Common use of Death Before the Annuity Start Date Clause in Contracts

Death Before the Annuity Start Date. If the Annuitant dies before distribution of his or her interest in the Contract commences, the entire interest must be distributed by December 31st of the fifth full year which follows the Annuitant's death unless (i) such interest is paid in equal or substantially equal installments over a period not exceeding the lifetime or life expectancy of the Designated Beneficiary, and (ii) payments begin by December 31st of the calendar year which follows the Annuitant's death. If the Designated Beneficiary of the Annuitant is the Annuitant's surviving spouse, the spouse may elect to receive equal or substantially equal payments over the life or life expectancy of the surviving spouse commencing at any date prior to the close of the calendar year in which the deceased Annuitant would have attained age 70 1/2, if later. The surviving spouse may accelerate these payments at any time, i.e., increase the frequency or amount of such payments. However, if the spouse elects to receive the entire interest as a lump sum, such amount must be received by December 31st of the fifth full year which follows the Annuitant's death. If the surviving spouse dies before payments begin, subsequent distributions shall be made as if the spouse had been the Annuitant. In such event, the rules in this Section 6 apply using the date of death of the surviving spouse rather than that of the Annuitant.