DEATH BENEFIT CALCULATION. The death benefit will be calculated as of the Valuation Period that We receive a complete death benefit claim from the first Beneficiary of record prior to the Transaction Closing Time. The amount of the death benefit will be the Contract Value. The death benefit amount will be increased by interest at the rate required by the jurisdiction in which this Contract is delivered from the date We receive all required documents until payment is made, less any applicable Premium Tax. If the Owner dies before the entire interest in the Contract has been distributed, and the surviving spouse is not the sole Beneficiary, any remaining balance will:
1) Be distributed to the appropriate Beneficiary within 5 years from the death of the Owner.
2) Be distributed over the life of the Beneficiary or over a period not extending beyond the life expectancy of such Beneficiary, and
3) Such distributions must begin no later than one year after the date of death or a later date as prescribed by Internal Revenue Service regulations. Each Beneficiary may elect one of the following death benefit options:
1) Paid in a single sum; or
2) Elect a payment plan, as described in the Payout Endorsement attached to Your Contract. Payments under this Section are in full settlement of all liability under this Contract.
DEATH BENEFIT CALCULATION. The Death Benefit is the Contract Value, which will be calculated as of the Valuation Period that We receive a complete Death Benefit claim in Good Order from the first Primary Beneficiary of record prior to the close of that Valuation Period’s Business Day. If Written Notice is received after the close of that Valuation Period’s Business Day, the calculation will be processed as of the close of the next Valuation Period’s Business Day. The amount of the Death Benefit will be the Contract Value, unless so modified by attachment of a Rider or Endorsement. The Death Benefit amount will be increased by interest at the rate required by the jurisdiction in which this Contract is delivered from the date We receive all required documents in Good Order until payment is made, less any applicable Premium Tax, Rider or Endorsement fees, or Contract fees. In the case of multiple Beneficiaries, the amount received by each Beneficiary after the first Primary Beneficiary claim is processed will be the Death Benefit, subject to the Investment Option performance of the portion of the Contract Value attributable to each Beneficiary until the Valuation Period on which their Good Order claim is completed. If the Contract Owner dies before the entire interest in the Contract has been distributed, and the surviving spouse is not the sole Primary Beneficiary, any remaining balance will: 1) Be distributed to the appropriate Primary Beneficiary(ies) within five (5) years from the death of the Contract Owner or 2) Be distributed over the life of the Primary Beneficiary(ies) or over a period not extending beyond the life expectancy of such Primary Beneficiary(ies), and 3) Such distributions must begin no later than one (1) year after the date of death of the Contract Owner or a later date as prescribed by Internal Revenue Service regulations. Each Primary Beneficiary may elect one of the following Death Benefit options: 1) Paid in a single sum; or 2) Elect a payment plan, as described in [Section 9] of Your Contract. Payments under this Section are in full settlement of all liability under this Contract.
DEATH BENEFIT CALCULATION. When Liberty Life receives Due Proof of Death, the Death Benefit will be calculated as of the actual date of death. Accumulation Units in the Variable Account will be sold on the date Due Proof of Death is received by the Service Center. The proceeds will be placed into a suspense account. Interest will be credited at the rate established by Liberty Life or in accordance with state laws, if greater. Liberty Life will typically pay Death Benefit proceeds within seven days after Liberty Life receives Due Proof of Death. Subjects of Required Amendments for the Modified Single Payment Variable Life Insurance Contract
A. Incomplete Applications We can require an amendment if the following questions on the application initially were left blank or corrected, but not initialed by the client.
1. Plan of Insurance 2. Initial Payment 3-4. Insured Name 6. Owner Name 7. Beneficiary name 8b. 1st Year Fixed Account Guaranteed Interest Rate 9-10. All medical questions (underwriting information) Contract Date Note: If a Contract amendment becomes necessary, we will use the amendment to correct any other area of the application as needed.
