Common use of Surrender Charges Clause in Contracts

Surrender Charges. During the Surrender Charge Period, We will deduct a Surrender Charge upon full surrender or Gross Partial Withdrawal Amounts in excess of the Free Withdrawal Amount. A Surrender Charge will not be applied upon death. The Surrender Charge is equal to: 1) The requested amount; less 2) Any Purchase Payments no longer subject to Surrender Charges; less 3) Any available Free Withdrawal Amount; multiplied by 4) The Surrender Charge Percentage The Surrender Charge will be based on the length of time between Purchase Payments and partial withdrawals or surrender. When determining the applicable Surrender Charge, the amount subject to a Surrender Charge will be deducted from Purchase Payments on a First-In, First-Out basis (FIFO). First-In, First-Out is further described in the Partial Withdrawal provision of this Contract. When calculating Surrender Charges, earnings are defined as the excess of the Contract Value over the sum of Remaining Purchase Payments. Any withdrawals will be allocated to Remaining Purchase Payments first on a FIFO basis and second to earnings, if any. In determining what the Surrender Charge is, we do not include earnings, although the actual withdrawal to pay it may come from earnings. For purposes of calculating Surrender Charges, we assume that surrenders and partial withdrawals are made in the following order: 1) First from Purchase Payments no longer subject to a Surrender Charge; 2) Then from the Free Withdrawal Amount on a FIFO basis; 3) Then from Purchase Payments subject to a Surrender Charge on a FIFO basis; and 4) Earnings, if any. The Free Withdrawal Amount and Surrender Charge percentage are shown on the Specifications Page.