Common use of Choices to be Made Clause in Contracts

Choices to be Made. The Contract Holder may tell the Company to apply any portion of the Current Value (minus any premium tax) for an Annuity under Option 2, 3, or 4 (see 4.08). This election must be made in a form acceptable to us within the 90 day period ending on the date payments are to begin. A Contract Holder may revoke an election at any time prior to the date the payments start. In lieu of the election of an Annuity, the Contract Holder may tell us to make a lump sum payment. When an Annuity Option is chosen, we must also be told if payments are to be made other than monthly and whether to pay: (a) A Fixed Annuity using the General Account; (b) A Variable Annuity using any of the Fund(s) made available by us for Annuity purposes; or (c) A combination of (a) and (b). If a Fixed Annuity is chosen, the Company guarantees that interest will be credited at an annual equivalent yield that is at least equal to the annual rate percentage shown on the Contract Schedule. We may add interest daily at any higher rate. If a Variable Annuity is chosen, an Assumed Annual Net Return Rate of 5% may be elected. If not elected, we will use an Assumed Annual Net Return Rate of 3.5%.