TERM LIFE INSURANCE CONTRACTUAL SETTLEMENT PAYMENT OPTIONS POLICY PROVISIONS

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.