Common use of Monthly Deduction Clause in Contracts

Monthly Deduction. On the first day of each policy month until age 100 of the younger Insured, the Company will make a Monthly Deduction for that policy month from the Cash Value of this Policy. The amount of the Monthly Deduction for a policy month is equal to: - The cost of insurance and the cost of any riders for the policy month; PLUS - An amount not greater than the Maximum Monthly Policy Fee shown in Section 1; PLUS - An amount not greater than the Maximum Monthly Mortality and Expense Risk Charge shown in Section 1; PLUS - An amount not greater than the Maximum Monthly Administrative Charge shown in Section 1. At and after age 100 of the younger Insured the Cash Value of the Policy will be calculated as described in the Cash Value of the Policy Section, except that the Monthly Deductions will be equal to zero. If the Policy meets the Monthly Minimum Premium test (see below) or if a Guaranteed Death Benefit Rider is attached and the No Lapse Guarantee Benefit is in effect, the Monthly Deduction will be made, whether or not premiums are paid, until the Cash Value equals zero. Otherwise, the Monthly Deduction will be made, whether or not premiums are paid, as long as the Net Cash Value is sufficient to cover the entire Monthly Deduction. This provision will not continue any rider beyond the termination date as provided in the rider. The Monthly Deduction will be deducted from the sub-accounts and the Fixed Account in the same proportion as the Cash Value of the Policy is in the sub-accounts and the Fixed Account unless you choose in writing to have Monthly Deductions deducted: from a specific sub-account or the Fixed Account until the Policy's portion of that sub-account or of the Fixed Account equals zero; and then from the remaining sub-accounts and the Fixed Account in the same proportion as the Cash Value of the Policy is in the sub-accounts and the Fixed Account. 50 NEV-18-E COST OF INSURANCE The monthly cost of insurance for the Policy is equal to: the amount at risk; times the cost of insurance rate per $1,000 for that month divided by 1,000. The amount at risk is equal to: - The Death Benefit on the first day of the policy month discounted at the monthly equivalent of 4% per year; - The Cash Value on the first day of the policy month after the Monthly Deduction has been processed. COST OF INSURANCE RATES The cost of insurance rates for each policy year are based on: the sexes of the Insureds; the underwriting classes of the Insureds; and the ages of the Insureds on the first day of the policy year. The rates will be set by the Company each year on the policy anniversary, based on the expectations of the Company as to future experience. The Table of Guaranteed Insurance Factors per $1,000 (see Section 2) shows the maximum guaranteed factor for each policy month which starts on the Policy Date or a policy anniversary. The factors between anniversaries vary monthly based on uniform distribution of deaths throughout the policy year. MONTHLY DEDUCTION ADJUSTMENT AT DEATH The portion of any Monthly Deduction made for a period beyond the date of the Last Death will be added to the policy proceeds. If the Last Death occurs during the grace period, the Amount Due (see Grace Period Provision below) will be deducted from the policy proceeds to cover Monthly Deductions to the date of the Last Death.

