EXHIBIT 1.A.(13)(h)
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RIDER FOR TERM INSURANCE BENEFIT ON LIFE OF
INSURED SPOUSE--DECREASING AMOUNT
This benefit is a part of this contract only if it is listed on a contract data
page.
BENEFIT
We will pay an amount under this benefit if we receive due proof that the
insured spouse died: (1) in the term period for the benefit; and (2) while this
contract is in force and not in default past the last day of the grace period.
But our payment is subject to all the provisions of this rider and of the rest
of this contract. The phrase insured spouse means the Insured's spouse named in
the application for this contract.
We show the Initial Amount of this benefit on a contract data page. We also show
the term period for the benefit there. The term period starts on the contract
date. The anniversary at the end of the term period is part of that period.
AMOUNTS PAYABLE
The amount we will pay depends on when the death of the insured spouse occurs.
In the Table of Amounts of Insurance on a contract data page we show the amount
we will pay if death occurs in a given contract year.
BENEFIT PREMIUMS AND CHARGES
We show the premiums for this benefit in the Schedule of Premiums in the
contract data pages. From each premium payment, we make the deductions shown
under Schedule of Deductions from Premium Payments in these pages and the
balance is the invested premium amount which is added to the contract fund. The
monthly charge for this benefit is deducted on each monthly date from the
contract fund. The amount of that charge is included in the Schedule of Monthly
Deductions from the contract fund.
Benefit premiums and monthly charges stop on the earliest of: (1) the death of
the Insured, (2) the death of the insured spouse, and (3) the anniversary at the
end of the term period.
PAID-UP INSURANCE
PAID-UP INSURANCE ON LIFE OF INSURED SPOUSE
If the Insured dies in the term period for this benefit while this contract is
in force and not in default past the last day of the grace period and while the
insured spouse is living, the insurance on the life of the insured spouse under
the benefit will become paid-up term insurance. While the paid-up insurance is
in effect, the contract will remain in force until the end of the term period
for this benefit. The paid-up insurance will have cash values but no loan value.
If this benefit becomes paid-up, it may be surrendered for its net cash value.
This will be the net value on the date of surrender of the paid-up insurance
plus any dividend credits. But, within 30 days after a contract anniversary, the
net cash value will not be less than it was on that anniversary. We base this
net cash value on the insured spouse's age and sex. The insured spouse's age at
any time will be his or her age last birthday on the contract date plus the
length of time since that date. We use the Commissioners 1980 Standard Ordinary
Mortality Table. We use continuous functions based on age last birthday. We use
an effective interest rate of 4% a year.
We will usually pay any cash value promptly. But we have the right to postpone
paying it for up to six months. If we do so for more than 30 days, we will pay
interest at the rate of 3% a year.
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CONVERSION TO ANOTHER PLAN OF INSURANCE
RIGHT TO CONVERT
While the Insured is living, you may convert this benefit to a new contract of
life insurance on the life of the insured spouse. You will not have to prove
that the insured spouse is insurable.
CONDITIONS
You must ask for the conversion in a form that meets our needs, while this
contract is in force and not in default past the last day of the grace period,
and at least five years before the end of the term period for this benefit.
The new contract will not take effect unless the premium for it is paid while
the insured spouse is living and within 31 days after its contract date. If the
premium is paid as we state, it will be deemed that the new contract took effect
on its contract date and that this benefit ended just before that date.
PREMIUM CREDIT
If we receive your request for conversion before the fifth anniversary of this
contract, we will allow a premium credit. Upon conversion to a new contract with
scheduled premiums, we will allow a credit, as described below, on each premium
that is due or scheduled for payment during the first year of the new contract.
Upon conversion to a new contract without scheduled premiums, we will allow a
credit as of the contract date provided you pay any required minimum initial
premium for the new contract.
If this benefit has been in force for at least one year on the contract date of
the new contract, we will allow the full credit described below. If this benefit
has been in force for less than one year as of that date, the credit will be
reduced on a pro-rata basis taking into consideration the portion of a year for
which this benefit has then been in force.
The full credit is equal to the premiums for the term insurance being converted
that were due, on the premium mode in effect at the time of conversion, during
the twelve months preceding the date of the new contract. Extra premiums or
charges for extra risks or extra benefits other than a waiver benefit are not
considered in determining this credit.
If the new contract has scheduled premiums, we will reduce each premium due or
scheduled for payment in the first year of the new contract to consider either
the full or reduced credit, as appropriate. If more than one premium is due or
scheduled for payment, we will apportion any credit between them. If the new
contract does not have scheduled premiums, we will pay either the full or
reduced credit, as appropriate, into the new contract as of the contract date
provided you pay any required minimum initial premium for the new contract.
CONTRACT DATE
If this contract is not in default, you may choose any contract date for the new
contract that is not more than 31 days after nor more than 31 days before the
date we receive your request, and not less than five years before the end of the
term period for this benefit. If this contract is in default but not past the
last day of the grace period, the contract date for the new contract will be the
date on which this contract went into default.
