MINIMUM SURRENDER VALUE Clause Samples
The Minimum Surrender Value clause establishes the lowest amount that a policyholder will receive if they choose to terminate their insurance policy before its maturity date. Typically, this clause applies to life insurance or endowment policies, where the insurer guarantees a specific minimum payout based on premiums paid and the duration the policy has been in force. By setting a floor for the surrender value, this clause protects policyholders from receiving an unreasonably low amount upon early termination, ensuring a degree of financial security and predictability.
MINIMUM SURRENDER VALUE. In the case of a full surrender of a Participant's Account prior to the Annuity Date, the value received under the Fixed Subaccounts shall never be less than Purchase Payments allocated to the Fixed Subaccounts, less any amounts transferred to Variable Subaccounts and less any previous partial surrenders.
MINIMUM SURRENDER VALUE. A $1,000 minimum Surrender Value is necessary to elect a Life Distribution Option. For the TSA I, IRA I and GALIC® 2000 (when issued as a qualified annuity), to enroll in the ESP Program, the Annuity Value must equal at least one-half of the flexible premiums paid into the annuity contract. ESP payments under a TSA I, IRA I, or GALIC 2000 will stop if at any time the sum of the current Surrender Value plus payments from your current participation in the ESP Life Distribution Option do not at least equal one-half of the flexible premiums. RESTRICTIONS ON ESP PROGRAM 4. Restrictions on Entry. You may not enter the ESP Program during the first contract year. You may not enter the ESP Program after payments are made under a settlement option. You may enroll in only one ESP Program option, per annuity contract, at any one time. If you discontinue payments when permitted, you may not re-enter the ESP Life Distribution Program for 12 months. 5.
MINIMUM SURRENDER VALUE. The Minimum Surrender Value for the Fixed Account for a given contract year will be determined by: crediting an effective annual rate of interest of 3.0% on the sum of the values of the Fixed Account Subaccounts at the end of each Valuation Period during the Contract Year at a daily rate adjusted for the number of days in each Valuation Period; less the applicable withdrawal charge(s), any prior withdrawals or transfers out of the Fixed Account, and premium taxes (if any).
MINIMUM SURRENDER VALUE. 7 7.06 Assignment . . . . . . . . . . . . . 13