Increases in the Specified Amount Clause Samples
The "Increases in the Specified Amount" clause defines the conditions and procedures under which the amount of coverage or principal specified in an agreement, such as an insurance policy or loan, can be increased. Typically, this clause outlines the requirements for requesting an increase, such as submitting a formal application, providing evidence of insurability, or meeting certain financial criteria. Its core practical function is to provide a clear and structured process for parties to adjust the specified amount upward, ensuring both flexibility for the policyholder or borrower and risk management for the issuer or lender.
Increases in the Specified Amount. A request for an increase in the Specified Amount will be subject to the following requirements:
Increases in the Specified Amount. A request for an increase in the Specified Amount will be subject to the following requirements: 1) you must submit an application satisfactory to us; 2) you must submit evidence of insurability satisfactory to us; 3) the increased Monthly Deduction will not cause the contract to lapse, as described in Section 5.8, Grace Period and Contract Lapse, as of the effective date of the increase; and 4) any increase may only be made prior to the Contract Anniversary when the Insured attains Age 80 and will be subject to our issue rules and limits at the time of the application. After an increase, additional surrender charges and an increase to the Monthly Deduction will apply. We will send you an updated surrender charge schedule for the increase. A new Guaranteed Monthly Premium will be applicable during the remainder of the Guaranteed Payment Period. We will send you current contract data after an increase in the Specified Amount.