CONTRACT SPECIFICATIONS
The new contract will be in the rating class we show for this benefit on a
contract data page. We will set the issue age, premiums and charges for the new
contract in accordance with our regular rules in use on its contract date.
Except as we state in the next sentence, the new contract may be any life or
endowment policy we regularly issue on its contract date for the same rating
class, amount, issue age and sex. It may not be: a single-premium contract; one
that insures anyone in addition to the Insured; one that includes or provides
for term insurance, other than extended insurance; one with premiums that
increase after a stated time, if its first premium is less than 80% of any later
premium; or one with any benefit other than the basic insurance benefit and the
waiver benefit we refer to below. A waiver benefit may either waive or pay
premiums in the event of the Insuredos total disability.
The basic amount of the new contract may be any amount you ask for as long as it
is at least $10,000 and not more than 80% of the amount we would have paid under
this benefit if the Insured had died just before the contract date of the new
contract. (Since $10,000 is 80% of $12,500, the amount we would have paid must
be at least $12,500 for conversion to be possible.) If the amount you want is
smaller than the smallest amount we would regularly issue on the plan you want,
we will issue a new contract for as low as $10,000 on the Life Paid Up at Age 85
plan if you ask us to.
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Even though this contract does not have a waiver benefit on the life of an
insured spouse, we will include a waiver benefit in the new contract if its
premium period runs to at least the Insured's attained age 85 and if we would
include a waiver benefit in other contracts like the new one.
We will not waive or pay any premium under the new contract unless it has a
waiver benefit, even if we have waived premiums under this contract due to the
Insuredos total disability. And we will not waive or pay any premium under the
new contract unless the disability started on or after its contract date.
Any waiver benefit in the new contract will be the same one, with the same
provisions, that we put in other contracts like it on its contract date. In any
of these paragraphs, when we refer to other contracts, we mean contracts we
would regularly issue on the same plan as the new contract and for the same
rating class, amount, issue age and sex.
MISCELLANEOUS
CHANGES
You may be able to have this benefit changed to a new contract of life insurance
other than in accordance with the requirements for conversion that we state
above. But any change may be made only if we consent, and will be subject to
conditions and charges that are then determined.
OWNERSHIP
While any insurance under this benefit is in force after the Insured's death,
the insured spouse will be the owner of the contract and will be entitled to any
contract benefit and value and the exercise of any right and privilege granted
by the contract or by us. But any insurance payable upon the Insured's death
will be payable to the beneficiary for that insurance.
BENEFICIARY
The word beneficiary where we use it in this contract without qualification
means the beneficiary for insurance payable upon the death of the Insured.
On the contract date, unless we issue the contract with an endorsement that
states otherwise, the beneficiary for insurance payable upon the death of the
insured spouse will be the Insured if living, otherwise the estate of the
insured spouse.
You may change the beneficiary for insurance payable upon the death of the
insured spouse. The request must be in a form that meets our needs. It will take
effect only when we file it; this will be after you send us the contract, if we
require it to issue an endorsement. Then any previous beneficiary's interest in
such insurance will end as of the date of the request. It will end then even if
the insured spouse is not living when we file the request. Any beneficiary's
interest is subject to the rights of any assignee we know of.
When a beneficiary is designated, any relationship shown is to the Insured,
unless otherwise stated.
MISSTATEMENT OF AGE OR SEX
If the insured spouse's stated age or sex or both are not correct, we will
change each benefit and any amount payable to what the premium would have bought
for the correct age and sex.
The Schedule of Premiums may show that premiums change or stop on a certain
date. We may have used that date because the insured spouse would attain a
certain age on that date. If we find that the issue age for the insured spouse
was wrong, we will correct that date.
SUICIDE EXCLUSION
If the insured spouse, whether sane or insane, dies by suicide within the period
which we state in the Suicide Exclusion under Death Benefits provision, we will
not pay the amount we describe under Benefit above. Instead, we will pay no more
than the sum of the premiums paid for this benefit. We will make that payment in
one sum.
REINSTATEMENT
If this contract is reinstated, it will not include the insurance that we
provide under this benefit on the life of the insured spouse unless you prove to
us that the insured spouse is insurable for the benefit.
INCONTESTABILITY
Except for non-payment of premium, we will not contest this benefit after it has
been in force during the insured spouse's lifetime for two years from the issue
date.
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TERMINATION OF BENEFIT
This benefit will end on the earliest of:
1. the end of the last day of the grace period if the contract is in default;
it will not continue if either extended insurance or reduced paid-up
insurance takes effect;
2. the end of the last day before the contract date of any other contract to
which the benefit is converted or changed;
3. the date the contract is surrendered under its Cash Value Option, or the
paid-up insurance, if any, under the benefit is surrendered;
4. the end of its term period; and
5. the date the contract ends for any other reason.
Further, if you ask us in a form that meets our needs, we will cancel the
benefit as of the first monthly date on or after the date we receive your
request. Contract premiums and monthly charges due then and later will be
reduced accordingly.
THIS SUPPLEMENTARY BENEFIT RIDER ATTACHED TO THIS CONTRACT ON THE CONTRACT DATE
The Prudential Insurance Company of America
By /s/ SPECIMEN
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Secretary
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