Systematic Distribution Program Sample Clauses
A Systematic Distribution Program clause establishes a structured method for distributing payments or assets from an account or investment over a set period. Typically, this clause outlines the frequency, amount, and conditions under which distributions are made, such as monthly withdrawals from a retirement account or regular dividend payments. Its core practical function is to provide predictability and discipline in the disbursement process, helping beneficiaries or account holders manage funds efficiently and avoid the risks associated with irregular or lump-sum withdrawals.
Systematic Distribution Program is a program of periodic distribution of policy values that we designate as a Systematic Distribution Program. We reserve the right to discontinue such a program at any time. The program includes periodic distribution to you of a portion of the policy’s Accumulated Value through policy loans and withdrawals while the Insured is alive and the policy is In Force. Contact the Company for details of how this program works.