EXHIBIT 26(D)(16)
DEATH BENEFIT GUARANTEE FLEX AGREEMENT
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This agreement is a part of the policy to which it is attached and is subject
to all its terms and conditions. This agreement is effective as of the
agreement effective date shown on the policy data pages.
WHAT DOES THIS AGREEMENT PROVIDE?
This agreement provides that the policy will remain in force even if there is
no accumulation value to cover monthly charges, as long as the Death Benefit
Guarantee Flex Agreement (DBGA) value less any outstanding loans and any
accrued loan interest, is sufficient to cover any DBGA charges.
WHAT IS THE DBGA VALUE?
As of the date the initial premium is paid, the DBGA value is the DBGA net
premium paid multiplied by the corresponding DBGA account allocation factors.
On any day thereafter, the DBGA value is equal to:
(1)the DBGA value as of the prior day;
(2)plus interest, using the DBGA interest rate shown on the policy data
pages, earned since the prior day;
(3)plus any DBGA net premium applied since the prior day multiplied by the
corresponding DBGA account allocation factors;
(4)plus any increase in the DBGA value that results from transfers into an
account;
(5)plus any performance credit amount that has been added to the DBGA value
since the prior day;
(6)minus any DBGA Partial Surrender Amount;
(7)minus the DBGA Cost of Insurance and DBGA Policy Issue Charges assessed
against the DBGA value since the prior day;
(8)minus the Transaction, Cash Extra and Additional Agreement charges;
(9)minus any decrease in DBGA value that results from transfers out of an
account.
WHAT IS THE DBGA NET PREMIUM?
The DBGA net premium is the premium payment less the DBGA premium charge
assessed against that premium. The maximum DBGA premium charge is shown on your
policy data pages.
WHAT ARE THE DBGA ACCOUNT ALLOCATION FACTORS?
The DBGA account allocation factors are percentages we determine at policy
issue and cannot be changed. Certain designated accounts will have a higher
percentage than other accounts. The percentages for the designated accounts and
other accounts are shown on the policy data pages. These factors also apply to
transfers of accumulation value.
WILL MY ACCOUNT ALLOCATION ELECTIONS AFFECT MY DBGA VALUE?
Yes. Allocations to the designated accounts will have higher account allocation
factors and will result in higher DBGA net premium allocated to DBGA value.
HOW WILL I KNOW WHAT THE DESIGNATED ACCOUNTS ARE?
The initial policy confirmation will contain a list of the designated accounts.
CAN THE DESIGNATED ACCOUNTS BE CHANGED?
No. We cannot remove an account from the list of designated accounts. However,
we reserve the right to add additional accounts to the list of designated
accounts and reserve the right to substitute an account for another account in
the designated accounts list, subject to any substitution provisions in the
policy.
ARE THERE ACCUMULATION VALUE TRANSFER RESTRICTIONS OR PREMIUM ALLOCATION
LIMITATIONS?
No.
WILL TRANSFERS OF ACCUMULATION VALUE AFFECT THE DBGA VALUE?
The DBGA value may be affected if you transfer accumulation value among the
sub-accounts, fixed indexed accounts and the guaranteed interest account.
We will reduce the DBGA value by the amount of accumulation value transferred
out of an account multiplied by that account's corresponding DBGA account
allocation factor.
We will increase the DBGA value by the amount of accumulation value transferred
into an account multiplied by that account's corresponding DBGA account
allocation factor.
IS THERE A LIMITATION ON THE AMOUNT OF PREMIUM THAT MAY BE PAID WHEN THIS
AGREEMENT IS ADDED?
Yes. The amount of annual premium that may be paid into the policy when this
agreement is elected is limited to the DBGA annual premium limitation shown on
the policy data pages.
ICC15-20002 Death Benefit Guarantee
Flex Agreement Minnesota Life Insurance Company
WHAT IS THE PERFORMANCE CREDIT AMOUNT?
