OPTIONS DESCRIBED Sample Clauses
The "OPTIONS DESCRIBED" clause defines and outlines the specific choices or alternatives available to the parties within the agreement. It typically lists the various options, such as methods of payment, delivery terms, or service levels, and clarifies the conditions under which each option may be selected or exercised. By clearly describing the available options, this clause ensures that both parties understand their choices and the implications of each, thereby reducing ambiguity and potential disputes over what is permitted or required under the contract.
OPTIONS DESCRIBED. When we use the word Annuitant in the following paragraphs we mean the Annuitant for whom the annuity described was chosen and who is to receive payment under the annuity. For an Annuitant, the first payment under these options will be made on the Annuity Date. For a Payee, unless a later date is requested, the first payment will be made on the first day of the earliest calendar month on or after the day we have received the request for the payout and due proof of the Annuitant's death and such claim forms and other evidence as may be satisfactory to us. Here are the options we offer. We may also consent to other arrangements. OPTION 1 (INSTALLMENTS FOR A FIXED PERIOD) We will make equal payments for up to 25 years. The Option 1 Table shows the minimum amounts we will pay. OPTION 2 (LIFE INCOME) We will make monthly payments for as long as the person on whose life the payout is based lives, with payments certain for 120 months. The Option 2 Table shows the minimum amounts we will pay. OPTION 3 (INTEREST PAYMENT) We will hold an amount at interest at the rate indicated below. At your choice, we will pay the interest annually, semi-annually, quarterly, or monthly. OTHER PAYOUT OPTIONS We may offer other payout options. Contact one of our representatives or one of our offices for information. WHEN NO OPTION CHOSEN If no choice takes effect on the Annuity Date, payout under Option 3 (Interest Payment Option) will become effective. INTEREST RATE Payments under any of the options will be calculated assuming an effective interest rate of at least 3% a year. We may include more interest.
OPTIONS DESCRIBED. When we use the word annuitant in the following paragraphs we mean the annuitant for whom the annuity described was chosen and who is to receive settlement under the annuity. For an annuitant, the first payment under these options is due on the Annuity Date. For a Payee, unless a later date is requested, the first payment will be due on the first day of the earliest calendar month on or after the day the Service Office has received the request for the settlement and due proof of the annuitant's death and such claim forms and other evidence as may be satisfactory to us. Here are the options we offer. We may also consent to other arrangements. LIFE INCOME OPTION.--You may choose monthly payments for as long as the annuitant lives, with 120 monthly payments certain. INTEREST PAYMENT OPTION.--We will hold an amount at interest. We will pay interest at an effective rate of at least 3% a year ($30.00 annually, $14.89 semi-annually, $7.42 quarterly or $2.47 monthly per $1,000). We may pay more interest. SUPPLEMENTAL LIFE ANNUITY OPTION.--You may choose to receive the proceeds of this contract in the form of payments like those of any annuity or life annuity we then regularly issue that (1) is based on United States Currency; (2) is bought by a single sum; (3) does not provide for dividends; and (4) does not normally provide for deferral of the first payment. For purposes of this option only, the words we, our and us include our subsidiary company, Pruco Life Insurance Company, which has agreed to make settlements under this option. The proceeds of this contract might be subject to a withdrawal charge if paid as a lump sum. If so, we will apply that charge pro-rata to any portion of the proceeds not placed under this option. For the amount placed under this option on any date, any annuity payment will be at least 100% of what we would pay under the chosen kind of annuity with its first payment due on its contract date. The phrase regularly issue does not include contracts that are used to qualify for special federal income tax treatment as a retirement plan unless this contract has been issued as part of such a plan. At least one of the persons on whose life this option is based must be a Payee. This option cannot be chosen more than 30 days before the due date of the first payment. On request, we will quote the payment that would apply for any amount placed under the option at that time. RESIDUE DESCRIBED.--For the Life Income Option and the Supplemental Life Ann...