Intermediate Death Benefits Clause Samples

Intermediate Death Benefits. The Policy includes a rider providing for payment to the Owner of certain proceeds upon the death of the first to die of the Insureds. Any such proceeds as may be collected by the Owner upon the death of the first to die of the Insureds pursuant to such rider shall be applied by the Owner annually to pay to the Insurer the difference between (a) the lower of (i) the "P.S. 38 rates" set forth by the Internal Revenue Service, or any other table of rates promulgated by the Internal Revenue Service as a substitute therefor, or (ii) if allowed by the Internal Revenue Service, the Insurer's two-lives cost of insurance rate, as provided under the Insurer's published premium rate tables for one-year term insurance available to all standard risks prescribed for those purposes ("the P.S. 38 alternate rate"), and (b) the lower of (i) the "Table 2001 rates" set forth by the Internal Revenue Service, or any other table of rates promulgated by the Internal Revenue Service as a substitute therefor, or (ii) if allowed by the Internal Revenue Service, the Insurer's one-life cost of insurance rate, as provided under the Insurer's published premium rate tables for one-year term insurance available to all standard risks prescribed for those purposes ("the Table 2001 alternate rate"). If the amount of proceeds collected by the Owner under such rider shall be insufficient to pay the entire amount of the difference as determined above, the survivor of the Insureds, at his or her option, may pay the balance of such difference directly to the Insurer, or the Company.