PREMIUM SUSPENSION. A policy qualifies for premium suspension if at the end of the grace period: o the Excess Amount as of 25 days prior to the previous policy anniversary is greater than or equal to one year's minimum premium plus one year's premium for any additional benefits; o the Company determines that the Policy Value 25 days prior to the previous policy anniversary is greater than the sum of (a) plus (b) where: (a) is the net single premium on that anniversary for the Insurance Amount. This net single premium will be calculated using the basis of values for premium suspension shown on page 8; and (b) is the present value of charges for premium suspension for all future years. The present value will be calculated using: o amounts which the Company is then charging for premium suspension; and o the basis of values for premium suspension shown on page 8; and o no withdrawals have been made after a date 25 days prior to the previous policy anniversary. If a policy qualifies for premium suspension: o the scheduled premium otherwise currently due does not need to be paid; and o the policy will not terminate because of the failure to pay the premium. The Owner may pay unscheduled additional premiums as provided under Section 4.3. While premiums are being suspended, contract charges will be deducted from the Policy Value on each policy anniversary, subject to the maximum charges shown on page 4. If the premium frequency is other than annual, a deduction will be made from Policy Value to pay a premium for the remainder of the policy year and the premium frequency will be changed to annual. The payment of premiums must resume as of a policy anniversary if either: o the Excess Amount as of 25 days prior to a policy anniversary is less than the sum of one year's minimum premium plus one year's premium for any additional benefits; or o the Owner elects to end premium suspension by written request sent to the Home Office. If a withdrawal of Policy Value is made, premiums will no longer be suspended unless the policy requalifies for premium suspension as of the next policy anniversary.
Appears in 4 contracts
Samples: Variable Whole Life Policy (Northwestern Mutual Variable Life Account), Variable Whole Life Insurance Policy (Northwestern Mutual Variable Life Account), Variable Whole Life Policy (Northwestern Mutual Variable Life Account)
PREMIUM SUSPENSION. A policy qualifies for premium suspension if at the end of the grace period: o . the Excess Amount as of 25 days prior to the previous policy anniversary is greater than or equal to one year's minimum premium plus one year's premium for any additional additional! benefits; o . the Company determines that the Policy Value 25 days prior to the previous policy anniversary is greater than the sum of (a) plus (b) where:
: (a) is the net single premium on that anniversary for the Insurance Amount. This net single premium will be calculated using the basis of values for premium suspension shown on page 8; and
and (b) is the present value of charges for premium suspension for all future years. The present value will be calculated using: o . amounts which the Company is then charging for premium suspension; and o . the basis of values for premium suspension shown on page 8; and o . no withdrawals have been made after a date 25 days prior to the previous policy anniversary. If a policy qualifies for premium suspension: o . the scheduled premium otherwise currently due does not need to be paid; and o . the policy will not terminate because of the failure to pay the premium. The Owner may pay unscheduled additional premiums as provided under Section 4.3. While premiums are being suspended, contract charges will be deducted from the Policy Value on each policy anniversary, subject to the maximum charges shown on page 4. If the premium frequency is other than annual, a deduction will be made from Policy Value to pay a premium for the remainder of the policy year and the premium frequency will be changed to annual. The payment of premiums must resume as of a policy anniversary if either: o . the Excess Amount as of 25 days prior to a policy anniversary is less than the sum of one year's minimum premium plus one year's premium for any additional benefits; or o . the Owner elects to end premium suspension by written request sent to the Home Office. If a withdrawal of Policy Value is made, premiums will no longer be suspended unless the policy requalifies for premium suspension as of the next policy anniversary.
Appears in 1 contract
