Common use of REQUIRED DISTRIBUTION UPON DEATH Clause in Contracts

REQUIRED DISTRIBUTION UPON DEATH. If you die after distribution of your entire interest has commenced, the remaining portion of such interest will continue to be distributed at least as rapidly as under the method of distribution being used immediately preceding your death. If you die before distribution has commenced, or distribution has commenced for only a portion of your interest, the Death Benefit must be distributed no law than December 31 of the calendar year in which the fifth anniversary of your death occurs. However, proceeds which are payable to a Beneficiary who is a natural person may be distributed in substantially equal installments over his or her lifetime or a period certain not exceeding the life expectancy of the Beneficiary provided such distribution commences not later than December 31 of the calendar year following the calendar year in which your death occurred. If the sole Beneficiary is your surviving spouse, he or she may elect no later than December 31 of the calendar year in which the fifth anniversary of your death occurs to receive equal or substantially equal payments over his or her life expectancy commencing at any date prior to the date on which you would have attained age 70 1/2. Payments shall be calculated in accordance with IRC Sections 401(a)(9), 403(b)(10) and the regulations thereunder.

REQUIRED DISTRIBUTION UPON DEATH. If you die after distribution of your entire interest has commenced, the remaining portion of such interest will continue to be distributed at least as rapidly as under the method of distribution being used immediately preceding your death. If you die before distribution has commenced, or distribution has commenced for only a portion of your interest, the Death Benefit must be distributed no law than December 31 of the calendar year in which the fifth anniversary of your death occurs. However, proceeds which are payable to a Beneficiary who is a natural person may be distributed in substantially equal installments over his or her lifetime or a period certain not exceeding the life expectancy of the Beneficiary provided such distribution commences not later than December 31 of the calendar year following the calendar year in which your death occurred. If the sole Beneficiary is your surviving spouse, he or she may elect no later than December 31 of the calendar year in which the fifth anniversary of your death occurs to receive equal or substantially equal payments over his or her life expectancy commencing at any date prior to the date on which you would have attained age 70 1/2. Payments shall be calculated in accordance with IRC Sections 401(a)(9)Alternatively, 403(b)(10) your surviving spouse may continue the contract as Owner. If you die either before or after distributions have commenced, and your surviving spouse chooses to continue the regulations thereundercontract, all contract provisions will apply to him or her as if he or she were the original Owner.