Common use of Beneficiary Continuation Clause in Contracts

Beneficiary Continuation. A Beneficiary who is not a spouse and who is not a non-natural person can choose to continue the Contract until the fifth anniversary of the Owner’s death. The Contract can be continued by a Beneficiary only if his or her share of the death benefit is at least equal to the Contract Minimum specified on the Contract Schedule. If the Beneficiary continues the Contract under this provision his or her share will not be paid. It will instead be continued in the Contract on the date we determine the Death Benefit Amount. Such Beneficiary will have the right to make partial and full withdrawals of his/her share of the Contract, not subject to Withdrawal Charges. Such Beneficiary will also have the right to make transfers at the end of a Term as described on the Contract Schedule. During the continuation period the Beneficiary can choose to receive his/her share of this Contract in a single lump sum payment or, in certain circumstances, may apply it to an Annuity Option or other option acceptable to us that is payable for a term no longer than the life expectancy of the Beneficiary starting within one year after the death of the Owner. On the fifth anniversary of the Owner’s death, any Beneficiary will be paid his/her share of the Account Value that has not been applied to an Annuity Option or other settlement option permissible under the Code, in a single lump sum payment and this Contract will terminate.