Monthly Deduction. Monthly Deduction On the first day of each policy month until age 100 of the younger Insuredmonth, whether or not premiums are paid, the Company will make a Monthly Deduction for that policy month from the Cash Value of this Policy. The amount of the Monthly Deduction for a policy month is equal to: - . The cost of insurance and the cost of any riders for the policy month; PLUS - . An amount not greater than the Maximum Monthly Policy Fee shown in Section 1; PLUS - An amount not greater than the Maximum Monthly Mortality and Expense Risk Charge shown in Section 1; PLUS - . An amount not greater than the Maximum Monthly Administrative Charge shown in Section 1. At and after age 100 of the younger Insured the Cash Value of the Policy will be calculated as described If either Minimum Guaranteed Death Benefit is in the Cash Value of the Policy Section, except that the Monthly Deductions will be equal to zero. If effect or if the Policy meets the Monthly Minimum Premium test (see below) test, whether or if a Guaranteed Death Benefit Rider is attached and the No Lapse Guarantee Benefit is in effectnot premiums are paid, the Monthly Deduction will be made, whether or not premiums are paid, until the Cash Value equals zero. Otherwise, the Monthly Deduction will be made, whether or not premiums are paid, as long as the Net Cash Value is sufficient to cover the entire Monthly Deduction. This provision will not continue the Policy beyond the Maturity Date; nor will it continue any rider beyond the termination date as provided in the rider. The Monthly Deduction will be deducted from the sub-accounts and the Fixed Account in the same proportion as the Cash Value of the Policy is in the sub-accounts and the Fixed Account unless you choose in writing to have Monthly Deductions deducted: from a specific sub-account or the Fixed Account until the Policy's portion of that sub-account or of the Fixed Account equals zero; and then from the remaining sub-accounts and the Fixed Account in the same proportion as the Cash Value of the Policy is in the sub-accounts and the Fixed Account. 50 NEV-18-E COST OF INSURANCE Cost of Insurance The monthly cost of insurance for the Policy is equal to: the amount at risk; times the cost of insurance rate per $1,000 for that month divided by 1,000. The amount at risk is equal to: - . The Death Benefit on the first day of the policy month discounted at .3273745%, the monthly equivalent of 4% per year; - LESS . The Cash Value on the first day of the policy month after the Monthly Deduction has been processed. COST OF INSURANCE RATES Cost of Insurance Rates The cost of insurance rates for each policy year are based on: the sexes of the Insureds; the underwriting classes of the Insureds; and the ages of the Insureds on the first day of the policy year. The rates will be set by the Company each year on the policy anniversary, based on the expectations of the Company as to future experience. The rates are guaranteed for one year. The Table of Guaranteed Maximum Cost of Insurance Factors Rates per $1,000 (see Section 2) shows the maximum guaranteed factor rate for each policy month which starts on the Policy Date or a policy anniversary. The factors rates between anniversaries vary monthly based on the assumption of uniform distribution of deaths throughout the policy year. MONTHLY DEDUCTION ADJUSTMENT AT DEATH The cost of insurance rates for each policy year for the initial Face Amount and for each increase in Face Amount are based on: the sex of the Insured; the underwriting class of the Insured; and the age of the Insured on the first day of the policy year. Monthly Deduction Adjustment At Death The portion of any Monthly Month Deduction made for a period beyond the date of the Last Death death will be added to the policy proceedsproceeds unless this amount has already been included in the Death Benefit as described in (c) in Section 10. If the Last Death occurs Insured dies during the grace period, the Amount Due (see Grace Period Provision below) an amount will be deducted from the policy proceeds to cover Monthly Deductions to the date of death. Grace Period Unless either Minimum Guaranteed Death Benefit is in effect or the Last DeathPolicy meets the Monthly Minimum Premium test, if the Net Cash Value on the first day of a policy month is not enough to cover the Monthly Deduction for that month, the Company will mail a premium notice to you and any assignee at the addresses on record with the Company. There is a grace period of 62 days from the date when the Monthly Deduction was due in which to pay a premium large enough to permit the Monthly Deduction to be made. The insurance remains in force during the grace period. If the premium remains unpaid at the end of its 62-day grace period, the Policy will lapse without value. Any riders will also lapse without value unless otherwise stated in the rider. Monthly Minimum Premium The Company will do the following comparison on the first day of each policy month during the first three policy years unless: the Face Amount has been increased; or the Policy has been lapsed; or this Policy is the result of the exercising of a Change to a New Insured rider. The Company will compare (a) to (b), where: (a) equals the total of the Monthly Minimum Premiums for the Policy from the Policy Date to that policy month; and (b) equals the total premiums paid to date less all partial surrenders and any Policy Loan Balance at that time. If (b) is greater than or equal to (a), the Policy will not be lapsed if the Net Cash Value on the first day of the policy month is not enough to cover the Monthly Deduction due for that month. 