Common use of Decreasing Term Plans Clause in Contracts

Decreasing Term Plans. For decreasing term plans, the reinsurance benefit shall be the current death benefit of the policy times the reinsurance portion "p". The reinsurance proportion "p" is calculated at issue as follows: p = Policy Death Benefit - Amount Retained -------------------------------------- Policy Death Benefit For reinsurance of plans with fluctuating net amounts at risk or with increasing or decreasing death benefits, the reinsurance benefit for the entire policy year shall be the reinsurance benefit calculated by the Company at the beginning of each policy year, in accordance with the methods outlined above. The Reinsurer's liability shall be the amount calculated at the beginning of each policy year. If there is a change in the policy, the Company shall send amended reinsurance benefit amounts to the Reinsurer.

Decreasing Term Plans. For decreasing term plans, the reinsurance benefit shall be the current death benefit of the policy times the reinsurance portion proportion "p". The reinsurance proportion "p" is calculated at issue as follows: p = Policy Death Benefit - Amount Retained -------------------------------------- Policy Death Benefit For reinsurance of plans with fluctuating net amounts at risk or with increasing or decreasing death benefits, the reinsurance benefit for the entire policy year shall be the reinsurance benefit calculated by the Company at the beginning of each policy year, in accordance with the methods outlined above. The Reinsurer's liability shall be the amount calculated at the beginning of each policy year. If there is a change in the policy, the Company shall send amended reinsurance benefit amounts to the Reinsurer.