MAXIMUM ANNIVERSARY definition

MAXIMUM ANNIVERSARY. VALUE The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries, of Contract Values, premium payments and partial surrenders. As of the date We receive notification of Due Proof of Death, We will calculate an Anniversary Value for each Contract Anniversary prior to the decedent's death and 81st birthday. The Anniversary Value is equal to the Contract Value as of a Contract Anniversary, increased by the dollar amount of any premium payments made since that anniversary and reduced by the dollar amount of any partial surrenders since that anniversary. The Maximum Anniversary Value is equal to the greatest Anniversary Value attained from this series of calculations. OPTIONAL DEATH BENEFIT If this contract has an Optional Death Benefit, a charge for the benefit will appear on page 3. The benefit must be applied for at the time of applying for the contract and cannot be discontinued once the contract has been issued. The Optional Death Benefit is the greatest of: a) the Contract Value; or b) 100% of all premium payments made under the Contract, reduced by the dollar amount of any partial surrenders since the Contract Issue Date; or c) the Maximum Anniversary Value, as described above, or d) the Interest accumulation value, as described below. INTEREST ACCUMULATION VALUE Prior to the decedent's death or 81st birthday, the interest accumulation value is equal to total premium payments, less proportional adjustments for partial surrenders, compounded daily at an annual interest rate of 5.0%. The proportional adjustment for partial surrenders is calculated by: a) dividing the gross amount of the partial surrender by the prior day's Contract Value, and b) multiplying the result of (a) by the prior Valuation Day's interest accumulation value. On or after the decedent's date of death or 81st birthday, the interest accumulation value will no longer compound. After that date, the interest accumulation value will be adjusted by adding any subsequent payments and subtracting proportional adjustments, as described above, for partial surrenders. The interest accumulation value will be limited to 200% of all premium payments minus proportional adjustments for partial surrenders. CALCULATION SETTLEMENT OF THE DEATH BENEFIT OF THE DEATH The Death Benefit may be taken in one sum or under any of the BENEFIT settlement options then being offered by Us subject, however, PROVISIONS to the Distribution Requirements below. (CONTINUED) As of the date ...
View Source
MAXIMUM ANNIVERSARY. Value"; and (2) "Premiums Compounded at Benefit Base Rate".
View Source

Examples of MAXIMUM ANNIVERSARY in a sentence

  • ADJUSTMENTS FOR PARTIAL SURRENDERS FOR MAXIMUM ANNIVERSARY VALUES AND PREMIUM PAYMENTS are calculated as follows: For cumulative partial surrenders during each Contract Year that are equal to or less than 10% of premium payments, the adjustment is the dollar amount of the partial surrender.

  • MAXIMUM ANNIVERSARY VALUE -- A value used in determining the death benefit.

  • MAXIMUM ANNIVERSARY VALUE - The highest attained Anniversary Value (defined below) prior to the earlier of the date of death or the decedent's 81st birthday.

  • MAXIMUM ANNIVERSARY VALUE - The highest attained Anniversary Value prior to the earlier of the date of death or the decedent's 81st birthday.

  • MAXIMUM ANNIVERSARY VALUE The Maximum Anniversary Value is based on a series of calculations on Contract Anniversaries, of Contract Values, premium payments and partial surrenders.