Common use of WHAT HAPPENS Clause in Contracts

WHAT HAPPENS. IF THE If the sole owner (who is not also an SOLE OWNER (WHO IS annuitant) dies during the accumulation period, NOT ALSO AN no death benefit will be paid, and the ANNUITANT) DIES annuitant becomes the new owner. DURING THE ACCUMULATION PERIOD? If the new owner (previously the annuitant) is the deceased owner's spouse, the contract may be continued. If the new owner is someone other than the deceased owner's spouse, the surrender value (described in Section 9) must be: a.) distributed in a single sum to the surviving owner within five (5) years of the deceased owner's death; or b.) taken by the surviving owner as payee under one of the income payment options, provided: 1.) payments under the income payout option begin within one (1) year of the deceased owner's death; and 2.) payments are made over the life of the payee or over a period not greater than the payee's life expectancy.

WHAT HAPPENS. IF THE If the sole owner (who is not also an annuitant) SOLE OWNER (WHO IS annuitant) dies during the accumulation period, no death NOT ALSO AN no death benefit will be paid, and the annuitant becomes ANNUITANT) DIES annuitant becomes the new owner. DURING THE ACCUMULATION PERIOD? If the new owner (previously the annuitant) is the PERIOD? deceased owner's spouse, the contract may be continued. If the new owner is someone other than the deceased owner's spouse, the surrender value (described in Section 9) must be: a.) distributed in a single sum to the surviving owner within five (5) years of the deceased owner's death; or b.) taken by the surviving owner as payee under one of the income payment options, provided: 1.) payments under the income payout option begin within one (1) year of the deceased owner's death; and 2.) payments are made over the life of the payee or over a period not greater than the payee's life expectancy.