70) in the future) Earnings Protection Death Benefit 0.40% (up to 0.50% for Options added Option (issue age 71-79) in the future) If you select the Options with the highest possible combination of mortality and expense risk charges, your Variable Account expenses would be as follows, assuming current expenses:
Mortality and Expense Administrative Total Variable Account Basic Contract (without any optional benefit) Risk Charge Expense Charge* Annual Expense - ---------------------------------------------------------------------------------------------------------------------------- Allstate Variable Annuity 1.10% 0.19% 1.29% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Variable Annuity - L Share 1.50% 0.19% 1.69% - ---------------------------------------------------------------------------------------------------------------------------- * As described above, the administrative expense charge and the mortality and expense charge for certain Options may be higher for future Contracts. However, we will not increase the administrative expense charge once we issue your Contract, and we will not increase the charge for an Option once we add the Option to your Contract. The administrative expense charge is 0.19% for Contracts issued before January 1, 2005 and for Contracts issued on or after October 17, 2005. The administrative expense charge is 0.30% for Contracts issued on or after January 1, 2005 and prior to October 17, 2005; effective October 17, 2005 and thereafter, the administrative expense charge applied to such Contracts is 0.19%. 12 PROSPECTUS
Contract with the MAV Death Benefit Option, Enhanced Beneficiary Protection (Annual Increase) Option, Earnings Mortality and Expense Administrative Total Variable Account Protection Death Benefit Option (issue age 71-79) Risk Charge* Expense Charge* Annual Expense - ---------------------------------------------------------------------------------------------------------------------------- Allstate Variable Annuity 2.00% 0.19% 2.19% - ---------------------------------------------------------------------------------------------------------------------------- Allstate Variable Annuity - L Share 2.40% 0.19% 2.59% - ---------------------------------------------------------------------------------------------------------------------------- TRUERETURN/SM/ ACCUMULATION BENEFIT OPTION FEE* (ANNUAL RATE AS A PERCENTAGE OF BENEFIT BASE ON A CONTRACT ANNIVERSARY) * Up to 1.25% for TrueReturn Options added in the future. See "TrueReturn/SM/ Accumulation Benefit Option" for details. SUREINCOME WITHDRAWAL BENEFIT OPTION FEE* (ANNUAL RATE AS A PERCENTAGE OF BENEFIT BASE ON A CONTRACT ANNIVERSARY)
TrueReturn/SM/ Accumulation Benefit Option 0.50%* -------------------------------------------------------------------- * Effective May 1, 2006, we ceased offering the SureIncome Option except in a limited number of states. ** Up to 1.25% for SureIncome Options added in the future. See "SureIncome Withdrawal Benefit Option" for details. SUREINCOME PLUS WITHDRAWAL BENEFIT OPTION FEE (ANNUAL RATE AS A PERCENTAGE OF BENEFIT BASE ON A CONTRACT ANNIVERSARY)
SureIncome Withdrawal Benefit Option 0.50%** --------------------------------------------------------------------- * Up to 1.25% for SureIncome Plus Options added in the future. See "SureIncome Plus Withdrawal Benefit Option" for details. SUREINCOME FOR LIFE WITHDRAWAL BENEFIT OPTION FEE (ANNUAL RATE AS A PERCENTAGE OF BENEFIT BASE ON A CONTRACT ANNIVERSARY)
SureIncome Plus Withdrawal Benefit Option 0.65%* -------------------------------------------------------------------- * Up to 1.25% for SureIncome For Life Options added in the future. See "SureIncome For Life Withdrawal Benefit Option" for details. RETIREMENT INCOME GUARANTEE OPTION FEE* (ANNUAL RATE AS A PERCENTAGE OF INCOME BASE ON A CONTRACT ANNIVERSARY)
SureIncome For Life Withdrawal Benefit Option 0.65%* -------------------------------------------------------------------- * We discontinued offering the Retirement Income Guarantee Options as of January 1, 2004 (up to May 1, 2004 in certain states). Fees shown apply to Contract Owners who selected an Option prior to January 1, 2004 (up to May 1, 2004 in certain states). SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION FEE (AS A PERCENTAGE OF CONTRACT VALUE ON EACH CONTRACT ANNIVERSARY)
RIG 1 0.40% ------------------------------------------------------------------- RIG 2 0.55% ------------------------------------------------------------------- * Applies to Contract Owners who select the option on or after January 1, 2005. Up to 0.15% for options added in the future. SPOUSAL PROTECTION BENEFIT (CO-ANNUITANT) OPTION FOR CUSTODIAL INDIVIDUAL RETIREMENT ACCOUNTS FEE (AS A PERCENTAGE OF CONTRACT VALUE ON EACH CONTRACT ANNIVERSARY)
