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Exhibit 4(b)(ii)
CHILDREN'S INSURANCE RIDER
RIDER SECTION 1. GENERAL INFORMATION
1.1 WHAT IS OUR AGREEMENT Our agreement with you includes this rider and its
WITH YOU? application, as a part of the policy to which it is
attached. The provisions of the policy apply to this
rider unless they conflict with the rider. If there is a
conflict, the rider provision will apply. The issue date
for this rider is shown on the insured child annual cost
of insurance rate table.
We promise to pay the death proceeds of this rider and
provide all other benefits described in this rider as
long as the policy and this rider are in force.
1.2 WHAT IS THE BENEFIT This rider provides monthly renewable term life insurance
PROVIDED BY THIS RIDER? on the life of any insured child and continues until the
rider anniversary at the insured child's age 23.
1.3 WHO IS THE INSURED CHILD The insured child under this rider is any child,
UNDER THIS RIDER? xxxxxxxxx, or legally adopted child of the person insured
under the policy to which this rider is attached. Any
child born or legally adopted on or before the date of
application must be living, named in the application, and
under age 18 on the date of application. Any child born
alive to, or legally adopted by, the person insured under
the policy to which this rider is attached after the date
of application will be insured. Legal adoption must occur
prior to the child's age 18. Written notice of the
addition of a child or children to this rider should be
sent to our home office.
Although only a single copy of this rider is included
with this policy, the benefit provided by this rider
applies to each insured child.
1.4 CAN THIS RIDER BE We relied on statements made in the application when we
CONTESTED? issued this rider. In the absence of fraud, we will
accept the statements made in the application or
reinstatement application to be representations and not
warranties. Statements made in the application or
reinstatement application will not be used to contest
this rider or challenge a claim under this rider unless
that statement is material.
A statement is material if, based on correct and complete
information, we would have:
a.) denied coverage;
b.) issued the rider at a higher cost of insurance
rate; or
c.) issued the rider on some other basis than
applied for.
If this rider is void as a result of a contest, the cost
you paid for this rider will be refunded to you.
1.5 WHEN DOES THIS RIDER This rider is incontestable after it has been in force
BECOME INCONTESTABLE? during the insured child's lifetime for two years from
its issue date. If this rider is reinstated, it is
incontestable after it has been in force during the
insured child's lifetime for two years from the date of
its reinstatement. If reinstatement occurs, it may be
contested on the basis of statements made in the
reinstatement application.
1.6 WHAT IF THE INSURED If any insured child's age has been misstated, the amount
CHILD'S AGE HAS BEEN payable will be adjusted to reflect the correct age.
MISSTATED?
If this rider would have ended at an earlier date, we
will refund the rider cost paid beyond the correct rider
termination date, without interest. If this rider would
not have been issued, it will be deemed void from the
start. It will be treated as if it had not been issued
and any rider cost paid will be refunded, without
interest.
1.7 IS THERE A SUICIDE Suicide by an insured child, whether sane or insane,
EXCLUSION? within two years of this rider's issue date or
reinstatement date is not covered by this rider. If an
insured child dies by suicide during this two year
period, we will refund, without interest, any rider cost
paid for the period of time during which the child was
the only insured child covered under this rider.
1.8 WHEN WILL THIS RIDER This rider will terminate on the earliest of:
TERMINATE?
a.) the lapse or termination of the policy;
b.) the rider anniversary at age 65 of the person
insured under the policy to which this rider is
attached; or
c.) the date you choose to end this rider. You may
end it by written request.
RIDER SECTION 2. RIDER INSURANCE CHARGES
2.1 WHAT IS THE COST OF THIS The cost of this rider is paid as part of the insurance
RIDER? charges for the policy to which it is attached. The cost
for this rider is payable until the rider terminates.
2.2 HOW IS THE COST FOR THIS The cost for this rider is based on the cost of insurance
RIDER DETERMINED? rate schedule and the rider specified amount.
RIDER SECTION 3. RIDER SPECIFIED AMOUNT
3.1 WHAT IS THE SPECIFIED The rider specified amount is shown on the policy data
DEATH BENEFIT AMOUNT page and on the insured child annual cost of insurance
PROVIDED BY THIS RIDER? rate table.
The specified amount is based on the number of units of
children's insurance.
RIDER SECTION 4. RIDER DEATH PROCEEDS
4.1 WHEN ARE RIDER DEATH Rider death proceeds are payable while this rider is in
PROCEEDS PAYABLE? force in the event of the insured child's death. The
insured child's death must occur on or before the policy
anniversary at the insured child's age 23.