On each DBGA performance credit date the performance credit amount will be
equal to:
1. the accumulation value in the designated accounts multiplied by the DBGA
performance credit factor for designated accounts shown on the policy
data pages; plus
2. the accumulation value in all other accounts multiplied by the DBGA
performance credit factor for all other accounts shown on the policy
data pages; less
3. The DBGA value as of the close of business on the date prior to the DBGA
performance credit date.
If the performance credit amount is greater than zero, it is added to the DBGA
value on the DBGA performance credit date.
WHAT IS THE DBGA PERFORMANCE CREDIT DATE?
The DBGA performance credit date is the date shown on the policy data pages.
If the performance credit date is not a valuation date under the applicable
policy, we will use the accumulation values for designated and all other
accounts as of the next valuation date.
WHAT IS THE DBGA PARTIAL SURRENDER AMOUNT?
The DBGA Partial Surrender Amount is the greater of:
1. any partial surrender taken from the accumulation value; or
2. an amount equal to the DBGA value multiplied by the Partial Surrender
Amount, divided by the accumulation value.
WHAT ARE THE DBGA COST OF INSURANCE AND DBGA POLICY ISSUE CHARGES?
The DBGA Cost of Insurance and the DBGA Policy Issue Charges are charges we
take to provide the death benefit guarantee under this agreement. The maximum
charges are shown on the DBGA data page and apply to coverage layers at issue
and following face amount increases.
WHAT ARE THE TRANSACTION, CASH EXTRA AND ADDITIONAL AGREEMENT CHARGES?
The Transaction, Cash Extra, and Additional Agreement Charges assessed against
the DBGA value are the same as those assessed against the policy's accumulation
value unless otherwise noted on the DBGA data page. The charge for this
agreement is not assessed against the DBGA value.
WHAT EFFECT DOES THE DBGA VALUE HAVE ON THE ACCUMULATION VALUE?
The DBGA value has no effect on the accumulation value. The DBGA value is used
only for the purpose of determining whether the benefit under this agreement is
available. It does not represent any value that you can surrender or take a
loan against.
WHAT IF THE PREMIUMS OR CHARGES ARE BEING WAIVED?
For any month in which premiums are paid under a waiver agreement, the DBGA
value will be calculated using the premium paid under that waiver agreement.
For any month in which charges are waived under a waiver agreement, we will
waive the DBGA monthly charges.
WHAT IF THERE IS NO ACCUMULATION VALUE AND THE DBGA VALUE IS INSUFFICIENT TO
COVER CHARGES AGAINST THE DBGA VALUE?
If there is no accumulation value and the DBGA value, less the sum of any
policy loans and any unpaid policy loan interest, is insufficient to cover the
charges against the DBGA value, a 61-day grace period begins. Your policy will
remain in force during the grace period. We will send you and any assignee of
record, at the last known address, at least 31 days prior to the end of the
grace period, a written notice indicating the due date and the payment required
to keep your policy in force. If the required amount is not paid by the end of
the grace period, this agreement and the policy will terminate.
WHAT IS THE PAYMENT REQUIRED TO KEEP THIS AGREEMENT IN FORCE?
The payment required to keep this agreement in force after the grace period has
commenced is equal to three times the sum of all the base policy monthly
charges that were due at the beginning of the grace period, plus the premium
charge that would apply, plus any accrued loan interest through the end of the
grace period if a policy loan exists.
WHAT IS THE CHARGE FOR THIS AGREEMENT?
The monthly charge for this agreement is shown on the policy data pages.
WHEN WILL THIS AGREEMENT TERMINATE?
This agreement will terminate on the earliest of:
(1)the date the policy is surrendered or otherwise terminates; or
(2)the date we receive your written request to cancel this agreement; or
(3)the termination date of this agreement as shown on the policy data pages.
CAN YOU REINSTATE THIS AGREEMENT?
Yes. If this agreement was in force at the time the policy terminated, this
agreement may be reinstated subject to the reinstatement provisions of the
policy.
However, if you elected to cancel this agreement at any time, you may not
reinstate this agreement.
[/s/ Xxxx X. Xxxxxxxxxxx /s/ Xxxxxxxxxxx X. Xxxxxx
Secretary President]
