Security Life Separate Account L1 approved portfolio reorganizations scheduled for July 10 and July 17, moving policy investments into designated surviving portfolios. Investors retain equal total net asset value after automatic reallocations, incur no resulting tax Liability and can redirect allocations or transfer Assets before the applicable date.

Key Highlights

  • Policy owners can move allocations from merging portfolios before the applicable reorganization date without a transfer charge.
  • Automatic reallocations will preserve each policy’s value immediately before and after the transaction.
  • Security Life Separate Account L1 has approved reorganizations scheduled around July 10 and July 17.
  • Assets will move from designated merging portfolios into corresponding surviving portfolios at equal total net asset value.

Approved Portfolio Reorganizations

Security Life Separate Account L1 has approved reorganizations for Investment portfolios scheduled around July 10 and July 17. The reorganizations move assets from designated merging portfolios into corresponding surviving portfolios, creating a planned transition between the affected investment options.

The changes concern policy subaccounts connected to the Voya Russell, Voya Solution and VY real estate portfolios. The article identifies these portfolio groups as the areas affected by the scheduled reorganizations, while the transfer itself follows the established merging-and-surviving portfolio structure.

Movement From Merging Portfolios

Assets held in subaccounts linked to the merging portfolios will be redirected to their corresponding surviving portfolios. This movement is part of the reorganization process and applies to investments connected with the designated portfolios.

The transfer is based on equal total net asset value. As a result, the policy value represented by the investment is kept equal while the assets move from the merging portfolio to the surviving portfolio.

Automatic Reallocation of Investments

Policy owners do not need to separately direct the assets for the automatic reallocation described in the article. Investments in the affected subaccounts are redirected to the corresponding surviving portfolios as part of the scheduled reorganization.

The automatic process applies to investments linked to the designated merging portfolios. It is intended to carry those investments into the corresponding surviving portfolios without changing the total net asset value represented by the transferred policy investment.

Treatment of Future Allocations

Allocations directed to a merging portfolio after its reorganization date will not continue flowing into that merging portfolio. Instead, the allocation will flow into the corresponding surviving portfolio.

This automatic redirection applies unless policy owners provide different instructions. The surviving portfolio therefore becomes the destination for later allocations that would otherwise have been directed to the applicable merging portfolio.

Policy Subaccounts Affected

The affected policy subaccounts are connected to the Voya Russell, Voya Solution and VY real estate portfolios. These names identify the portfolio areas associated with the approved reorganizations described for Separate Account L1. Their investments will follow the corresponding surviving portfolio arrangement.

What Policy Owners Should Note

The key dates are the scheduled reorganization dates around July 10 and July 17. The applicable date depends on the designated portfolio involved, while the article presents both dates as part of the overall schedule.

Policy owners should note that automatic reallocation governs both existing investments in the merging portfolios and later allocations directed there after the applicable reorganization date. Different instructions may be provided for future allocations, but the stated automatic process otherwise directs them to the corresponding surviving portfolios.

Source(s)

  • https://www.sec.gov/Archives/edgar/data/917677/000091767726000320/vulcv0726_497.htm