Common use of POLICY VALUE Clause in Contracts

POLICY VALUE. On the Policy Date, the Policy Value is equal to the net annual policy premium plus any net unscheduled additional premium credited to Policy Value on the Policy Date, less the cost of insurance charge. On any day after that, the Policy Value is equal to what it was on the previous day plus these items: o any increase due to investment results of all amounts invested in all Divisions for the Policy Value; o interest on the Policy Value's share of policy debt at an annual rate equal to the loan interest rate less a charge by the Company for expenses and taxes; o on each policy anniversary, if the premium due is paid within the grace period, the net annual policy premium; o any net unscheduled additional premium used to increase Policy Value credited that day; o any policy dividend payable on that day directed to increase Policy Value; and o any amounts transferred to Policy Value from variable paid-up additional insurance; and minus any of these items applicable on that day: o any decrease due to investment results of all amounts invested in all Divisions for the Policy Value;