EXHIBIT 26(D)(13)
PREMIUM DEPOSIT ACCOUNT AGREEMENT
--------------------------------------------------------------------------------
This agreement is a part of the policy WHEN WILL WE WITHDRAW AMOUNTS FROM
to which it is attached and is subject YOUR PREMIUM DEPOSIT ACCOUNT TO PAY
to all its terms and conditions. This YOUR ANNUAL PREMIUMS?
agreement is effective as of the
original policy date of the policy We will withdraw an amount from your
unless a different effective date is premium deposit account to pay your
shown on the policy data pages. premium on the first business day
after each policy anniversary, or if
WHAT DOES THIS AGREEMENT PROVIDE? this agreement is issued with a
variable policy, on the first
This agreement allows for the payment valuation date after your policy
of the premiums for your life anniversary.
insurance policy on an annual basis,
using amounts withdrawn from your WHAT IS THE GUARANTEED INTEREST RATE
premium deposit account. The amount THAT APPLIES TO AMOUNTS WITHDRAWN FROM
and number of annual premium payments YOUR PREMIUM DEPOSIT ACCOUNT?
to be paid will be shown on your
Premium Deposit Account Confirmation, We credit a specified rate of interest
which we will send you upon receipt of on each premium deposit you make to
your deposit. your premium deposit account. The rate
of interest that we credit a premium
IS THERE A CHARGE FOR THIS AGREEMENT? deposit does not change and is
guaranteed for the duration that all
No. There is no charge for this or a portion of the premium deposit
agreement. remains in the premium deposit
account.
CAN YOU HAVE MORE THAN ONE PREMIUM
DEPOSIT ACCOUNT ON YOUR POLICY AND CAN The rate of interest that we credit
ONE PREMIUM DEPOSIT ACCOUNT FUND MORE different premium deposits may vary.
THAN ONE POLICY? However, we will not credit a premium
deposit with an annual rate of
No. Only one premium deposit account interest of less than the Minimum PDA
is allowed per policy and only one Guaranteed Annual Interest Rate shown
policy is allowed per premium deposit on the policy data pages.
account.
The rate of interest that we use to
HOW MANY DEPOSITS CAN BE MADE TO YOUR calculate the interest portion of your
PREMIUM DEPOSIT ACCOUNT? premium payment is shown on the
Premium Deposit Account Confirmation
We will accept up to three deposits for that premium deposit. We will send
into your premium deposit account. you a Premium Deposit Account
However, you may only make one deposit Confirmation for each premium deposit
to your premium deposit account in the you make.
first policy year. If you send us
additional deposits, we will require WHEN IS CREDITED INTEREST APPLIED?
the following:
We apply credited interest to the
(1) each of the new annual amount withdrawn from your premium
premium payments must be deposit account to pay the premium at
equal; and the time the withdrawal is made. The
credited interest we apply to the
(2) the premium amount must be amount withdrawn is determined based
equal to or greater than on the interest rate in effect for the
your current annual premium; premium deposit from which the amount
and withdrawn is taken. We credit that
interest rate on the amount withdrawn
(3) the period over which from the date of the premium deposit,
premiums are paid from the as stated on your Premium Deposit
premium deposit account must Account Confirmation, to the date of
be at least as long as that withdrawal.
shown on your most recent
Premium Deposit Account The credited interest we apply to the
Confirmation. amount withdrawn is paid directly from
the assets of our general account and
WHAT IS THE AMOUNT WE WILL WITHDRAW not from your premium deposit account.
FROM YOUR PREMIUM DEPOSIT ACCOUNT? Only premium deposits are held in the
premium deposit account.
At the time the annual premium is
paid, we will withdraw an amount from
your premium deposit account equal to
the annual premium less the amount of
interest we credited on the amount
withdrawn. Together, the amount
withdrawn from your premium deposit
account and the interest we credited
on that amount will equal the annual
premium.
14-20005 Premium Deposit Account Minnesota Life Insurance Company
IS INTEREST CREDITED UPON TERMINATION CAN YOU CHANGE THE ANNUAL PREMIUM
OF THIS AGREEMENT? WHILE YOUR PREMIUM DEPOSIT ACCOUNT
AGREEMENT IS IN EFFECT?
Yes. If this agreement is terminated
for any reason we will pay interest on No, except when you increase your
the balance of each deposit made to annual premium as a result of
the premium deposit account. Interest additional deposits into your premium
on the balance of each deposit is deposit account.
calculated using the Minimum PDA
Guaranteed Annual Interest Rate shown CAN YOU MAKE PREMIUM PAYMENTS TO YOUR
on the policy data pages, from the POLICY IN ADDITION TO THOSE MADE BY
later of: YOUR PREMIUM DEPOSIT ACCOUNT?
