Common use of Face Amount Decrease Clause in Contracts

Face Amount Decrease. You may request a decrease in the Total Face Amount of the Policy by providing a Written Request. A decrease in Total Face Amount is subject to each of these limits: · Only one requested decrease per Policy year is allowed; · A decrease during the first Policy year is not allowed; and · The Basic Face Amount remaining after a decrease must be at least equal to the Minimum Basic Face Amount Following Decrease shown in the Policy Specifications. The effective date of the decreased Face Amount will be the first Monthly Payment Date on or next following the date we approved your Written Request. Unless and until you specify otherwise by Written Request, any request for a decrease in Total Face Amount will not take effect if the requested change would cause the Policy to be classified as a Modified Endowment Contract under the Code in accordance with the Modified Endowment Contract Tax Status section of this Policy. We recommend you consult a qualified tax advisor before requesting a decrease in Total Face Amount of Coverage Layers as described below. Upon approval of any decrease, we will send you a Supplemental Schedule of Coverage to reflect the decrease. The request for a decrease in the Total Face Amount will be subject to the Guideline Premium Limit (if specified for your Policy) as defined in the Code. This may result in one or more refunds of premiums or required distributions of Accumulated Value in order to maintain compliance with such limit, in accordance with the Tax Qualification as Life Insurance section of this Policy. Such request will not be allowed to the extent we determine that any resulting Guideline Premium limit would cause an amount in excess of the Net Cash Surrender Value to be distributed from the Policy.

Face Amount Decrease. You may request a decrease in the Total Face Amount of the Policy policy by providing a Written Request. A decrease in Total Face Amount is subject to each of these limits: · • Only one requested decrease per Policy policy year is allowed; · . • A decrease during the first Policy policy year is not allowed; and · . • The Basic Face Amount remaining after a decrease must be at least equal to the Minimum Basic Face Amount Following Decrease shown in the Policy Specifications$10,000. The effective date of the decreased Face Amount will be the first Monthly Payment Date on or next following the date we approved your Written Request. Unless and until you specify otherwise by Written Request, any request for a decrease in Total Face Amount will not take effect if the requested change would cause the Policy policy to be classified as a Modified Endowment Contract under the Code in accordance with the Modified Endowment Contract Tax Status section of this PolicyCode. We recommend you consult a qualified your tax advisor before requesting a decrease in Total Face Amount of Coverage Layers as described below. Upon approval of any decrease, we will send you a Supplemental Schedule of Coverage to reflect the decrease. The request for a decrease in the Total Face Amount will be subject to the Guideline Premium Limit (if specified for your Policypolicy) as defined in the Code. This may result in one or more refunds of premiums or required distributions of Accumulated Value in order to maintain compliance with such limit, in accordance with the Tax Qualification as Life Insurance section of this Policypolicy. Such request will not be allowed to the extent we determine that any resulting Guideline Premium limit would cause an amount in excess of the Net Cash Surrender Value to be distributed from the Policypolicy.

Face Amount Decrease. You may request a decrease in the Total Face Amount of the Policy by providing a Written Request. A decrease in Total Face Amount is subject to each of these limits: · • Only one requested decrease per Policy year is allowed; · allowed • A decrease during the first Policy year is not allowed; and · allowed • The amount of the decrease must be at least $10,000 • The Basic Face Amount remaining after a decrease must be at least equal to the Minimum Basic $10,000 • The Total Face Amount Following Decrease shown in the Policy Specifications. remaining after a decrease must be at least $100,000 The effective date of the decreased Face Amount will be the first Monthly Payment Date on or next following the date we approved your Written Request. Unless and until you specify otherwise by Written Request, any request for a decrease in Total Face Amount will not take effect if the requested change would cause the Policy to be classified as a Modified Endowment Contract under the Code in accordance with the Modified Endowment Contract Tax Status section of this PolicyCode. We recommend you consult a qualified tax advisor before requesting a decrease in Total Face Amount of Coverage Layers as described below. Upon approval of any decrease, we will send you a Supplemental Schedule of Coverage to reflect the decrease. The request for a decrease in the Total Face Amount will be subject to the Guideline Premium Limit (if specified for your Policy) as defined in the Code. This may result in one or more refunds of premiums or required distributions of Accumulated Value in order to maintain compliance with such limit, in accordance with the Tax Qualification as Life Insurance section of this Policy. Such request will not be allowed to the extent we determine that any resulting Guideline Premium limit would cause an amount in excess of the Net Cash Surrender Value to be distributed from the Policy.

