GUARANTEED DEATH BENEFIT INTEREST RATE Clause Samples
The Guaranteed Death Benefit Interest Rate clause establishes the minimum interest rate that will be applied to the death benefit portion of a life insurance policy. In practice, this means that regardless of market fluctuations or changes in the insurer’s investment returns, the death benefit will accrue interest at no less than the specified guaranteed rate. This ensures that beneficiaries receive a predictable and reliable payout, protecting them from the risk of diminished benefits due to unfavorable economic conditions.
GUARANTEED DEATH BENEFIT INTEREST RATE. The Guaranteed Death Benefit Interest Rate is [7%] compounded annually, except:
GUARANTEED DEATH BENEFIT INTEREST RATE. The Guaranteed Death Benefit Interest Rate is [7%] compounded annually, except: (a) For any portion of the Guaranteed Death Benefit attributable to Accumulation Value allocated to Special Funds, the Guaranteed Death Benefit Interest Rate is the lesser of: (1) [7%] (compounded annually) and (2) the interest rate, positive or negative, providing a yield on the Guaranteed Death Benefit for Special Funds equal to the net return for the current valuation period on the Accumulation Value allocated to Special Funds; and (b) For any valuation period ending after the contract anniversary on which the Owner attains age [80], or after the Maximum Guaranteed Death Benefit has been reached, the Guaranteed Death Benefit Interest Rate is [0%]. GA-RA-1044-1 SPECIAL FUNDS Where used in this Endorsement the Special Funds are [the Liquid Assets Division, the Limited Maturity Bond Division, the Fixed Allocations, and the Guaranteed Interest Division]. The Company reserves the right to classify newly available divisions as Special Funds from the date of their availability to the Owner. The Company may reclassify an existing division as a Special Fund or remove such designation. Such reclassification shall be made with 30 days notice to contract owners, and will apply to amounts transferred or otherwise added to such division after the date of change. MAXIMUM GUARANTEED DEATH BENEFIT The Maximum Guaranteed Death Benefit is equal to [three] times premium paid, plus [three] times any Credits, reduced by the amount of any Special and Prorata Partial Withdrawal Adjustments. Any addition due to spousal continuation will not affect the Maximum Guaranteed Death Benefit or the Guaranteed Death Benefit.
GUARANTEED DEATH BENEFIT INTEREST RATE. The annual rate at which the Guaranteed Death Benefit is calculated.
GUARANTEED DEATH BENEFIT INTEREST RATE. The Guaranteed Death Benefit Interest Rate is 5%, except for any valuation period ending after the Contract Anniversary on which the Owner attains age 90, or after the Maximum Guaranteed Death Benefit has been reached, the Guaranteed Death Benefit Interest Rate is 0%. Maximum Guaranteed Death Benefit The Maximum Guaranteed Death Benefit is equal to three times premium paid plus Initial Credits, reduced by the amount of any Partial Withdrawal Adjustments. The Maximum Guaranteed Death Benefit is allocated proportionally based on the Contract's allocation to Special and non-Special funds. Transfers and withdrawals will affect the allocation of the Maximum Guaranteed Death Benefit at the same proportion among the Special and non-Special Funds that they bear to the Accumulation Value transferred or withdrawn. Any addition due to spousal continuation will not affect the Maximum Guaranteed Death Benefit or the Guaranteed Death Benefit Base. Prorata Partial Withdrawal Adjustments For any partial withdrawal, the Death Benefit components will be reduced by Prorata Partial Withdrawal Adjustments The Prorata Partial Withdrawal Adjustment to a Death Benefit component is equal to (1) divided by (2), multiplied by (3), where: (1) is the Accumulation Value withdrawn; (2) is the Accumulation Value immediately prior to withdrawal; and (3) is the amount of the applicable Death Benefit component immediately prior to the withdrawal. Separate adjustments will apply to the amounts in the Special and non-Special Funds.
GUARANTEED DEATH BENEFIT INTEREST RATE. The Guaranteed Death Benefit Interest Rate is [7%] compounded annually, except: (a) For any portion of the Guaranteed Death Benefit attributable to Accumulation Value allocated to Special Funds, the Guaranteed Death Benefit Interest Rate is the lesser of: (1) [7%] (compounded annually) and (2) the interest rate, positive or negative, providing a yield on the Guaranteed Death Benefit for Special Funds equal to the net return for the current valuation period on the Accumulation Value allocated to Special Funds; and (b) For any valuation period ending after the contract anniversary on which the Owner attains age [80], or after the Maximum Guaranteed Death Benefit has been reached, the Guaranteed Death Benefit Interest Rate is [0%]. GA-IA-1059 3D2 THE SCHEDULE CONTRACT FACTS (continued) -------------------------------------------------------------------------- |--------------------------------------------------------------------------| | Annuitant Owner | | [▇▇▇▇▇▇ ▇. ▇▇▇] [▇▇▇▇ ▇. ▇▇▇] | |--------------------------------------------------------------------------| | Initial Premium Annuity Option Annuity Commencement Date| | [$10,000] [LIFE 10-YEAR CERTAIN] [JANUARY 1, 2053] | |--------------------------------------------------------------------------| | Separate Account(s) Contract Number | | [SEPARATE ACCOUNT B] [123456] | |--------------------------------------------------------------------------| SPECIAL FUNDS The Special Funds are [the Liquid Assets Division, the Limited Maturity Bond Division, the Fixed Allocations, and the Guaranteed Interest Division]. The Company reserves the right to classify newly available divisions as Special Funds from the date of their availability to the Owner. The Company may reclassify an existing division as a Special Fund or remove such designation. Such reclassification shall be made with 30 days notice to contract owners, and will apply to amounts transferred or otherwise added to such division after the date of change. MAXIMUM GUARANTEED DEATH BENEFIT The Maximum Guaranteed Death Benefit is equal to [three] times premium paid, reduced by the amount of any Special and Prorata Partial Withdrawal Adjustments. Any addition due to spousal continuation will not affect the Maximum Guaranteed Death Benefit or the Guaranteed Death Benefit.
GUARANTEED DEATH BENEFIT INTEREST RATE. The Guaranteed Death Benefit Interest Rate is 5%, except for any valuation period ending after the Contract Anniversary on which the Owner attains age 90, or after the Maximum Guaranteed Death Benefit has been reached, the Guaranteed Death Benefit Interest Rate is 0%.