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Common use of Death Benefit Value Clause in Contracts

Death Benefit Value. The Death Benefit Value is the amount that is available as a Death Benefit under this Contract. It is equal to the greater of: 1) the Account Value on the date that the Death Benefit Value is determined; or 2) the Purchase Payments, reduced proportionately for each withdrawal, including withdrawals to pay rider charges, but not including amounts applied to pay Early Withdrawal Charges. The proportionate reduction for withdrawals is based on the amount of the withdrawal as a percentage of the Account Value immediately before of the withdrawal. In either case, the Death Benefit Value is reduced by: 1) rider charges not previously deducted; and 2) premium tax or other taxes not previously deducted. For this purpose, the date that the Death Benefit Value is determined is the earlier of: 1) the date that we have received both proof of death and a Request in Good Order with instructions as to the form of Death Benefit; or 2) the first anniversary of the date of death. Each Strategy earns interest or is adjusted for Vested Gain or Loss based on the rules that apply to that Strategy. The rules for each Strategy are set out in an endorsement to this Contract. The Purchase Payment Account earns interest daily at an annual effective rate equal to [1%] per year. An amount held under this Contract stops earning interest or being adjusted for Vested Gain or Loss after the earliest of: 1) the Annuity Payout Initiation Date; 2) the date that the Death Benefit Value is determined; or 3) the date on which the amount is withdrawn or this Contract is surrendered. A Crediting Strategy is a specified method by which interest or gain or loss is calculated for a Term. The initial Crediting Strategies are set out on the Contract Specifications page. The interest rates, maximum gains, participation rates, minimum and maximum allocations, or other variable factors in effect for a given Crediting Strategy may vary from one Term to the next. At the end of a Term, we reserve the right to eliminate a particular Crediting Strategy at our discretion. Each Purchase Payment is applied to the Purchase Payment Account upon receipt by us. On each Strategy Application Date, we apply the then current balance of the Purchase Payment Account to the Crediting Strategies you have selected. Your selection must be made by a Request in Good Order. The Strategy Application Dates and your initial selection are set out on the Contract Specifications page. Your selection continues to apply until changed by a Request in Good Order.

Appears in 4 contracts

Samples: Individual Deferred Annuity Contract (Great American Life Insurance Co), Individual Deferred Annuity Contract (Great American Life Insurance Co), Individual Deferred Annuity Contract (Great American Life Insurance Co)