Spousal Protection Benefit (Co-Annuitant) Option 0.10%* -------------------------------------------------------------------- * Applies to Contract owners who select the option on or after January 1, 2005. Up to 0.15% for options added in the future. If you select the Spousal Protection Benefit (Co-Annuitant) Option or Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts on or after January 1, 2005, you will pay a Rider Fee at the annual rate of 0.10% of the Contract Value on each Contract Anniversary. We reserve the right to increase the annual Rider Fee to up to 0.15% of the Contract Value. If you selected either of these Options prior to January 1, 2005, there is no charge associated with your Option. See "Spousal Protection Benefit (Co-Annuitant) Option Fee and Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts Fee" for details. 13 PROSPECTUS
Spousal Protection Benefit (Co-Annuitant) Option for Custodial Individual Retirement Accounts 0.10%* -------------------------------------------------------------------- INCOME PROTECTION BENEFIT OPTION (AS A PERCENTAGE OF THE AVERAGE DAILY NET VARIABLE ACCOUNT ASSETS SUPPORTING THE VARIABLE INCOME PAYMENTS TO WHICH THE OPTION APPLIES) * The charge for the Income Protection Benefit Option applies during the Payout Phase. We reserve the right to raise the charge to up to 0.75% for Options added in the future. See "Income Payments - Income Protection Benefit Option," below, for details. PORTFOLIO ANNUAL EXPENSES - MINIMUM AND MAXIMUM The next table shows the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the time that you own the Contract. Advisers and/or other service providers of certain Portfolios may have agreed to waive their fees and/or reimburse Portfolio expenses in order to keep the Portfolios' expenses below specified limits. The range of expenses shown in this table does not show the effect of any such fee waiver or expense reimbursement. More detail concerning each Portfolio's fees and expenses appears in the prospectus for each Portfolio. ANNUAL PORTFOLIO EXPENSES ------------------------------------------------------------------------------ Minimum Maximum ------------------------------------------------------------------------------ Total Annual Portfolio Operating Expenses/(1)/ (expenses that are deducted from Portfolio assets, which may include management fees, distribution and/or services (12b-1) fees, and other expenses) 0.53% 2.00% ------------------------------------------------------------------------------ (1)Expenses are shown as a percentage of Portfolio average daily net assets (before any waiver or reimbursement) as of December 31, 2009 (except as otherwise noted). EXAMPLE 1 This Example is intended to help you compare the cost of investing in the Contracts with the cost of investing in other variable annuity contracts. These costs include Contract owner transaction expenses, Contract fees, Variable Account annual expenses (with a 0.19% annual administrative charge), and Portfolio fees and expenses. The example shows the dollar amount of expenses that you would bear directly or indirectly if you: .. invested $10,000 in the Contract for the time periods indicated; .. earned a 5% annual return on your investment; .. surrendered your Contract, or you began receiving income payments for a specified period of less than 120 months, at the end of each time period; .. elected the MAV Death Benefit Option and the Enhanced Beneficiary Protection (Annual Increase) Option; .. elected the Earnings Protection Death Benefit Option (assuming issue age 71-79); .. elected the Spousal Protection Benefit (Co-Annuitant) Option; and .. elected the SureIncome Plus Withdrawal Benefit Option. THE EXAMPLE DOES NOT INCLUDE ANY TAXES OR TAX PENALTIES YOU MAY BE REQUIRED TO PAY IF YOU SURRENDER YOUR CONTRACT. The first line of the example assumes that the maximum fees and expenses of any of the Portfolios are charged. The second line of the example assumes that the minimum fees and expenses of any of the Portfolios are charged. Your actual expenses may be higher or lower than those shown below.
Income Protection Benefit Option 0.50%* -------------------------------------------------------------------- 14 PROSPECTUS
Allstate Variable Annuity Allstate Variable Annuity - L Share 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years - -------------------------------------------------------------------------------------------------- Costs Based on Maximum Annual Portfolio Expenses $1,171 $2,245 $3,244 $5,871 $1,209 $2,267 $3,071 $6,150 - -------------------------------------------------------------------------------------------------- Costs Based on Minimum Annual Portfolio Expenses $1,030 $1,839 $2,597 $4,733 $1,069 $1,867 $2,439 $5,063 - -------------------------------------------------------------------------------------------------- EXAMPLE 2 THIS EXAMPLE USES THE SAME ASSUMPTIONS AS EXAMPLE 1 ABOVE, EXCEPT THAT IT ASSUMES YOU DECIDED NOT TO SURRENDER YOUR CONTRACT, OR YOU BEGAN RECEIVING INCOME PAYMENTS FOR A SPECIFIED PERIOD OF AT LEAST 120 MONTHS, AT THE END OF EACH TIME PERIOD.
Allstate Variable Annuity Allstate Variable Annuity - L Share 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years - --------------------------------------------------------------------------------------------------