Common use of WHAT HAPPENS Clause in Contracts

WHAT HAPPENS. IF AN If an owner dies during the accumulation OWNER DIES DURING period, and there is a surviving owner, no THE ACCUMULATION death benefit will be paid and one of the PERIOD, AND THERE IS A following applies: SURVIVING OWNER? a.) if the deceased owner is not the annuitant, and the surviving owner is the deceased owner's spouse, he or she will become the sole owner and the contract will continue; b.) if the deceased owner is not the annuitant, and the surviving owner is someone other than the deceased owner's spouse, the surrender value (described in Section 9) must be: 1.) distributed in a single sum to the surviving owner within 5 years of the deceased owner's death; or 2.) taken by the surviving owner as payee under one of the income payment options, provided: i.) payments under the income payout option begin within one (1) year of the deceased owner's death; and ii.) payments are made over the life of the payee or over a period not greater than the payee's life expectancy. c.) if the deceased owner is also the sole annuitant, we will pay the death benefit to the beneficiary, as described in Section 10.1.

WHAT HAPPENS. IF AN If an owner dies during the accumulation period, OWNER DIES DURING period, and there is a surviving owner, no death benefit THE ACCUMULATION and there is a surviving owner, no death benefit will be paid and one of the PERIOD, AND THERE IS A following applies: will be paid and SURVIVING OWNER? a.) if the deceased owner is not the annuitant, and the surviving owner is the deceased owner's spouse, he or she will become the sole owner and the contract will continue; b.) if the deceased owner is not the annuitant, and the surviving owner is someone other than the deceased owner's spouse, the surrender value (described in Section 9) must be: 1.) distributed in a single sum to the surviving owner within 5 years of the deceased owner's death; or 2.) taken by the surviving owner as payee under one of the income payment options, provided: i.) payments under the income payout option begin within one (1) year of the deceased owner's death; and ii.) payments are made over the life of the payee or over a period not greater than the payee's life expectancy. c.) if the deceased owner is also the sole annuitant, we will pay the death benefit to the beneficiary, as described in Section 10.110.2.