Death Benefit Distribution Rules. The Death Benefit must be paid in accordance with the tax qualification endorsement, if any. If the cover page states that this Contract is a Nonqualified Xxxxxxx, then the Death Benefit must be paid either:
Death Benefit Distribution Rules. The Death Benefit must be paid in accordance with the tax qualification endorsement, if any. If the cover page states that this Contract is a Nonqualified Xxxxxxx, then the Death Benefit must be paid either: 1) in full within five years of the date of death; or 2) over the life of the Beneficiary or over a period certain not exceeding his or her life expectancy, with payments at least annually and with the first payment made within one year of the date of death. If the cover page states that this Contract is a Nonqualified Xxxxxxx, and your spouse (as defined by federal tax law) becomes the successor owner of this Contract after your death, then: 1) this rule does not apply to your death; and 2) if the successor owner dies before the Annuity Payout Initiation Date, this rule applies to the death of the successor owner. Payee for Death Benefit Payments Death Benefit payments are made to the Beneficiary as the payee unless: 1) amounts are paid as a tax-free exchange, transfer, or rollover to or for an annuity or tax- qualified account as permitted by federal tax law; or 2) the Beneficiary is a trust, custodial account, corporation, limited liability company, partnership, or other entity, and elects to have Death Benefit payments made to a person to whom the Beneficiary is obligated to make corresponding payments. Death Benefit payments that become due after the death of the payee are made to the contingent payee designated as part of any Payout Option election made by you for the Death Benefit. If there is no such contingent payee surviving, then such payments are made to the contingent payee designated by the Beneficiary. Failing that, such payments are made to the estate of the last payee who received payments. If the Beneficiary designates his or her spouse as the contingent payee and their marriage ends before the Beneficiary’s death, then we will treat the former spouse as having predeceased the Beneficiary except to the extent a court order provides that the rights of the former spouse as contingent payee are to continue. A designation or change of a payee or contingent payee must be made by a Request in Good Order. A Beneficiary may not change a contingent payee designation made as part of a Payout Option election made by you for the Death Benefit. A Beneficiary may make or change any other payee or contingent payee designation at any time. PAYOUT OPTIONS Conditions Payments under a Payout Option are subject to any minimum amounts, payment intervals, ...
