GRACE PERIOD This policy provides for a grace period of 61 days to pay sufficient premiums to prevent policy termination. Except as provided in the Coverage Guarantee Provision, this policy will enter the grace period if the cash surrender value is less than the monthly deduction plus cost of insurance change. We will send notification of the grace period and the minimum premium due to the owner’s last known address and to any assignee of record at least 30 days prior to the date the policy is to terminate. If the premium due on such monthly anniversary is not paid within the grace period, all coverage under this policy will terminate without value at the end of the grace period. If a death claim occurs during the grace period, overdue monthly deductions will be deducted from the proceeds. LATE PREMIUM COVERAGE Any premium up to the amount due, received within 30 days of the premium due date, will be credited as of the premium due date for the coverage protection test. However, the premium will be applied to the account value and interest earnings will commence on the actual date premiums are received. 1035 EXCHANGES Premium from a 1035 Exchange received within 180 days of the policy date will be credited as of the policy date for the coverage protection test. However, the premium will be applied to the account v alue and interest earnings will commence on the actual date premiums are received. POLICY MATURITY The policy will mature at age 121. It is possible that the policy will terminate prior to the maturity date if the total premiums paid are not sufficient to continue coverage to the maturity date; a policy loan or partial surrender is made; or changes are made in the specified amount or plan as originally issued. EXTENDED MATURITY DATE The policy owner can extend a Banner Life policy maturity date beyond age 121. The death benefit will be continued as the amount in effect, if any, at age 121 and there will be no further monthly deductions from the account value. New policy loans and loan repayments are permitted. Interest will continue to accrue on and be added to any outstanding loan balance. The policy may not qualify as life insurance under federal tax law after the insured reaches age 121 and may be subject to adverse tax consequences. A tax advisor should be consulted before the owner chooses to continue a Banner Life policy after age 121. William Penn universal life plans mature at age 121 and can not be extended. CATCH UP PROCESS Since this is a flexible premium plan, policy owners can “catch up” on premium payments to assure lapse protection.
A “catch up” requires one to bring the Coverage Guarantee Amount to the level it would be at if premiums had been paid
on time and in an amount as planned. UNDERWRITING CLASSIFICATION Male/Female Preferred Plus Non-Tobacco (PPNT) Preferred Non-Tobacco (PNT) Preferred Tobacco (PT) Standard Plus Non-Tobacco (SPNT) Standard Non-Tobacco (SNT) Standard Tobacco (ST) Standard (A) * SUBSTANDARD
Available through Table 12 on standard plus and standard classes, subject to underwriting discretion. Substandard cost of insurance is a multiple of standard plus or standard cost of insurance rates, 25% per table. Extra cost of insurance for table rated cases is assessed for the life of the policy. Target premiums increase by 15% per table rating. Temporary and permanent flat extras are available. No additional target premium for temporary flat extras of five years or less. For permanent flat extras, increase the target premium by amount of flat extra divided by 0.93. COST OF INSURANCE CHARGE The monthly cost of insurance rates are based on the insured’s attained age, sex, underwriting classification and on our expectations as to future experience. We reserve the right to change costs of insurance rates at our sole discretion; however, the cost of insurance rates will never be greater than the guaranteed maximum rates shown in the policy schedule. The guaranteed maximum rates are based on the 2017 Commissioners Standard Ordinary Mortality Table (male/ female, smoker distinct, age nearest birthday). PREMIUM LOAD AND POLICY FEE Premium Expense Charge 7.0% Monthly Policy Fee $5 ADMINISTRATIVE CHARGE An administrative charge calculated using a rate per $1,000 charge of coverage which varies by issue age, sex and underwriting classification is deducted monthly during all policy years. Upon any decrease in specified amount, future monthly administrative charges will be revised accordingly. MODAL FACTORS There are not specific premium modal factors; however, to obtain the same financial objectives, the total amount paid by semi-annual, quarterly and monthly premium payments will be higher than an annual premium payment.
* For A-List conversions only. Not valid without full disclosure. Not for public distribution. For broker use only.
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