DEATH BENEFIT GUARANTEES Clause Samples
The Death Benefit Guarantees clause ensures that a specified payment will be made to designated beneficiaries upon the death of the insured individual, regardless of certain changes in policy value or market conditions. Typically, this clause applies to life insurance or annuity contracts, guaranteeing a minimum payout even if the policy’s investment performance is poor or premiums fluctuate. Its core function is to provide financial security and certainty to beneficiaries, addressing the risk that the policy’s value might otherwise be insufficient at the time of the insured’s death.
DEATH BENEFIT GUARANTEES. Death Benefit Guarantees protect against a premium being in default due to investment experience. This contract includes a Basic Death Benefit Guarantee and, if the Issue Age is less than 70, an Enhanced Death Benefit Guarantee. The Death Benefit Guarantee Premium and Termination Date for each guarantee included are shown on page 3. If you pay sufficient premiums to meet the requirements of a Death Benefit Guarantee and that Death Benefit Guarantee has not terminated, then:
1) No premium will be in default under Section 4.5; and 2) If the Monthly Deduction to be made exceeds the Accumulated Value less any Debt, no deduction will be made and the Monthly Deduction will be postponed until the next Monthly Anniversary on which the Accumulated Value less any Debt exceeds the amount of the postponed Monthly Deduction.
DEATH BENEFIT GUARANTEES. If the Monthly Anniversary is not a Valuation Day, the Monthly Deduction will be calculated using accumulation unit values determined at the end of the preceding Valuation Period. Deductions from Accumulated Value are made in the order listed above. The Mortality and Expense Risk Charge is taken from each subaccount of the Variable Account based on the accumulated value in the subaccount. The remainder of the Monthly Deduction is taken from the subaccounts and from the Fixed Account according to their Account Ratios on the Monthly Anniversary. With our approval, you may choose other allocations of the Monthly Deduction.
DEATH BENEFIT GUARANTEES. Deductions from Accumulated Value are made in the order listed above. The Mortality and Expense Risk Charge is taken from each subaccount of the Variable Account based on the accumulated value in the subaccount. The remainder of the Monthly Deduction is taken from the subaccounts and from the Fixed Account according to their Account Ratios on the Monthly Anniversary. With our approval, you may choose other allocations of the Monthly Deduction.