Common use of Compounding and Crediting of Dividends Clause in Contracts

Compounding and Crediting of Dividends. The compounding and crediting frequency of dividends and the period applicable to each account are disclosed in the Account Schedule above. For dividend-bearing Accounts, dividends will be compounded and credited monthly. The dividend period is monthly, beginning on the first of a month and ending on the last day of the month. For example, the beginning date of the first dividend period of the calendar year is January 1 and the ending date of such dividend period is January 31. All other dividend periods follow this same pattern of dates. The dividend declaration date follows the ending date of a dividend period, and for the example is February 1. If you close your Account before dividends are paid, you will receive the accrued dividends to the date of closure.