Security Life Separate Account L1 scheduled portfolio reorganizations for July 10, 2026 and July 17, 2026, pairing merging portfolios with surviving portfolios. Policy owners’ investments were to retain equal total net asset value without tax liability, while future allocations would redirect automatically unless alternative instructions were provided.

Key Highlights

  • Security Life Separate Account L1 scheduled portfolio reorganizations for July 10, 2026 and July 17, 2026.
  • Policy owners could transfer amounts from affected subaccounts without a charge before the applicable reorganization date.
  • Surviving portfolios became closed to new investors and new investments by existing investors on each reorganization date.

Reorganization Schedule

Security Life Separate Account L1 scheduled portfolio reorganizations on July 10, 2026, and July 17, 2026, as part of a change to the portfolios available through certain policy subaccounts. The dates identified when the applicable portfolio changes were to occur and when the related treatment of existing and future investments was to take effect.

The reorganizations were scheduled rather than described as an immediate change to all available Investment choices. Each applicable date marked the point at which the corresponding surviving portfolio was to close to new investors and to new investments by existing investors.

Portfolios Involved

The scheduled mergers involved portfolios associated with three areas: mid-cap, solution and real-estate investments.

The changes affected availability through policy subaccounts rather than describing a general change to every investment option. The relevant subaccounts were those invested in portfolios participating in the scheduled mergers.

Transfers Before the Date

Before the applicable reorganization date, policy owners could move amounts from a subaccount invested in a merging portfolio to another available subaccount or to the fixed interest option. The article states that these moves could be made without a transfer charge.

Those transfers also would not count toward any applicable transfer restriction or limit. This treatment applied before the relevant date for the reorganization and covered transfers away from the affected merging portfolio to an available alternative or the fixed interest option.

Closing of Surviving Portfolios

On each reorganization date, the corresponding surviving portfolio was to close to new investors. It was also to close to new investments by existing investors, so the date applied both to people who had not previously invested in the portfolio and to additional investments from current investors.

The closure was part of the scheduled Merger process described for the affected portfolios. The article presents this as the treatment of the surviving portfolio on the applicable date, while separately describing what would happen to the merging portfolio afterward.

Removal of Merging Portfolios

After the applicable reorganization, the merging portfolio would no longer be available through the policy. Its continued availability as a policy subaccount investment option would therefore end once the corresponding scheduled change had taken place.

The article connects this removal to the automatic handling of future allocations directed to the merging portfolio. Rather than remaining invested through the discontinued policy option, those allocations would be directed to the corresponding surviving portfolio unless different instructions were supplied.

Automatic Allocation Changes

Allocations directed to a merging portfolio after the applicable reorganization would move automatically to its corresponding surviving portfolio. This automatic movement applied unless policy owners supplied alternative instructions for those allocations.

The scheduled changes therefore included both an investment-option closure and a default destination for allocations that still referred to the merging portfolio. Policy owners could avoid that default by providing alternative instructions, while the stated pre-date transfer treatment allowed movement to another available subaccount or the fixed interest option without a transfer charge.

Source(s)

  • https://www.sec.gov/Archives/edgar/data/917677/000091767726000322/vuldb0726_497.htm