Exhibit 26(d)(13)
Income Protection Agreement
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 original
policy date of this policy.
What does this agreement provide?
This agreement allows you the right to direct us to provide for all, or a part,
of the policy's death proceeds to be paid in installment payments. The death
proceeds paid in installment payments under this agreement are an irrevocable
settlement option. The death proceeds to which this agreement applies are the
death proceeds of the policy at the time of the insured's death, including any
additional insurance on the insured's life provided by any term insurance
agreement, but excluding any additional insurance on the insured's life
provided by other agreements.
How do we determine the installment payments made under this agreement?
The installment payments are determined by the frequency and number of
installment payments you chose on the application, the Settlement Option
Guaranteed Interest Rate shown on the policy data pages, and the amount of the
death proceeds that will be paid out in installments. We determine the amount
of death proceeds to be paid out in installment payments by calculating an
income protection agreement (IPA) amount and multiplying it by the installment
percentage you chose on the application.
What is the IPA amount?
The IPA amount is the amount by which the death proceeds payable under this
agreement are defined. The IPA amount shown on the policy data pages is equal
to the face amount of the policy plus any term insurance agreement amount on
the insured's life.
What percentage of the IPA amount can be paid in installments?
You may choose from the minimum IPA percentage amount shown on the policy data
pages up to a maximum of 100% of the IPA amount that may be designated as
installment payments.
When must you choose how the IPA amount will be paid under this agreement?
When you apply for this policy, you must choose what percentage of the IPA
amount is subject to payment as a lump sum, and what percentage is subject to
payment in installments.
You must also choose the frequency of the payments during the installment
period.
What is the number of installment payments?
The number of years of installment payments is chosen by you on your
application subject to a minimum of 10 years and a maximum of 30 years.
Installment payments also cannot extend beyond the policy anniversary nearest
the insured's age 95. The final installment payment may be earlier if you have
provided that direction on your application.
What is the limitation on the frequency of installment payments?
Installment payments may be paid annually or monthly. Once you choose the
frequency of payments, you cannot change that frequency.
What happens to the IPA amount if you change your face amount or term insurance
amount?
If you change your face amount or term insurance amount, we will automatically
increase or decrease the IPA amount accordingly.
Can you change the IPA amount percentages of lump sum and installment payments?
Yes. If you are increasing the face amount of the policy, you may also request
the IPA amount percentages of lump sum and installment payments be changed.
However, you must provide evidence of good health satisfactory to us, and we
must approve your request.
How will I know the death proceeds that are payable under this agreement?
The lump sum percentage and amount as well as the installment percentage and
amount are shown on the policy data pages. In addition, the frequency of the
installment payments and the number of installment payments are shown on the
policy data pages.
If, at the insured's death, the portion of the death proceeds payable under
this agreement differs from the IPA amount shown on the policy data pages, the
lump sum amount and installment amount will be adjusted proportionately.
Will the beneficiary receive a confirmation of the payments?
Yes. Upon proof of the death of the insured, we will send the beneficiary at
the address we have on record a confirmation of the scheduled installment
payments. All installment payments provided by this agreement will be paid to
the beneficiary of the policy pursuant to the beneficiary provision of the
policy.
Some portion of each installment payment may be taxable as interest income and
will be reported to the beneficiary on applicable IRS forms.
12-302 Income Protection Agreement Minnesota Life Insurance Company
What is the impact of this agreement on the policy?
The company, at its own discretion, may assess a lower cost of insurance charge
against the policy's accumulation value. This lower cost of insurance charge is
not guaranteed and may change at any time.
If the cost of insurance charge is lowered, it will never be less than zero.
In addition, the death proceeds paid as installment payments under this
agreement are an irrevocable settlement option and cannot be changed at the
death of the insured.
Is there a charge for this agreement?
No. There is no charge for this agreement.
Will this agreement change the policy's death proceeds?
No. This agreement does not change the policy's death proceeds. This agreement
applies only to how the death proceeds will be paid.
What if a beneficiary of the policy dies before the end of the installment
period?
If a beneficiary dies before their share of the policy's death proceeds are
paid in full, we will continue the installment payments to the successor
beneficiary shown in our records. A successor beneficiary is the person
designated by the beneficiary to receive the remaining death benefit proceeds,
if any, upon the beneficiary's death. If no successor beneficiary is named, or
if no successor beneficiary is living at the time of the beneficiary's death,
we will pay the entire commuted value to the estate of the deceased beneficiary.
Is this agreement subject to the incontestability and suicide provisions of the
policy?
Yes. Those provisions apply to this agreement.
When does this agreement terminate?
This agreement will terminate on the earlier of:
(1)the date when your policy terminates or is surrendered; or
(2)the death of the insured; or,
(3)the termination date shown on the policy data pages.
Can this agreement be reinstated?
Yes. If the policy to which this agreement is attached is reinstated in
accordance with its provisions, this agreement must also be reinstated provided
that the policy anniversary nearest the insured's age 95 has not occurred.
/s/ Xxxxxx X. Xxxxxxxxx /s/ Xxxxxx X. Xxxxxxx
Secretary President]
