What are the contractual
provisions of a term life insurance policy contract?
These
term
life insurance contractual settlement payment options policy provisions are general in nature and may differ by
insurance company and/or by policy filing.
SETTLEMENT
PAYMENT OPTIONS
The following sections describe the payment options available under this policy.
Option 1 - Life Income
We will make equal monthly payments during the payee's lifetime. Payments will end with the last monthly
payment before his or her death. The amount of each payment, per $1,000 of Policy Proceeds, will not be less than that shown in the Option 1 table.
Option 2 - Life Income With Period Certain
We will make equal monthly payments during the payee's lifetime, with a minimum period guaranteed (60,120,180 or 240 months). The amount of each payment, per $1,000 of Policy Proceeds, will not be less than that shown in
the Option 2 table. At the Payee's death, we will continue
to pay the balance of the unpaid payments, if any, to the Payee's Beneficiary for the balance of the guaranteed period.
Option 3 - Joint Life Income
We will make payments for as long as either of two designated persons live. The amount of each payment, per $1,000 of Policy Proceeds, will not be less than
that shown in the Option 3 table.
Option 4 - Payments for a Fixed Period
We will make payments for a fixed period. The amount of each payment, per $1,000 of Policy Proceeds, will not be less than that shown in the Option 4 table. At the
Payee's death, we will continue to pay the balance of the unpaid payments to the Payee's Beneficiary.
Option 5 - At Interest
The proceeds may be left with us to draw interest.
Interest may be paid annually, semi-annually, quarterly, or monthly. The first payment will be made at the end of
the interest frequency period chosen. The guaranteed
interest rate is 3% a year, compounded yearly. Interest shall not be paid beyond the lifetime of one Payee except with our consent.
Evidence of Survival
We have the right to require satisfactory proof of any payee's age. The right to change options is not
available after payments commence under this option.
Automatic Payment Option
If settlement of the proceeds of this policy is delayed
over 30 days, option 5 will be applied automatically.
Interest will be paid yearly and the person(s) entitled to the
proceeds has the right to withdraw the proceeds or elect any payment option permitted by this policy. The legal rate indicated by the state will be used if it is higher than
our declared rate.
Basis of Values
The payment option tables are based on 3% interest compounded yearly. For options involving lifetime
income, rates in the tables are based on Table "a" mortality
rates. We may offer more favorable rates than those determined on this basis.
Additional Options
Any proceeds payable under this policy may be paid under any other method of payment agreed to by us at the time of settlement.
This concludes the
term life insurance contractual settlement payment options policy provisions
section of the provisions of
a
term life insurance policy contract.