1.) This Premium will be recalculated when: the Face Amount is decreased; the amount provided by riders attached to this Policy is changed; a partial surrender is made which results in a decrease in Face Amount; or the underwriting class of this Policy and its riders is changed to a more favorable underwriting class. Minimum Guaranteed Death Benefits This Policy provides two Minimum Guaranteed Death Benefits: Benefit A; and Benefit B. On the first day of each policy month the Company will determine if either Benefit is in effect unless: "NOT ELIGIBLE" is shown for the Guaranteed Death Benefit Premiums in Section 1 (see below); or a Policy Loan exists. If either Benefit is in effect, the Policy will not be lapsed even if the Net Cash Value on the first day of the policy month is not enough to cover the full Monthly Deduction due for that month. If the Insured dies while either Benefit is in effect, the Death Benefit of the Policy will be based on the Death Benefit Option in effect on the date of death. The Guaranteed Death Benefit A Premium and the Guaranteed Death Benefit B Premium are shown in the Policy Schedule. These Premiums will be recalculated when: the Face Amount is increased or decreased; the amount provided by riders attached to this Policy is increased or decreased: a partial surrender which results in a decrease in Face Amount is made; or the underwriting class of this Policy and its riders is changed to a more favorable underwriting class. Recalculation of the Premiums will affect the Tables shown in Sections 4 and 5. When the Company recalculates the Premiums, it will determine if this Policy is still eligible for the Minimum Guaranteed Death Benefits. The Policy will become ineligible for the Guaranteed Death Benefits if, in order to allow the Policy to continue to qualify as a life insurance contract under the Internal Revenue Code either recalculated Premium is less than zero. If the Policy is ineligible for these Benefits, the words "NOT ELIGIBLE" will appear in the Policy Schedule for the Guaranteed Death Benefit A and B Premiums and in the Tables shown in Section 4 and 5.

Monthly Deduction. On the first day of each policy month until age 100 of the younger Insured, the Company will make a Monthly Deduction for that policy month from the Cash Value of this Policy. The amount of the Monthly Deduction for a policy month is equal to: - The cost of insurance and the cost of any riders for the policy month; PLUS - An amount not greater than the Maximum Monthly Policy Fee shown in Section 1; PLUS - An amount not greater than the Maximum Monthly Mortality and Expense Risk Charge shown in Section 1; PLUS - An amount not greater than the Maximum Monthly Administrative Charge shown in Section 1. At and after age 100 of the younger Insured the Cash Value of the Policy will be calculated as described in the Cash Value of the Policy Section, except that the Monthly Deductions will be equal to zero. If the Policy meets the Monthly Minimum Premium test (see below) or if a Guaranteed Death Benefit Rider is attached and the No Lapse Guarantee Benefit is in effect, the Monthly Deduction will be made, whether or not premiums are paid, until the Cash Value equals zero. Otherwise, the Monthly Deduction will be made, whether or not premiums are paid, as long as the Net Cash Value is sufficient to cover the entire Monthly Deduction. This provision will not continue any rider beyond the termination date as provided in the rider. The Monthly Deduction will be deducted from the sub-accounts and the Fixed Account in the same proportion as the Cash Value of the Policy is in the sub-accounts and the Fixed Account unless you choose in writing to have Monthly Deductions deducted: from a specific sub-account or the Fixed Account until the Policy's portion of that sub-account or of the Fixed Account equals zero; and then from the remaining sub-accounts and the Fixed Account in the same proportion as the Cash Value of the Policy is in the sub-accounts and the Fixed Account. 50 NEV-18-E COST OF INSURANCE The monthly cost of insurance for the Policy is equal to: the amount at risk; times the cost of insurance rate per $1,000 for that month divided by 1,000. The amount at risk is equal to: - The Death Benefit on the first day of the policy month discounted at the monthly equivalent of 4% per year; - The Cash Value on the first day of the policy month after the Monthly Deduction has been processed. COST OF INSURANCE RATES The cost of insurance rates for each policy year are based on: the sexes of the Insureds; the underwriting classes of the Insureds; and the ages of the Insureds on the first day of the policy year. The rates will be set by the Company each year on the policy anniversary, based on the expectations of the Company as to future experience. The Table of Guaranteed Insurance Factors per $1,000 (see Section 2) shows the maximum guaranteed factor for each policy month which starts on the Policy Date or a policy anniversary. The factors between anniversaries vary monthly based on uniform distribution of deaths throughout the policy year. MONTHLY DEDUCTION ADJUSTMENT AT DEATH The portion of any Monthly Deduction made for a period beyond the date of the Last Death will be added to the policy proceeds. If the Last Death occurs during the grace period, the Amount Due (see Grace Period Provision below) will be deducted from the policy proceeds to cover Monthly Deductions to the date of the Last Death.