SPECIFIED AMOUNT DECREASES Clause Samples
The "Specified Amount Decreases" clause defines how and when the principal or coverage amount under a contract or policy will be reduced over time. Typically, this clause outlines a schedule or specific events that trigger a decrease, such as reaching certain policy anniversaries or upon the occurrence of predefined milestones. Its core practical function is to provide predictability and transparency regarding future obligations or benefits, ensuring both parties understand how the specified amount will change and helping to manage expectations and financial planning.
SPECIFIED AMOUNT DECREASES. At any time after the first policy year, you may request a decrease in the Specified Amount. Any decrease will be effective on the Monthly Anniversary Day on or next following our receipt of your request unless you request a different date. Any such decrease shall reduce insurance in the following order: