If the partial surrender is made during the first seven policy years a new premium limitation will be calculated for purposes of determining the modified endowment contract status of the policy. SURRENDER CHARGES Surrender charges decrease over 14 years with no charge in policy years 15 and later. The surrender charge applicable for the initial specified amount is shown in the policy schedule. POLICY LOANS While this policy is in force, the owner may obtain all or part of the available loan value by written notice. This policy, assigned to us, is the only security needed. LOAN INTEREST Interest on policy loans will be payable in advance from the date of the loan to the next policy anniversary at the annual interest rate specified below. Banner Policy 7.4% William Penn Policy 3.8% Interest is payable in advance at the beginning of each policy year. If interest is not paid when due, it will be added to the policy loan and bear interest at the same rate. The guaranteed 2.0% interest is credited to the account value which is equal to the amount borrowed at policy year-end. ACCELERATED DEATH BENEFIT The accelerated death benefit payment is payable in the event of a qualifying terminal illness. The maximum accelerated death benefit amount is the lesser of $500,000 or 75% of the policy’s primary death benefit, less any policy loan. The accelerated death benefit is treated as a lien, which accrues interest. Upon the death of the insured, the death benefits payable are reduced by the total accelerated death benefit lien. The accelerated death benefit feature is subject to state variation and is not available in all states. See rider ADB and state variations for full benefit description, requirements and exclusions.
MONTHLY DEDUCTION The deduction for a policy month is made up of the cost of insurance, the cost of additional coverage provided by riders and benefits, the monthly policy fee and the monthly administrative charge as shown in the policy schedule. DEATH BENEFIT The death benefit is the greater of the specified amount, or the account value multiplied by the applicable Death Benefit Factor (Corridor Percentage) shown in the policy. INCREASES IN SPECIFIED AMOUNT No increases are allowed. DECREASES IN SPECIFIED AMOUNT Decreases are permitted after the first five years. The specified amount in effect at any time under this policy may not be decreased below $50,000. LIMITATION OF BENEFITS Two-year contestability and suicide provisions apply. TARGET PREMIUM The target premium can be found in the page footer on the first page of the policy projection detail. PREMIUM PAYMENT OPTIONS Policy owners can choose to increase, decrease, skip or stop premium payments. Making a change in premium payments may affect policy values and policy lapse protection. A decision to change the planned premium must take into account factors such as premiums paid since the policy’s inception, the current account value, the impact on lapse protection, outstanding loans, and the credited interest rate. POLICY SURRENDER The owner may surrender this policy and receive the cash surrender value during the insured’s lifetime. CASH SURRENDER VALUE The cash surrender value is the account value minus any outstanding policy loans and minus any surrender charges. PARTIAL SURRENDERS A partial surrender allows you to take a portion of the cash surrender value of the policy after the first five years. The account value will be reduced by the dollar amount of the partial surrender. The specified amount, and Coverage Guarantee Amount will be reduced by the ratio equal to the partial surrender amount divided by the cash surrender value (excluding the reduction for any policy indebtedness). The partial surrender amount must not result in the specified amount being less than the policy’s minimum death benefit. The death benefit following the partial surrender will be greater than or equal to the minimum death benefit required under section 7702 of the Internal Revenue Code.
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