Common use of Surrender Charges Clause in Contracts

Surrender Charges. If You give up this Policy for its Net Cash Surrender Value or if it ends without value at the end of a Grace Period before the end of the tenth Policy Year, We will subtract a surrender charge from Your Account Value. A table of maximum surrender charges is shown in the POLICY INFORMATION section. An increase in the Face Amount will result in an additional ten year surrender charge applicable to the amount of the increase. The additional surrender charge period will begin on the effective date of the increase. If You request a decrease in the Face Amount before the end of the tenth Policy Year, or within ten years immediately following a Face Amount increase, We will also deduct a pro rata share of any applicable surrender charge from Your Account Value. Decreases in Face Amount will first be applied against the most recent increase in the Face Amount. They will then be applied to prior increases in the Face Amount in the reverse order in which such increases took place, and then to the Initial Face Amount. The amount of any pro rata surrender charge is (a) divided by (b), and multiplied by (c), where: