Common use of Withdrawal Charge Free Amount Clause in Contracts

Withdrawal Charge Free Amount. If the Accumulation Value of the contract is at least $10,000 on the most recent contract anniversary preceding a withdrawal under Section 3.5, then the amount withdrawn will be taken first from any eligible portion of the Accumulation Value of the contract that exceeds the total of Net Purchase Payments paid. For each Contract Year, the amount eligible for the Withdrawal Charge Free Amount is the lesser of the following: • the excess of the Accumulation Value of the contract on the effective date of the withdrawal over the total of Net Purchase Payments paid up to the effective date of the withdrawal; and • 10% of the Accumulation Value of the contract on the most recent contract anniversary preceding the withdrawal. Order Of Withdrawal. A withdrawal will be taken from the contract in the following order: • first, from the Withdrawal Charge Free Amount, if any; • next, from the Net Purchase Payments in the order that produces the lowest Withdrawal Charge; and • last, from any remaining amount by which the Accumulation Value of the contract exceeds the total of Net Purchase Payments.