Common use of Face Amount Increase Clause in Contracts

Face Amount Increase. You may submit an application to increase the Face Amount. The older Insured must be no older than Age 90 and the Face Amount increase may not be less than $25,000. Your application must include Evidence of Insurability satisfactory to us and is subject to our approval. The effective date of the increased Face Amount will be the first Monthly Payment Date on or next following the date all required conditions are met or any other date you request and we approve. We reserve the right to limit Face Amount increases to one per policy year and the right to charge a fee to evaluate insurability, not to exceed $100 for each Insured to be evaluated. Upon approval of any such increase, we will send you a Supplemental Schedule of Coverage, which will include the following information: • the increased Face Amount and the effective date of the increase; • the Risk Classes for the increase; • the Maximum Monthly Cost of Insurance Rates applicable to the increase; • the Maximum Monthly Coverage Charge for the increase; and • if the Guideline Premium Test is used, the new Guideline Premiums. In addition, any Coverage Layer representing an increase in Basic Coverage will have an associated Surrender Charge. Calculation of the Surrender Charge for the Coverage Layer will be identical to that described in the Surrender Charge provision, but based on the values of the Surrender Charge factors on the effective date of the increase. The Supplemental Schedule of Coverage sent to you at the time of the increase will also contain the associated Surrender Charge factors. Decreases in the Surrender Charge for the Coverage Layer will be measured from the effective date of the Coverage Layer.

Face Amount Increase. You may submit an application to increase the Face Amount. The older Insured must be no older than Age 90 and the Face Amount increase may not be less than $25,000. Your application must include Evidence of Insurability satisfactory to us and is subject to our approval. The effective date of the increased Face Amount will be the first Monthly Payment Date on or next following the date all required conditions are met or any other date you request and we approve. We reserve the right to limit Face Amount increases to one per policy year and the right to charge a fee to evaluate insurability, not to exceed $100 for each Insured to be evaluatedevaluation. P09SE5 Upon approval of any such increase, we will send you a Supplemental Schedule of Coverage, which will include the following information: • the The increased Face Amount and the effective date of the increase; increase • the The Risk Classes Class for the increase; increase • the The Maximum Monthly Cost of Insurance Rates applicable to the increase; increase • the The Maximum Monthly Coverage Charge for the increase; and increase • if If the Guideline Premium Test is used, the new Guideline Premiums. Premiums In addition, any Coverage Layer representing an increase in Basic Coverage will have an associated Surrender Charge. Calculation of The elements used in calculating the Surrender Charge for such Coverage Layer are the Initial Amount, Level Period, Reduction Factor, and End Year for the Coverage Layer and will be identical to that described shown in the Surrender Charge provision, but based on the values of the Surrender Charge factors on the effective date of the increase. The a Supplemental Schedule of Coverage sent to you at the time of the increase will also contain the associated Surrender Charge factorsincrease. Decreases in the Surrender Charge The Level Period and End Year for the Coverage Layer will be are measured from the effective date of the Coverage Layer. During the Level Period of such Coverage Layer, the Surrender Charge is equal to the Initial Amount for the Coverage Layer. After the Level Period, the Surrender Charge for the Coverage Layer decreases on each Monthly Payment Date by one-twelfth of the Reduction Factor for the Coverage Layer until it becomes zero after the End Year for the Coverage Layer.

