Common use of Numerical Example Clause in Contracts

Numerical Example. Excess Withdrawals during the Accumulation Phase are illustrated as follows: Covered Fund Value before the Excess Withdrawal adjustment = $50,000 Benefit Base = $100,000 Excess Withdrawal amount: $10,000 Covered Fund Value after adjustment= $50,000 - $10,000 = $40,000 Covered Fund Value adjustment = $40,000/$50,000 = 0.80 Adjusted Benefit Base = $100,000 x 0.80 = $80,000

Numerical Example. Excess Withdrawals during the Accumulation Phase are illustrated as follows: Covered Fund Value before the Excess Withdrawal adjustment = $50,000 Benefit Base = $100,000 Excess Withdrawal amount: $10,000 Covered Fund Value after adjustment= adjustment = $50,000 - $10,000 = $40,000 Covered Fund Value adjustment = $40,000/$50,000 = 0.80 Adjusted Benefit Base = $100,000 x 0.80 = $80,000