Exhibit 4(n)
==== GOLDEN
======= AMERICAN GUARANTEED DEATH
=========== LIFE INSURANCE BENEFIT ENDORSEMENT
===== COMPANY
Golden American is a stock company domiciled in Delaware.
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The Contract to which this endorsement is attached is hereby
amended by replacing the applicable provision with the provisions
stated below as of the Contract Date. Where used in this
Endorsement the term Contract shall mean Certificate when this
Endorsement is attached to a Certificate. Where used in this
Endorsement, Owner, shall mean Certificateowner when this
Endorsement is attached to a Certificate.
The provisions of the Contract schedule dealing with death
benefits are replaced with the following:
DEATH BENEFIT
The Death Benefit is the greatest of (i) , (ii) , (iii), and (iv)
below, where:
(i) the Accumulation Value less any Credits applied within [12] months
of the date of death;
(ii) the lesser of (a) and (b) less any Credits applied within [12] months
of the date of death:
(a) the Guaranteed Death Benefit, and
(b) the Maximum Guaranteed Death Benefit;
(iii) the Cash Surrender Value;
(iv) the sum of premiums paid, reduced by Prorata Partial Withdrawal
Adjustment(s) for Accumulation Value withdrawn, and
(v) the Alternate Death Benefit less any Credits applied within [12]
months of the date of death.
GUARANTEED DEATH BENEFIT
On the Contract Date, the Guaranteed Death Benefit is the initial
premium plus any Credit if applicable. On subsequent Valuation
Dates, the guaranteed Death Benefit is calculated as follows:
(1) Start with the Guaranteed Death Benefit on the prior
valuation date;
(2) Calculate interest on (1) for the current valuation period
at the Guaranteed Death Benefit Interest Rate;
(3) Add (1) and (2);
(4) Add to (3) any additional premiums paid (plus any Credit)
during the current valuation period;
(5) Subtract from (4) the amount of any Special Partial
Withdrawal Adjustments and Prorata Partial Withdrawal Adjustments
for any partial withdrawals made during the current valuation
period.
Transfer of Accumulation Value to or from Special Funds will
apply to the Guaranteed Death Benefit in a prorata basis.
GUARANTEED DEATH BENEFIT INTEREST RATE
The Guaranteed Death Benefit Interest Rate is [7%] compounded
annually, except:
(a) For any portion of the Guaranteed Death Benefit attributable
to Accumulation Value allocated to Special Funds, the Guaranteed
Death Benefit Interest Rate is the lesser of: (1) [7%]
(compounded annually) and (2) the interest rate, positive or
negative, providing a yield on the Guaranteed Death Benefit for
Special Funds equal to the net return for the current valuation
period on the Accumulation Value allocated to Special Funds; and
(b) For any valuation period ending after the contract
anniversary on which the Owner attains age [80], or after the
Maximum Guaranteed Death Benefit has been reached, the Guaranteed
Death Benefit Interest Rate is [0%].
GA-RA-1044-4
SPECIAL FUNDS
Where used in this Endorsement the Special Funds are [the Liquid
Assets Division, the Limited Maturity Bond Division, the Fixed
Allocations, and the Guaranteed Interest Division]. The Company
reserves the right to classify newly available divisions as Special
Funds from the date of their availability to the Owner. The Company
may reclassify an existing division as a Special Fund or remove such
designation. Such reclassification shall be made with 30 days notice
to contract owners, and will apply to amounts transferred or
otherwise added to such division after the date of change.
MAXIMUM GUARANTEED DEATH BENEFIT
The Maximum Guaranteed Death Benefit is equal to [three] times
premium paid, plus [three] times any Credits, reduced by the amount
of any Special and Prorata Partial Withdrawal Adjustments. Any
addition due to spousal continuation will not affect the Maximum
Guaranteed Death Benefit or the Guaranteed Death Benefit.
SPECIAL AND PRORATA PARTIAL WITHDRAWAL ADJUSTMENTS
For any partial withdrawal, the Death Benefit components will be
reduced by Prorata or Special Partial Withdrawal Adjustments. A
Prorata Partial Withdrawal Adjustment will be made unless a Special
Partial Withdrawal Adjustment applies to that component for the
withdrawal. Special Partial Withdrawal Adjustments are made when
partial withdrawals in a contract year do not exceed [7%] of the sum
of cumulative premiums, plus any credits, but only if partial
withdrawals in each prior contract year did not exceed [7%] of the
sum of cumulative premiums paid and any Credits prior to that year.
The Special Partial Withdrawal Adjustment is equal to the amount of
Accumulation Value withdrawn. Special Partial Withdrawal Adjustments
are applicable only in the calculation of the Maximum Guaranteed
Death Benefit and the Guaranteed Death Benefit, in all other cases
including the Alternate Guaranteed Death Benefit, withdrawals are
treated as Prorata Partial Withdrawal Adjustment.
The Prorata Partial Withdrawal Adjustment to a death benefit
component for a partial withdrawal is equal to (1) divided by (2),
multiplied by (3), where: (1) is the Accumulation Value withdrawn,
(2) is the Accumulation Value immediately prior to withdrawal, and
(3) is the amount of the applicable death benefit component
immediately prior to the withdrawal.