4.2 WHAT ARE THE RIDER DEATH The rider death proceeds will be the rider specified
PROCEEDS? amount based on the age of the insured child, as follows:
a.) live birth to age 15 days
(360 hours) $250 per unit
b.) age 15 days to age 6 months $500 per unit
c.) age 6 months to the policy/
rider anniversary at the
insured child's age 23 $1,000 per unit
If the death of any insured child occurs during a grace
period, the insurance charges for the policy will be
deducted from the rider death proceeds.
4.3 HOW WILL THE RIDER DEATH The rider death proceeds will be payable to the
PROCEEDS BE PAID? beneficiary, as stated in the application for this rider,
when we receive proof satisfactory to us that the insured
child died while this rider was in force. The insured
child's death must occur on or before the policy
anniversary at the insured child's age 23. Rider death
proceeds will be paid according to the provisions of the
policy.
4.4 IS THERE A PAID-UP If the person insured under the policy to which this
BENEFIT UPON THE DEATH OF rider is attached dies, this rider terminates and no
THE PERSON INSURED UNDER further premium payments will be required. Each insured
THE POLICY TO WHICH THIS child will then be issued and become owner of a paid-up
RIDER IS ATTACHED? term insurance policy. The paid-up term insurance will be
the same amount as provided under this rider as if this
rider had not terminated. The paid-up insurance will
expire on the date which would have been the policy
anniversary at the insured child's age 23.
The paid-up term insurance has cash value. The cash value
at any time will equal the then present value of future
benefits provided to each insured child. These present
values are based on the CSO Mortality Table then in
effect, assuming:
a.) interest at 4.5% per year compounded annually;
b.) death benefits payable immediately upon death; and
c.) ages as determined on a last birthday basis.
A statement of such cash values will be furnished upon
request.
The cash value of the paid-up term insurance may be
surrendered at any time by written request.
RIDER SECTION 5. CONVERSION PRIVILEGE
5.1 CAN THIS RIDER BE The insurance coverage provided by this rider on an
CONVERTED TO A NEW insured child may be converted to a new policy while this
POLICY? rider is in force provided:
a.) your written request is made for an insured
child on the policy anniversary at the insured
child's age 23, or the expiration date of this
rider, if earlier; rider expiration date
b.) all cost due on this rider has been paid; and
c.) the new policy is a permanent life insurance
policy we are then issuing.
The suicide and incontestability provisions of the new
policy will be measured from the issue date of this
rider.
5.2 WHAT IS THE AMOUNT OF The amount of insurance for the new policy issued will be
INSURANCE FOR THE NEW $5,000 per unit of children's insurance. An insured child
POLICY? may increase the amount of insurance for the new policy
by providing evidence of insurability satisfactory to us.
The suicide and incontestability provisions for any
increase will be measured from the date of the increase.
5.3 WHAT IS THE EFFECTIVE The effective date of the new policy will be the monthly
DATE OF THE NEW POLICY? processing day on or following receipt of your written
request in our home office.
5.4 WHAT BASIS WILL BE USED The premium for the new policy will be based on the
TO DETERMINE THE PREMIUM insured child's age at conversion, gender (if the new
FOR THE NEW POLICY? policy is based on male or female cost of insurance
rates), and rating class as of the date this rider was
issued.
5.5 WILL EVIDENCE OF Evidence of insurability will not be required to convert
INSURABILITY BE REQUIRED? existing coverage. However, if any riders are requested
with the new policy, we will require evidence of
insurability satisfactory to us for the additional
coverage.
RIDER SECTION 6. DIVIDENDS
6.1 WILL THIS RIDER RECEIVE While this rider is in force, it will share in our
DIVIDENDS? divisible surplus. We will determine once a year if any
dividends are payable on this rider. Any dividends will
be combined with and applied using the same method
selected for the policy. We do not anticipate any
dividends to be paid on this rider.
CUNA Mutual Insurance Society
A Mutual Insurance Company
/s/ Xxxx Xxxx
President
INSURED CHILD ANNUAL COST OF INSURANCE RATE TABLE
CHILDREN'S INSURANCE RIDER
INSURED: Children SPECIFIED AMOUNT: 10 Units
(See Section 4 of this rider)
ISSUE DATE: January 15, 2000
EXPIRATION DATE: January 15, 2030 ANNUAL COST OF INSURANCE*: [$90.00]
* Monthly cost of insurance calculations will use one-twelfth of the annual
cost of insurance.
