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EXHIBIT 1.A.(13)(ii)
RIDER FOR TERM INSURANCE BENEFIT ON LIFE OF
INSURED--DECREASING AMOUNT
This benefit is a part of this contract only if it is included in the list
of supplementary benefits on the contract data pages.
BENEFIT
We will pay an amount under this benefit if we receive due proof that the
Insured died: (1) in the term period for the benefit: and (2) while this
contract is in force and not in default beyond the last day of the grace period.
Any proceeds under this contract that may arise from the Insured's death will
include this amount. But our payment is subject to all the provisions of the
benefit and of the rest of this contract.
We show the initial Amount of Term Insurance under this benefit on the
contract data pages. We also show the term period for the benefit there. It
starts on the contract date, which we show on the first page. The anniversary at
the end of the term period is part of that period.
AMOUNTS PAYABLE
The amount we will pay depends on when death occurs. In the Table of
Amounts of Insurance on the contract data pages we show the amount we will pay
if death occurs in a given contract year.
CONVERSION TO ANOTHER PLAN OF INSURANCE
RIGHT TO CONVERT
You may be able to exchange this benefit for a new contract of life
insurance on the Insured's life. You will not have to prove that the Insured is
insurable. When we use the phrase new contract in this provision, we mean the
contract for which this benefit may be exchanged.
CONDITIONS
Your right to make this exchange is subject to all these conditions: (1)
The amount we would have paid under this benefit if the Insured had died just
before the contract date of the new contract must be large enough to meet the
minimum for a new contract, as we describe under Contract Specifications. (2)
You must ask for the exchange in writing and in a form that meets our needs. (3)
You must send this contract to us to be endorsed. (4) We must have your request
and the contract at our Home Office while the benefit is in force and at least
five years before the end of its term period.
The new contract will not take effect unless the premium for it is paid
while the Insured is living and within 31 days after its contract date. If the
premium is paid as we state, it will be deemed that: (1) the insurance under the
new contract took effect on its contract date: and (2) this benefit ended just
before that contract date.
PREMIUM CREDIT
If your request for a new contract is received at our Home Office before
the fifth anniversary of this contract, we will allow a credit on each premium
that is due or scheduled for payment during the first year of the new contract.
If, as of the date of the new contract, this contract has been in force for at
least one year, the credit will be equal to 10% of the premium for the new
contract, excluding any premium or charge for an extra risk. If, as of the date
of the new contract, this contract has been in force for less than one year, the
credit will equal to the credit determined in the preceding sentence, multiplied
by the number of months for which this contract has been in force, divided by
twelve. We will apply the credit to each due or scheduled first-year premium on
the date we receive payment of the balance of that premium.
Example: You might request an exchange during the third year of this
contract. Let us assume that premiums due or scheduled under the new contract
resulting from the exchange would be $100 monthly (with no premium or charge
for an extra risk). We would apply a credit of $10 on each date on which we
receive payment of a least $90 for a monthly premium that is due or scheduled
for payment during the first year of the new contract. If you requested this
exchange after this contract had been in force for only 6 months, we would apply
a credit of $5 ($10 multiplied by 6, divided by 12) on each date on which we
receive payment of $95 for a monthly premium that is due or scheduled during the
first year of the new contract.
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CONTRACT DATE
The date of the new contract will be the date you ask for in your request.
But it may not be more than 61 days after the date of your request. It may not
be less than five years before the end of the term period for the benefit. And
it may not be more than 31 days before we have your request at our Home Office.
CONTRACT SPECIFICATIONS
The new contract will be in the same rating class as this contract. We will
set the issue age and the premiums for the new contract in accordance with our
regular rules in use on its contract date.
The new contract may be on any life or endowment plan we would regularly
issue on its contract date for the same rating class, amount, issue age and sex.
But it cannot be any of these: (1) a single premium contract: or (2) one that
insures anyone in addition to the Insured: or (3) one that includes or provides
for term insurance other than extended insurance: or (4) one with premiums that
increase after a stated time, if its first premium is less than 80% of any later
premium: or (5) one with supplementary benefits other than the benefit to which
we refer later in these paragraphs.
Its face amount will be the amount you ask for in your request. But except
as we state below, that amount must be an amount we would regularly issue for
the plan you choose. And it cannot be less than $10,000 or more than 80% of an
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 an exchange to be
possible.) The face amount you want might be less than the smallest amount we
would regularly issue on the plan you wish. In that case 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 do so.
If (1) the new contract is either on the Life Paid Up at Age 85 plan or has
a premium period at least as long as for that plan, (2) this contract has a
benefit for waiving or paying premiums in the event of disability, and (3) we
would include that kind of benefit in other contracts like the new contract, we
will put that kind of benefit in the new contract. The benefit, if any, 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 this paragraph, 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.
We will not deny a benefit for waiving or paying premiums that we would
have allowed under this contract, and that we would otherwise allow under the
new contract, just because disability started before the contract date of the
new contract. But any premium to be waived or paid for that disability under the
new contract must be at the frequency that was in effect for this contract when
the disability started.
We will not waive or pay any premium under a new contract unless it has a
benefit for waiving or paying premiums in the event of disability. This will be
so even if we have waived or paid premiums under this contract.
CHANGES
You may be able to have this benefit changed to a new contract of life
insurance (either with us or with a subsidiary of ours) other than in accord
with the requirements for exchange 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.
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MISCELLANEOUS PROVISIONS
BENEFIT PREMIUMS AND CHARGES
We show the premiums for this benefit in the contract data pages. From each
premium payment, we make the deductions as shown 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 also shown on the contract data
pages.
Benefit premiums and monthly charges stop on the contract anniversary at
the end of the tern period for this benefit.
TERMINATION
This benefit will end on the earliest of:
1. the end of the last day of grace if the contract is in default; it will
not continue if a benefit takes effect under any contract value options
provision that may be in the contract;
2. the end of the last day before the contract date of any other contract
(a) for which the benefit is exchanged, or (b) to which the benefit is
changed;
3. the date the contract is surrendered under its Cash Value Option, if it
has one; and
4. the date the contract ends for any other reason.
Further, if you ask us in writing in the premium period, we will cancel the
benefit as of the first monthly date on or after 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/ XXXXXXX X. LIGHT
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Secretary
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