Face Amount Increase. The Insured must be Age 85 or less at the time for a request to increase Face Amount. You may must submit an application to for an increase the in Face Amount. The older Insured must be no older than Age 90 , and the Face Amount increase may not be less than $25,000. Your application must include Evidence of Insurability satisfactory to us and us. The increase may be for any Coverage Component or any combination of Coverage Components. The minimum increase amount for any combination of Coverage Components is subject to our approval$25,000. If approved, there will be a new Coverage Layer for any Coverage Component that is increased. The effective date of the increased new Coverage Layer will be the first Monthly Payment Date on or following the date all required conditions are met. Upon approval of any unscheduled increase in a Coverage Component, we will send you a Supplemental Schedule of Coverage, which will include the following information for any new Coverage Layer: • the Risk Class; • the effective date • the Guaranteed Maximum Monthly Cost of Insurance Rates • the Coverage Charge • the Surrender Charge • the amount of the increase and the total Face Amount after the increase; and • the new Guideline Premiums, if applicable. In addition to unscheduled requests to increase the Face Amount, any Additional Coverage may include planned increases in Face Amount approved by us in advance and not subject to new evidence of insurability. Any such change will be shown in the Policy Specifications or in a Supplemental Schedule of Coverage. Limits on Face Amount Increase — Also, an increase will not be allowed if there has been a prior elective decrease in Face Amount. Face Amount Decrease — You may submit a Written Request to decrease the Face Amount if there are one or more Coverage Layers eligible for decrease. A Coverage Layer is eligible for decrease on or after the fifth anniversary of its effective date. So long as other requirements described in this section are met, the effective date of the decreased Face Amount will be the first Monthly Payment Date on or next following the date all required conditions are met or any other date you request we receive the Written Request and we approvehave approved it. We reserve the right to limit You should consult your tax advisor before requesting a decrease in policy Face Amount increases to one per policy year and the right to charge a fee to evaluate insurability, not to exceed $100 for each Insured to be evaluatedAmount. Upon approval of any such increaseunscheduled decrease, we will send you a Supplemental Schedule of Coverage, which will include the following information: • the increased Face Amount and after the decrease; • the effective date of the decrease; and • the new Guideline Premiums if applicable. If there have been prior increases in Face Amount, any Coverage Layers that are eligible for decrease will be decreased or eliminated in the following order: • first, the most recent increase; • next, other increases, in the Risk Classes for the increase; • the Maximum Monthly Cost of Insurance Rates applicable to the increase; • the Maximum Monthly Coverage Charge for the increasereverse order in which they were applied; and • if finally, the original Face Amount. If any Coverage Layers to be decreased have the same effective date, they will be decreased or eliminated in the following order: • first, any Additional Coverage; • next, any ABR Coverage; and • finally, any Basic Coverage. The request for a decrease in the Face Amount will be subject to the Guideline Premium Test Limit (if applicable to your policy) as defined in the Code. This may result in a refund of premiums and/or the distribution of Accumulated Value in order to maintain compliance with such limit. Such request will not be allowed if the resulting Guideline Premium limit could cause an amount in excess of the Net Cash Surrender Value to be distributed from the policy. A decrease in Face Amount that may be required as a result of a Withdrawal or a Death Benefit Option change may occur any time, and is usednot subject to the prohibition on decreases during the first five policy years described earlier in this section. Unless you specify otherwise by Written Request, any request for a Face Amount decrease will not take effect if the requested change would cause the policy to be classified as a Modified Endowment Contract under the Code. Paid-Up Insurance — On each policy anniversary you have the option to use the Net Cash Surrender Value to purchase guaranteed fixed paid-up insurance on the life of the Insured. At the time of conversion, the new Guideline PremiumsNet Cash Surrender Value will be transferred to our general account. The amount of paid-up insurance is determined by applying the entire Net Cash Surrender Value as the net single premium based upon the Insured’s Age, Risk Class, the mortality table shown in the Policy Specifications, and minimum guaranteed interest rate used for the Fixed Options. If the amount of paid-up insurance so determined would exceed the death benefit of the policy immediately prior to purchase of the paid-up insurance, we will apply only a portion of the Net Cash Surrender Value to purchase paid-up insurance, and the remainder will be paid to you. In additionthis case, any Coverage Layer representing an increase in Basic Coverage we will have an associated determine the amount of paid-up insurance so that the paid-up insurance plus the Net Cash Surrender Charge. Calculation Value paid to you will equal the policy’s death benefit immediately prior to the purchase of the Surrender Charge for the Coverage Layer paid-up insurance. This policy and any riders attached to it will be identical to that described in the Surrender Charge provision, but based on the values of the Surrender Charge factors on the effective date of the increase. The Supplemental Schedule of Coverage sent to you terminate at the time of conversion. Such paid-up insurance may be surrendered at any time, with the increase will also contain cash surrender value being determined on the associated Surrender Charge factors. Decreases in the Surrender Charge for the Coverage Layer will be measured from the effective date of the Coverage Layersame basis.