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First Investors Modified Single Premium Variable Life (SPVL)

One Premium, Many Benefits

Individuals nearing retirement age often have a need for life insurance, tax-deferred investment options, and vehicles for estate planning, gifting and charitable giving. First Investors Life is pleased to offer Modified Single Premium Variable Life Insurance (SPVL), a life insurance policy that may be appropriate for individuals with those needs or goals.

SPVL Offers:

• Life Insurance Protection
• Tax-Deferred Growth
• Income Tax-Free Death Benefit
• Tax-Free Transfers Among Subaccounts
• Diversification
• Professionally Managed Investment Options plus a Fixed Account

SPVL's Features

• A single premium — Unlike most types of life insurance that require ongoing premium payments for the policy to remain in force, with SPVL you are only required to make a single premium payment. You do have the option to make additional premium payments to increase your coverage, but they are not required.
• Permanent insurance protection¹ — SPVL offers lifetime protection for the insured up to the age of 100. Depending on the insured's underwriting class, the policy's face amount can be significantly greater than your initial premium payment.
• A variety of subaccounts — You may allocate your premium among 13 professionally managed variable subaccounts² and a fixed interest rate account. Each of the subaccounts has its own investment objectives and invests in a portfolio of stocks and/or bonds. This will allow you to diversify your cash value. If your needs or goals change, you may transfer the cash value among any of the subaccounts without any tax consequences. You can invest up to 25% of your premium in the fixed account. Transfers to and from the fixed account are limited.

Note: The death benefit and cash value of your SPVL will fluctuate with the performance of the subaccounts you select and the interest rate paid on any money that you allocate to the fixed account. You bear the entire investment risk on the money you allocate to the subaccounts. However, your minimum death benefit will never be less than the amount of the premium(s) you pay (adjusted proportionately for any loans or surrenders you may take).

• Professional management — Professional portfolio managers closely monitor the investments in each SPVL subaccount. First Investors Life is part of a financial services group that has been helping investors meet their goals since 1930.

Tax Advantages

• Tax-deferred growth — You pay no income tax on the growth of your cash value, unless you make withdrawals through full or partial surrenders of your policy (See “Surrenders” below). This is a powerful tax advantage that may help your cash value and death benefit grow faster.
• Tax-free transfers among investment subaccounts — You may shift your cash value among subaccounts without tax consequences. SPVL offers you two ways to automatically transfer cash value among subaccounts (see “Automated Cash Value Transfers” below).
• Tax-free death benefit — The death benefit from SPVL is paid to your named beneficiary and is generally free of federal income tax and probate costs. This makes SPVL an excellent estate planning tool.

Access to Your Cash Value

SPVL is in a special category of life insurance policies called Modified Endowment Contracts (“MECs”). As a MEC, all withdrawals from SPVL are subject to ordinary income tax on any gains and an additional 10% penalty tax for withdrawals made by the policyholder prior to age 59½. We recommend that you only invest money that you do not anticipate needing during your lifetime. However, if circumstances change, SPVL offers you two ways to access your cash value:

• Surrenders — You may access the cash value of your policy by surrendering either all or part of your policy.³ You may surrender your policy for the total surrender value at any time after your policy has been issued. A surrender is a taxable event. As a general rule, the policy owner is responsible for paying ordinary income taxes on the difference between the surrender value and the premiums paid. Since this policy is classified as a MEC, any surrenders prior to age 59½ will also be subject to a 10% penalty. A partial surrender will reduce the Accumulation Value by the amount of the surrender and will reduce the Total Death Benefit and the Guaranteed Death Benefit proportionately.
• Loans — You may take a policy loan of up to 75% of the surrender value in the first three years or 90% of the surrender value thereafter. Policy loans are charged interest at an annual rate of 6%. An amount equal to the amount you borrow is maintained separately from your invested cash values and continues to earn 4% interest, resulting in a net cost to you of only 2%. For tax purposes, loans are considered distributions from the policy and are subject to ordinary income tax. If the loan is made prior to age 59½, a 10% penalty may also apply. A policy loan may cause additional taxation if it causes the policy to lapse. This could occur if market conditions caused the cash value of the policy to fall below the outstanding loan amount. An outstanding policy loan will be subtracted from the Total Death Benefit in the event of the death of the insured and will be subtracted from the Total Surrender Value in the event the policy is surrendered.

Automated Cash Value Transfers

SPVL offers two ways to automatically transfer cash value among subaccounts:

• Systematic Transfer Option — Allows you to transfer a specific dollar amount of cash value from one or more of the subaccounts to other subaccounts at monthly or quarterly intervals. This feature can be used to set up a "dollar cost averaging" arrangement.
• Automated Subaccount Reallocation Option — Automatically resets your cash value to your desired allocation at quarterly intervals. This feature allows your asset allocation, one of the key factors of successful investing, to remain in sync with your needs and goals.

Is SPVL Right For You?

• Do you need a permanent life insurance policy?
• Have you already provided for your retirement needs?
• Do you want to transfer wealth in a tax efficient manner?
• Are you interested in a life insurance policy with a tax-deferred investment component that could potentially increase the amount of your death benefit?
• Are you willing to assume investment risk with your cash value?
• Do you anticipate not needing access to the money during your lifetime?

If so, you should consider SPVL. Your representative will help you decide if it is right for you and will explain the fees and charges, which include a separate account charge and a cost of insurance charge. Your representative will also help you determine the amount of coverage appropriate for you. Neither First Investors nor its representatives offer tax, legal or estate planning services. Clients should contact their personal tax and legal advisers for any advice about estate planning and gifting.

¹All guarantees are based upon the financial strength and claims-paying ability of First Investors Life Insurance Company.

²The Target Maturity 2007 subaccount is closed to new investments.

³All surrenders may be subject to a surrender charge for up to nine years from the date of the premium payment. Surrender charges depend upon the policyowner's age and length of time since the premium payment was made.