Contingent Deferred Sales Charge Applicable to a Withdrawal Clause Samples

Contingent Deferred Sales Charge Applicable to a Withdrawal. We will not assess a Contingent Deferred Sales Charge on amounts withdrawn from earnings or on any Free Withdrawal Amount. For the purpose of calculating the Contingent Deferred Sales Charge applicable to a withdrawal, we assume that any amount withdrawn during a contract year will be withdrawn in the following order: • from earnings, which on any Valuation Date equal the Accumulation Value on that date less the total Net Premiums made on or after the Issue Date that have not been previously withdrawn. However, any amounts withdrawn pursuant to the Free Withdrawal Amount will not reduce the total Net Premiums used to calculate earnings; • from Net Premiums that are no longer subject to a Contingent Deferred Sales Charge; • from any applicable Free Withdrawal Amount; and • from Chargeable Premiums on a first-in-first-out basis, that is, any Chargeable Premium withdrawn is deemed to have come first from the oldest Chargeable Premium. A Free Withdrawal Amount may be withdrawn from the contract without incurring a Contingent Deferred Sales Charge. This amount is equal to 10% of Chargeable Premiums minus the aggregate amount of all prior free withdrawals of such Net Premiums under this provision made during the current contract year. The Free Withdrawal Amount is non-cumulative and is only available on a contract year basis. Any Free Withdrawal Amounts not taken during any given contract year cannot be taken as Free Withdrawal Amounts in a subsequent contract year.
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