Single Premium Payment Clause Samples
The Single Premium Payment clause requires the policyholder or contract party to make a one-time, lump-sum payment to fulfill their financial obligation under the agreement. Instead of spreading payments over multiple installments, the entire premium is paid upfront at the start of the contract, commonly seen in certain insurance policies or annuity contracts. This approach simplifies administration, ensures immediate full coverage or benefits, and eliminates the risk of missed payments, thereby providing certainty and convenience for both parties.
Single Premium Payment. SINGLE PREMIUM PAYMENT Your Single Premium Payment is shown on the Contract Schedule. Any taxes related to the premium payment are deducted by the Company and the balance (the "Net Single Premium") is available for allocation between Fixed and Variable Annuity Income. ALLOCATION OF THE PREMIUM You, the Owner, determine the initial allocation of the Net Single Premium between Fixed and Variable Annuity Income. The allocation is shown on the Contract Schedule and will remain in effect until changed by written notice from the Annuitant. If the initial allocation made at time of purchase has allocated any portion of the Net Single Premium to Variable Annuity Income and the Variable Investment Options, that portion of the Net Single Premium will first be applied solely to the Money Market Division. 16IVIA0403 The Net Single Premium portion will be allocated to the Money Market Division on the later of the following dates:
Single Premium Payment. For annuity contracts that permit one single premium payment, only a single ▇▇▇▇ ▇▇▇ regular contribution (subject to the ▇▇▇▇ ▇▇▇ maximum permissible contribution amount) and/or a single premium qualified rollover contribution (as permitted by IRC Section 408(d)(3)) or a single conversion (as defined in 3(d) below), may be made to this contract. Any such contribution shall be in cash.
Single Premium Payment. For annuity contracts that permit one single premium payment, only a single IRA contribution (subject to the IRA maximum permissible contribution amount) and/or a single premium qualified rollover contribution (as permitted by IRC Sections 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) and 457(e)(16)), or a single premium contribution made in accordance with the terms of a Simplified Employee Pension (SEP) as described in IRC Section 408(k), may be made to this contract. Any such contribution shall be in cash.
Single Premium Payment. This is a single premium annuity. However, the single premium may be paid in one lump sum or in installments anytime prior to the First Annuity Payment Date shown in the Schedule of each Certificate. Any such planned installments must be identified at the time a Certificate is issued and be received by us at our Customer Service Center prior to such First Annuity Payment Date. The Certificate Holder may allocate Premium Payment to Fixed Annuity Payments, Variable Annuity Payments, or a combination thereof. The amount of the premium applied to a Certificate will be the initial premium received as shown in the Certificate Schedule, minus a deduction for Premium Taxes, if any. If any subsequent payments are received after a Certificate Date, but before the First Annuity Payment Date, the initial calculation of Fixed Annuity Payments under a Certificate will be considered an estimate until the First Annuity Payment Date. We may defer acceptance of or return any subsequent Premium Payments received before the First Annuity Payment Date. IU-MP-3000 6 GENERAL PROVISIONS(continued) -------------------------------------------------------------------------------- PREMIUM TAXES We deduct the amount of any premium or other state and local taxes levied by any state or governmental entity when such taxes are incurred. MARKET VALUE ADJUSTMENTS A Market Value Adjustment will be applied to any portion of a Fixed Annuity Payment withdrawn to determine the withdrawal value under the Certificate. The Market Value Adjustment is determined by multiplying the amount withdrawn by the following factor: 1 + I N/365 ------------------------ 1 + J + .0050 - 1 The applicable maturity for Index Rate I is the certain period divided by 2 rounded up to the nearest whole number and the applicable maturity for Index Rate J is the remaining certain period divided by 2 rounded up to the nearest whole number. The calendar month of Index Rate determination for Index Rate I is the month the Certificate was issued or the month of the most recent change (if any) under the Flexible Period Option. The calendar month of Index Rate determination for Index Rate J is the month the transaction is effective. N is equal to the number of days remaining in the certain period, divided by 2. Index Rate The Index Rate is the average of the Ask Yields for the U.S. Treasury Strips as reported by a national quoting service for the applicable maturity. The average is based on the period from the 22nd day of the cal...