Exhibit 99.26(d)(2)
FAMILY TERM AGREEMENT - CHILDREN
This agreement is a part of the policy to which it is attached and is subject to
all its terms and conditions.
WHAT DOES THIS AGREEMENT PROVIDE?
We will pay the death benefit shown for this agreement on the policy data page
of this policy when we receive proof satisfactory to us that an insured child
died while this agreement is in force. In this agreement, "insured" means the
person insured under the policy; "insured child" means any natural child,
step-child, or legally adopted child of the insured, who is at least 14 days
old, and who:
(1) is named in the application for this agreement and on the date of that
application has not attained his or her 18th birthday; or
(2) is born to the insured after the date of that application; or
(3) is legally adopted by the insured after the date of that application
but before the child's 18th birthday.
The insurance on each insured child is level term insurance which expires on the
policy anniversary on or after that child's 25th birthday. The amount of life
insurance on each insured child is shown on the policy data page.
WHAT IS THE CHARGE FOR THIS AGREEMENT?
The monthly charge for this agreement is shown on the policy data page. Charges
for this agreement are assessed until:
(1) the policy anniversary on or after the youngest insured child's 25th
birthday; or
(2) the death of the last surviving insured child; or
(3) the death of the insured.
If the insured dies before this agreement terminates, the insurance provided by
this agreement will continue for the remainder of its term without further
monthly charges.
WHO WILL RECEIVE THE PROCEEDS FROM THIS AGREEMENT?
We will pay the death benefit to the beneficiary designated for this agreement,
if living; otherwise to the insured if living; otherwise to the legal spouse of
the insured, if living; otherwise to the living person or persons then insured
under this agreement, equally if more than one, or if none, the estate of the
person at whose death payment is to be made.
WHO WILL CONTROL THIS AGREEMENT AT THE INSURED'S DEATH?
If the insured is the owner, at the death of the insured, the legal spouse of
the insured will have complete control of this agreement. At the death of the
legal spouse, or if the insured has no legal spouse, all rights will vest in
each insured child with respect to the insurance then in force under this
agreement on the life of each insured child.
CAN THIS AGREEMENT BE REINSTATED?
If the policy to which this agreement is attached is reinstated in accordance
with its provisions, this agreement may also be reinstated. We will require the
payment of all overdue charges and evidence of insurability satisfactory to us
for all persons then eligible for insurance under this agreement. No benefits
will be paid for the death of an insured child occurring after the expiration of
the grace period on this policy and prior to the date of reinstatement.
IS THIS AGREEMENT SUBJECT TO THE INCONTESTABILITY AND SUICIDE PROVISION OF THE
POLICY?
Yes. Those provisions apply to this agreement. The contestable and suicide
periods will be measured from the effective date of this agreement.
CAN THIS INSURANCE BE CONVERTED TO A NEW POLICY?
Upon termination of the insurance on an insured child, you may convert that
insurance without evidence of insurability to a new policy on that child. We
must receive the application for the new policy and payment of the first premium
at our home office before 31 days after the insurance terminates. The insured
child must be living on the date of conversion.
The new policy must be on a single life permanent policy which we then offer.
Also, the new policy must be within the issue and amount limits for the new
policy. It will be issued as of the date of termination at the risk class then
used for the insured child's age on that date.
If the insurance on an insured child is converted prior to the policy
anniversary on or after the child's 25th birthday, the amount of the new policy
may not exceed the amount of that insurance. If the insurance on an insured
child is converted within 30 days of the policy anniversary on or after the
child's 25th birthday, the amount of the new policy may not exceed 5 times the
amount of that insurance.
We will not require evidence of insurability on the insured child satisfactory
to us unless the new policy is to contain an additional benefit agreement.
However, if this policy contains a waiver agreement, a waiver agreement may be
included in the new policy without evidence of insurability. The waiver
agreement will not cover any disability of the insured child commencing before
the policy date of the new policy.
WHEN DOES THIS AGREEMENT TERMINATE?
This agreement will terminate on:
(1) the date this policy is surrendered or otherwise terminates; or
(2) the date we receive a written request to cancel this agreement; or
(3) the policy anniversary on or after the youngest insured child's age
25; or
(4) the date of death of the last surviving insured child.
This agreement is effective as of the policy date of this policy unless a
different effective date is shown on the policy data page.
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Secretary President
