Annuitant Death Sample Clauses

Annuitant Death. When we have due proof that the Annuitant died before the Annuity Commencement Date, we will provide the death proceeds to the beneficiary. Interest upon the death proceeds will be computed daily at the rate set forth in Section 9, A, above from the date of death to the date of payment and will be considered part of the total sum paid. If no beneficiary is designated, the Owner or Owner’s estate will become the beneficiary. a) When the beneficiary is the deceased Annuitant’s surviving spouse. The beneficiary may elect to continue this policy as Owner and Annuitant rather than receiving the death proceeds. If the policy is continued, an amount equal to the excess, if any, of the Guaranteed Minimum Death Benefit (if any) over the Policy Value will then be added to the Policy Value pro rata according to the amount of Policy Value in each Investment Option at that time. This is a one-time only Policy Value adjustment applied at the time the policy is continued, and the Guaranteed Minimum Death Benefit previously selected will continue on as applicable. If no election is received from the spouse following the Annuitant’s death, the policy will be continued with the surviving spouse as the Owner and Annuitant. If the beneficiary elects to have the death proceeds paid rather than continue the policy, the death proceeds must be distributed pursuant to subsections b)(1) and (2) below. b) When the beneficiary is an individual who is not the deceased Annuitant’s surviving spouse. The death proceeds must be distributed: (1) by the end of 5 years after the date of the deceased Annuitant’s death, or (2) payments must begin no later than one year after the deceased Annuitant’s death and must be made for a period certain or for this beneficiary’s lifetime, so long as any period certain does not exceed this beneficiary’s life expectancy (as defined by the Internal Revenue Code and regulations adopted under that Code). Election of this option must be made at least 60 days prior to the one year anniversary of the Annuitant’s death. c) When the beneficiary is not a natural person. The death proceeds may be paid in a lump sum or must be distributed within 5 years after the Annuitant’s death. In 1035 exchanges where there are joint Annuitants, the death proceeds will only be payable upon the death of the surviving Annuitant, subject to the distribution rules described in section II.