Common use of Extended Insurance Clause in Contracts

Extended Insurance. This will be term insurance on the Insured's life. We will pay the amount of term insurance if the Insured dies in the term we describe below. Before the end of the term there will be cash values but no loan value. The amount of term insurance will be equal to the insurance amount on the due date of the premium in default, minus any contract debt. The amount of the insurance will not vary. The term is a period of time that will start on the due date of the premium in default. The length of the term will be what is provided when we use the net cash value as a net single premium for extended term insurance. The length of the term will depend on the net cash value, the amount of insurance, the Insured's issue age and sex, and on the length of time since the contract date. (The net single premiums that we refer to here are not those we show on the Contract Data page(s). The ones we show there are used to compute the variable insurance amount.)