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EXHIBIT (5)(j)
RIDER
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SPOUSE'S
PAID-UP
INSURANCE
PURCHASE
OPTION
(SPPO)
DEFINITIONS Any reference to an insured under this rider includes both the
Insured under the basic policy and any Other Covered Insured under any Term
Insurance on Other Covered Insured rider attached to this policy.
BENEFIT If this rider is in effect at an Insured's death, the person who at that
time is that Insured's spouse, has the right to purchase, without proof of
insurability, a level amount of new paid-up life insurance on his or her own
life, in accordance with the provisions of this rider. That Insured's spouse
must be a beneficiary to whom all or part of the life insurance proceeds
resulting from that Insured's death under this policy or its riders will be
payable in one sum.
HOW MUCH INSURANCE MAY BE PURCHASED The largest amount of paid-up life insurance
which may be purchased is the amount of the insurance proceeds, applicable to
that Insured, which is payable in one sum, to that Insured's spouse who is the
beneficiary. The amount of insurance refers to amounts provided by the basic
plan of insurance and/or by any Term Insurance on Other Covered Insured rider
attached to the policy, plus any insurance (excluding accidental death benefits)
from riders or dividends and which is payable in one sum (prior to deducting any
unpaid loan). However, the amount of paid-up insurance which may be purchased
will be reduced by any increase in the life insurance benefit resulting from any
unscheduled premiums paid under the basic policy during the 24 month period
prior to the date of the Insured's death.
In addition, the actual amount which can be purchased on any one person must
meet our minimum amount requirements.
The maximum amount of insurance which can be purchased on any one person can
never be greater that the lesser of: (a) the amount which can be purchased by
the life insurance proceeds (prior to deducting any unpaid loan) which the
Insured's spouse is entitled to receive in one sum because of that Insured's
death, or (b) 5 million dollars.
PREMIUM FOR NEW INSURANCE The single premium rate for the new paid-up life
insurance is based on the spouse's age and sex on the date the new insurance
takes effect. This rate will not be more than 105% of the net single premium for
paid-up life insurance, defined in the Values provision of this rider.
PURCHASE OF NEW INSURANCE The Insured's spouse can apply to purchase the new
paid-up life insurance before we have paid life insurance proceeds under the
policy to him or her. However, he or she must apply within the 90 days after the
Insured's death.
The new paid-up life insurance will be available in a policy issued by New York
Life Insurance Company or by one of its affiliated companies. It will have the
same provisions as are in the series of policies being issued by the new
Insuring company on its policy date.
The paid-up life insurance will take effect on the date when all three of the
following events have taken place:
1. The spouse's signed application is received by us while he
or she is living.
2. We determine the life insurance proceeds payable to the
spouse.
3. The entire single premium for the paid-up life insurance
purchased under this rider has been received by us.
We will reduce the life insurance proceeds in Item 2 to pay the single premium
for the paid-up life insurance. If these proceeds are not sufficient to pay that
entire single premium, then the balance of that premium must be paid to us
before any such insurance will take effect.
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SPOUSE'S
PAID-UP
INSURANCE
PURCHASE
OPTION
(CONTINUED)
It may happen that an Insured's spouse, who has the right to apply for paid-up
life insurance under this rider, dies at the same time as that Insured, or
within 90 days after that date and before that paid-up insurance takes effect.
In these cased, provided the Insured's spouse's death did not result from
suicide, while sane or insane, we will pay the maximum amount of paid-up life
insurance that the spouse could have applied for under this rider, less the
applicable single premium for that insurance.
The beneficiary for any paid-up life insurance payable under a policy issued in
connection with this rider will be the estate of that Insured's spouse, unless
stated otherwise in the policy for that insurance.
AVAILABILITY OF RIDERS Riders may not be included with the new paid-up life
insurance.
SUICIDE EXCLUSION Suicide of the Insured's spouse, while sane or insane, within
two years after the date of the Insured's death, is not covered by this rider.
In the event of the spouse's suicide within that two year period, any single
premium paid for any new paid-up life insurance will be refunded.
VALUES The new paid-up life insurance has cash value and loan value, and is
eligible for dividends. However, it is not expected that any dividends will be
payable on this insurance.
The net single premiums and the cash values for the paid-up insurance are based
on the 1980 CSO Tables of Mortality. Continuous functions are used. Interest is
compounded each year at 4%.
CONTRACT The rider is made a part of the policy to which it is attached at issue
of the policy. If added to a policy which already in force, this rider is made a
part of that policy, based on the application for the rider.
INCONTESTABILITY OF RIDER We will not contest this rider if it is attached at
issue of the policy.
If this rider is added to a policy which is already in force, we will not
contest the rider after it has been in force during the lifetime of the Insured
for 2 years from the date of issue of the rider.
DATES This rider and the basic policy have the same date of issue, unless the
rider is added to a policy which is already in force. In this case, the date of
issue of this rider is shown in an add-on rider which we put in the basic
policy.
WHEN RIDER ENDS You can cancel this rider as of any date. To do this, a signed
notice must be sent to us within 31 days of that date. This rider ends if the
basic policy ends, is surrendered, or is exchanged for a new policy.
NEW YORK LIFE INSURANCE AND
ANNUITY CORPORATION
By
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