ALTERNATE GUARANTEED DEATH BENEFIT
On the Contract Date, the Alternate Guaranteed Death Benefit is the
initial premium plus any Credit if applicable. On subsequent
Valuation Dates, the Alternate Guaranteed Death Benefit is calculated
as follows:
(1) Start with the Alternate Guaranteed Death Benefit from the prior
Valuation Date;
(2) Add to (1) any additional premium paid and any Credits since the
prior Valuation Date and subtract from (1) any Prorata Partial
Withdrawal Adjustments for any Partial Withdrawals taken since the
prior Valuation Date.
(3) On a Valuation Date that occurs on or prior to the owner's
attained age [80], which is also a Certificate Anniversary, we set
the Guaranteed Death Benefit equal to the greater of (2) or the
Accumulation Value as of such date.
On all other Valuation Dates, the Alternate Guaranteed Death Benefit
is equal to (2).
GA-RA-1044-4
CHANGE OF OWNER
A change of Owner from a sole owner to a sole owner (where there
have never been multiple owners designated) will result in
recalculation of the Death Benefit, the Guaranteed Death Benefit
the Alternate Death Benefit, and the Maximum Guaranteed Death
Benefit. If the new owner's attained age at the time of the
change is less than [80], the Guaranteed Death Benefit, the
Alternate Death Benefit, and the Maximum Guaranteed Death Benefit
in effect prior to the change will remain in effect and the Death
Benefit provision shall apply. If the new owner's attained age
at the time of the change is [80] or greater, but not greater
than [85]:
(a) the Guaranteed Death Benefit, the Alternative Death Benefit,
and the Maximum Guaranteed Death Benefit following the change
will be zero; and
(b) the Death Benefit will then be the greatest of:
1) the cash surrender value;
2) the accumulation value, less any premium credits applied
within [12] months prior to the date of death; and
3) the sum of the premiums paid, reduced by Prorata Partial
Withdrawal Adjustments for any Accumulation Value withdrawn .
If ownership change results in multiple owners of a contract or
if there has ever been multiple owners, the Guaranteed Death
Benefit, the Alternate Death Benefit and the Maximum Guaranteed
Death Benefit shall be set to zero. If the oldest owner is age
[85] or younger at the time of the change, the Death Benefit will
then be the greatest of: (b) 1, (b) 2 or (b) 3 above.
If any owner's or oldest multiple owner's attained age is [86] or
greater at the time of the change, the Guaranteed Death Benefit,
the Alternate Death Benefit and the Maximum Guaranteed Death
Benefit will be zero, and the Death Benefit will then be the cash
surrender value.
When a change of owner reduces the Guaranteed Death Benefit, the
Alternate Death Benefit and the Maximum Guaranteed Death Benefit
to zero, there will be a reduction in the mortality and expense
risk charge.
SPOUSAL CONTINUATION UPON DEATH OF OWNER
If at the Owner's death, the surviving spouse of the deceased
Owner is the beneficiary and such surviving spouse elects to
continue the contract as their own pursuant to Internal Revenue
Code Section 72(s) or the equivalent provisions of U.S. Treasury
Department rules for qualified plans, the following will apply:
(a) If the greater of: A) the lesser of 1) the Guaranteed Death
Benefit and 2) the Maximum Guaranteed Death Benefit, or B) the
Alternate Death Benefit as of the date we receive due proof of
death of the Owner, minus the Accumulation Value, also as of that
date, is greater than zero we will add such difference to the
Accumulation Value. Such addition will be allocated to the
divisions of the Separate Account in proportion to the
Accumulation Value in the Separate Account. If there is no
Accumulation Value in the Separate Account, the addition will be
allocated to the Liquid Assets division, or its successor.
(b) The Guaranteed Death Benefit, the Alternate Death Benefit
and the Maximum Guaranteed Death Benefit will continue to apply,
with all age criteria using the surviving spouse's age as the
determining age. The Guaranteed Death Benefit shall be
reallocated to the Special and other funds in proportion to the
Accumulation Value.
(c) At subsequent surrender, any surrender charge applicable to
premiums paid prior to the date we receive due proof of death of
the Owner will be waived. Any premiums paid later will be
subject to any applicable surrender charge.
This addition to Accumulation Value is available only to the
spouse of the owner as of the date of death of the owner if such
spouse under the provisions if this contract elects to continue
the contract as their own.
GA-RA-1044-4
DEDUCTIONS FROM THE DIVISIONS
Mortality and Expense Risk Charge - We deduct a charge from the
assets in each separate account division on a daily basis at a
rate of [0.005256%] (equivalent to an annual rate of [1.90%]) for
mortality and expense risks. The charge is not deducted from the
fixed account or general account accumulation values.
All other provisions of the Contract to which this Endorsement is
attached remains unchanged.
/s/Xxxxxxx Xxxxxxx
Signed: --------------------
Xxxxxxx Xxxxxxx
XX-XX-0000-0