(i) the date of your initial Yes. You may make additional premium
deposit into your premium payments of any amount on your policy,
deposit account; or subject to any restrictions or
conditions for premium payments as
(ii) the date of the last premium stated in your policy.
payment made from your
premium deposit account; or WHAT HAPPENS IF WE CANNOT APPLY THE
FULL PREMIUM AMOUNT FROM YOUR PREMIUM
(iii) the date of any deposits DEPOSIT ACCOUNT WHEN YOUR PREMIUM IS
made into your premium DUE?
deposit account after the
last premium payment from If the full amount of the premium
your premium deposit would disqualify your policy as life
account. insurance according to the terms of
the policy, we will apply as much
IS CREDITED INTEREST APPLIED TO premium as we can so your policy will
AMOUNTS WITHDRAWN FROM YOUR PREMIUM remain qualified. Any amount of
DEPOSIT ACCOUNT OR INTEREST RECEIVED premium that remains will be returned
UPON TERMINATION OF THIS AGREEMENT to you. We will treat this as a
TAXABLE? termination of this agreement and send
you the balance of your premium
Yes. The credited interest that we deposit account with interest
apply to amounts withdrawn from your calculated using the Minimum PDA
premium deposit account to pay Guaranteed Annual Interest Rate.
premiums and interest received upon
termination of this agreement are If the full amount of the premium
taxable. For each year interest is would cause your policy to become a
credited, we will send you a Form modified endowment contract (MEC), we
1099-INT showing the annual amount. will apply as much premium as we can
according to your existing MEC
CAN YOU WITHDRAW THE FULL BALANCE OF instructions. Any amount of premium
YOUR PREMIUM DEPOSIT ACCOUNT? that remains will be returned to you.
If we return any premium, we will
Yes. You may make a request to treat this as a termination of this
withdraw the full balance of your agreement and send you the balance of
premium deposit account. We will treat your premium deposit account with
this as a termination of this interest calculated using the Minimum
agreement and send you the balance of PDA Guaranteed Annual Interest Rate.
your premium deposit account with
interest calculated using the Minimum TO WHOM WILL WE PAY ANY BALANCE
PDA Guaranteed Annual Interest Rate. REMAINING IN YOUR PREMIUM DEPOSIT
ACCOUNT UPON THE DEATH OF THE INSURED?
CAN YOU WITHDRAW A PARTIAL BALANCE OF
YOUR PREMIUM DEPOSIT ACCOUNT? We will pay to the beneficiary of the
policy any balance remaining in your
No. However, your request to withdraw premium deposit account, with accrued
a partial balance of your premium interest, upon the death of the
deposit account will be treated as a insured.
termination of this agreement. We will
send you the remaining balance of your IS THIS AGREEMENT SUBJECT TO THE
premium deposit account with interest INCONTESTABILITY AND SUICIDE
calculated using the Minimum PDA PROVISIONS OF THE POLICY?
Guaranteed Annual Interest Rate.
No. Those provisions do not apply to
WHEN WILL THE BALANCE OF YOUR PREMIUM this agreement. If the insured dies
DEPOSIT ACCOUNT BE RETURNED TO YOU? within the contestable period from any
cause, any remaining balance in your
The balance of your premium deposit premium deposit account will be paid
account will be returned to you under to the beneficiary of the policy, with
the following circumstances: accrued interest calculated using the
Minimum PDA Guaranteed Annual Interest
(1) when your policy terminates Rate.
or is surrendered; or
(2) when this agreement is
terminated.
WHEN DOES THIS AGREEMENT TERMINATE? CAN THIS AGREEMENT BE REINSTATED?
This agreement will terminate: No. If this agreement terminates for
any reason, it will not be reinstated.
(1) when your policy terminates However, you may be allowed to add a
or is surrendered; or new premium deposit account agreement.
(2) when we receive a written [Xxxx X. Xxxxxxxxxxx Xxxxxx X. Xxxxxxx
request to terminate this Secretary President]
agreement; or
(3) after the balance in your
premium deposit account goes
to zero; or
(4) when you decrease your
annual premium; or
(5) when you request to withdraw
all or part of the balance
of your premium deposit
account; or
(6) when we cannot apply the
full premium amount from
your premium deposit account
at the time your planned
premium becomes due; or
(7) upon the death of the
insured.