Face Amount Decrease. You may request a decrease in the Total Face Amount of the Policy by providing a Written Request. A decrease in Total Face Amount is , subject to each of these limits: · • Only one requested decrease per Policy policy year is allowed; · . • A decrease during the first Policy policy year is not allowed; and · . • The Basic amount of the decrease must be at least $10,000. • The Face Amount remaining after a decrease must be at least equal to $1000 and the Minimum Basic Total Face Amount Following Decrease shown in the Policy Specificationsremaining after a decrease must be at least $100,000. The effective date of the decreased Face Amount will be the first Monthly Payment Date on or next following the date we receive the Written Request and have approved your Written Request. Unless and until you specify otherwise by Written Request, any request for a decrease in Total Face Amount will not take effect if the requested change would cause the Policy to be classified as a Modified Endowment Contract under the Code in accordance with the Modified Endowment Contract Tax Status section of this Policyit. We recommend you consult a qualified your tax advisor before requesting a decrease in Total Face Amount of Coverage Layers as described belowAmount. Upon approval of any decrease, we will send you a Supplemental Schedule of Coverage to reflect Coverage, which will include the decreased Face Amount and the effective date of the decrease. If there are Coverage Layers with different effective dates, the Coverage Layers will be decreased or eliminated in the following order: • first, the most recent Coverage Layer; • next, other Coverage Layers, in the reverse order in which they arose; and • finally, the initial Coverage Layer. The request for a decrease in the Total Face Amount will be subject to the Guideline Premium Limit (if specified for applicable to your Policypolicy) as defined in the Code. This may result in one or more refunds of premiums or required distributions of Accumulated Value in order to maintain compliance with such limit, in accordance with the Tax Qualification as Life Insurance section of this Policyor both. Such request will not be allowed to the extent we determine that any the resulting Guideline Premium limit Limit would cause an amount in excess of the Net Cash Surrender Value to be distributed from the Policypolicy.

Face Amount Decrease. You may request a decrease in the Total Face Amount of the Policy by providing a Written Request. A decrease in Total Face Amount is subject to each of these limits: · • Only one requested decrease per Policy year is allowed; · . • A decrease during the first Policy year is not allowed; and · . • The Basic Face Amount remaining after a decrease must be at least equal to the Minimum Basic Face Amount Following Decrease shown in the Policy Specifications$10,000. The effective date of the decreased Face Amount will be the first Monthly Payment Date on or next following the date we approved your Written Request. Unless and until you specify otherwise by Written Request, any request for a decrease in Total Face Amount will not take effect if the requested change would cause the Policy to be classified as a Modified Endowment Contract under the Code in accordance with the Modified Endowment Contract Tax Status section of this Policy. We recommend you consult a qualified tax advisor before requesting a decrease in Total Face Amount of Coverage Layers as described below. Upon approval of any decrease, we will send you a Supplemental Schedule of Coverage to reflect the decrease. The request for a decrease in the Total Face Amount will be subject to the Guideline Premium Limit (if specified for your Policy) as defined in the Code. This may result in one or more refunds of premiums or required distributions of Accumulated Value in order to maintain compliance with such limit, in accordance with the Tax Qualification as Life Insurance section of this Policy. Such request will not be allowed to the extent we determine that any resulting Guideline Premium limit would cause an amount in excess of the Net Cash Surrender Value to be distributed from the Policy.