Death Benefit Payment Options Clause Samples
Death Benefit Payment Options. If death occurs during the Accumulation Phase, a Beneficiary must request that the Death Benefit be paid by one of the payment options below or with our written agreement under a payment option other than Option A, Option B or Option C listed below. We do not deduct the Contract Maintenance Charge under these payment options. Option A - A lump sum payment of the Death Benefit. We deduct the final Product Fee, if applicable, before calculating the Death Benefit. Option B - Deferral of payment of the Death Benefit for up to five years from the date of the death of any Owner. During the deferral period, the Beneficiary can make transfers on an Index Anniversary within their portion of the contract among the Index Options. At the end of the fifth year, any remaining Death Benefit is paid in a lump sum. If you select Option B, we continue to assess the Product Fee shown on the Contract Schedule, if applicable. Option C - If the Beneficiary is an individual, payment of the Death Benefit as Annuity Payments under Annuity Options A, B, or C paid over the lifetime of the Beneficiary or the guaranteed period as applicable. We deduct the final Product Fee, if applicable, before calculating Annuity Payments. For purposes of this Option C, Annuity Payments do not have to begin on an Index Anniversary. With our written consent, other options may be available for payment over a period not extending beyond the life expectancy of the Beneficiary under which we continue to assess the Product Fee shown on the Contract Schedule. Any Beneficiary’s portion of the Death Benefit not applied to Annuity Payments under an Annuity Option within one year of the date of the Owner’s death must be distributed within five years of the date of death. If a Beneficiary requests a lump sum payment, we pay the amount from the Variable Account within seven days of receipt of a Valid Claim from the Beneficiary, unless the Suspension of Payments or Transfers provision in this contract is in effect. In cases of multiple Beneficiaries, we will continue to assess the Product Fee shown on the Contract Schedule, if applicable, after receiving the first Valid Claim from any one Beneficiary until there has been a complete distribution of the Death Benefit.
Death Benefit Payment Options. Except as provided in Section 7.1.4, if an Owner dies during the Accumulation Period, the Beneficiary must receive his/her respective Death Benefit under one of the following payment options: OPTION 1 - payment of the Death Benefit in a lump sum within five years of the date of such Owner's death; or OPTION 2 - payment of the entire Death Benefit within five years of the date of such Owner's death; or OPTION 3 - payment of the Death Benefit under an Annuity Option over the lifetime of such Beneficiary, or over a period that does not exceed the life expectancy, as defined by Internal Revenue Service regulations, of such Beneficiary, with payments starting within one year of the date of death of such Owner. This option is not available if the Beneficiary is a non-natural person. If We do not receive Due Proof of Death by the end of the Death Benefit Payment Election Period shown on the Contract Schedule, We will automatically apply the Default Death Benefit Payment Option shown on the Contract Schedule.
Death Benefit Payment Options. If death occurs during the Accumulation Phase, a Beneficiary must request that the Death Benefit be paid by one of the payment options below or with our written agreement under a payment option other than Option A, Option B or Option C listed below. We do not deduct the Contract Maintenance Charge under these payment options. Option A - A lump sum payment of the Death Benefit. Option B - Deferral of payment of the Death Benefit for up to five years from the date of the death of any Owner. During the deferral period, the Beneficiary can make transfers within their portion of the contract among the Allocation Options. At the end of the fifth year, any remaining Death Benefit is paid in a lump sum. If you select Option B, we continue to assess the Mortality and Expense Risk Charge shown on the Contract Schedule, if applicable, and the Transfer Fee shown on the Contract Schedule.
Death Benefit Payment Options. If the Owner has not previously designated a Death Benefit payment option, a Beneficiary must request that the Death Benefit be paid by one of the payment options below. We do not deduct the Contract Maintenance Charge under these payment options. Option A - A lump sum payment of the Death Benefit. Option B - Deferral of payment of the Death Benefit for up to five years from the date of the death of any Owner. During the deferral period, the Beneficiary can make transfers within their portion of the contract among the Investment Options. At the end of the fifth year, any remaining Death Benefit is paid in a lump sum. Option C - If the Beneficiary is an individual, payment of the Death Benefit as Annuity Payments under an Annuity Option over the lifetime of the Beneficiary, or over a period not extending beyond the life expectancy of the Beneficiary. Distribution must begin within one year of the date of death of any Owner. Any Beneficiary’s portion of the Death Benefit not applied to Annuity Payments under an Annuity Option within one year of the date of the Owner’s death must be distributed within five years of the date of death. If a Beneficiary requests a lump sum payment, we pay the amount from the Variable Account within seven days of receipt of the first Authorized Request of the Death Benefit payment option, due proof of death, and any necessary governmental forms from any one Beneficiary, unless the Suspension of Payments or Transfers section in this contract is in effect.
Death Benefit Payment Options. The Death Benefit proceeds may be paid in a lump sum, under a Settlement Option as set forth in the Settlement Options section, or in any other way agreeable to you and us. Before the Insured dies, you may choose how the Death Benefit proceeds are to be paid. If you have not made a choice before the Insured dies, the beneficiary may choose how the Death Benefit proceeds are paid. When part or all of the Death Benefit proceeds are paid in a lump sum, we will include interest from the date of death to the payment date. Interest will accrue: