Common use of Face Amount Decrease Clause in Contracts

Face Amount Decrease. You may request a decrease in the Basic Face Amount of the Policy by providing a Written Request. A decrease in Basic Face Amount is subject to each of these limits: · Only one requested decrease per Policy year is allowed; · A decrease prior to the Initial Date of Decrease shown in the Policy Specifications is not allowed; and · The Basic Face Amount remaining after a decrease must be at least equal to the Minimum Basic Face Amount Following Decrease shown in the Policy Specifications. The effective date of the decreased Face Amount will be the first Monthly Payment Date on or next following the date We approved Your Written Request. Unless and until it is specified otherwise by Written Request, any request for a decrease in Basic Face Amount will not take effect if the requested change would cause the Policy to be classified as a Modified Endowment Contract under the Code in accordance with the Modified Endowment Contract Tax Status section of this Policy. Consult with a qualified tax advisor before requesting a decrease in Basic Life Coverage Layers as described below. We reserve the right to allow a Face Amount Decrease prior to the Initial Date of Decrease. If this right is exercised, it will be done so uniformly for all members of the same Class. Upon approval of any decrease, a Supplemental Schedule of Coverage reflecting the decrease will be sent to the Address on Record. The request for a decrease in the Basic Face Amount will be subject to the Guideline Premium Limit (if specified for Your Policy) as defined in the Code. This may result in one or more refunds of premiums or required distributions of Accumulated Value in order to maintain compliance with such limit, in accordance with the Tax Qualification as Life Insurance section of this Policy. Such request will not be allowed to the extent We determine that any resulting Guideline Premium limit would cause an amount in excess of the Net Cash Surrender Value to be distributed from the Policy.

Face Amount Decrease. You may request a Subject to other requirements described in this section, you may, by Written Request, decrease in the Basic Face Amount of the Policy by providing a Written Requestif there are one or more Coverage Segments eligible for decrease. A Coverage Segment is eligible for decrease in Basic Face Amount is subject to each only if it has attained the fifth anniversary of these limits: · Only one requested decrease per Policy year is allowed; · A decrease prior to the Initial Date of Decrease shown in the Policy Specifications is not allowed; and · The Basic Face Amount remaining after a decrease must be at least equal to the Minimum Basic Face Amount Following Decrease shown in the Policy Specificationsits effective date. The effective date of the decreased Face Amount will be the first Monthly Payment Date on or next following the date we receive the Written Request and have approved it. We approved Your Written Request. Unless and until it is specified otherwise by Written Request, any request for a decrease in Basic Face Amount will not take effect if the requested change would cause the Policy to be classified as a Modified Endowment Contract under the Code in accordance with the Modified Endowment Contract Tax Status section of this Policy. Consult with a qualified recommend you consult your tax advisor before requesting a decrease in Basic Life Coverage Layers as described below. We reserve the right to allow a policy Face Amount Decrease prior to the Initial Date of Decrease. If this right is exercised, it will be done so uniformly for all members of the same ClassAmount. Upon approval of any unscheduled decrease, we will send you a Supplemental Schedule of Coverage reflecting Coverage, which will include the decrease decreased Face Amount and the effective date of the decrease. If there have been prior increases in Face Amount, they will be sent to decreased or eliminated in the Address on Recordfollowing order: • first, the most recent increase; • next, other increases in Face Amount, in the reverse order in which they arose; and • finally, the original Face Amount. The request for a decrease in the Basic Face Amount will be subject to the Guideline Premium Limit (if specified for Your Policyapplicable to your policy) as defined in the Code. This may result in one or more refunds a refund of premiums or required distributions and/or the distribution of Accumulated Value in order to maintain compliance with such limit, in accordance with the Tax Qualification as Life Insurance section of this Policy. Such request will not be allowed to if the extent We determine that any resulting Guideline Premium limit would could cause an amount in excess of the Net Cash Surrender Value to be distributed from the Policypolicy. No request for a Face Amount decrease will be approved if the decrease would cause the policy to be classified as a Modified Endowment Contract under the Code, unless you authorize such a change in classification by Written Request.