Premiums and Renewal

783 Words2 Pages

PREMIUMS AND RENEWAL

Paying Premiums

The Initial Premium is due on the Policy Effective Date. Premium payments that purchase additional Paid-Up Value may be made at any time until the Policy converts to Final Paid-Up Status. Premium purchases during a Policy Year cannot exceed the Maximum Annual Premium. Subject to the Grace Period provision, the Policy will convert to Final Paid-Up Status at the end of a Buy-Up Period during which You have not paid at least the Minimum Purchase Premium. The Factors used to determine the Paid-Up Value a premium purchases are subject to change as described below and on the first page of the Policy. Premiums are payable to Us. Your Schedule shows the: Initial Premium; Minimum Purchase Premium; Buy-Up Period; and Maximum Annual Premium.

Notifying Us of Changes

You are responsible for notifying Us if an automatic method of premium payment changes. You must notify Us within 30 days of the effective date of the change. If payments are being made through electronic funds transfer or other automatic payment methods, and the payment cannot be accomplished for any reason, We will bill You directly.

Premium Factor Changes

As stated on the first page of this Policy, We have a limited right to change the Purchase Factors used to computer the Paid-Up Value a premium payment will purchase. Premiums for the purchase of Paid-Up Value are based on Your age when they take effect. Purchase Factors will not change due to a change in Your health, or use of benefits. Purchase Factors may change on a class basis; and only as applicable to future purchases. Purchase Factors changes may be implemented due to:

- a change in benefits or terms of coverage. This includes any such changes required by any law, regu...

... middle of paper ...

... Against Unintentional Lapse

You have the right to designate at least one person, in addition to Yourself, who is to receive notice of lapse for non-payment of premium during a Buy-Up Period. You may change this designation at any time. To do so, You must notify Us in writing. Every two (2) years We will remind You in writing of this right.

Right to Lower Minimum Premium Requirements

You have the right, at any time, to reduce planned future purchase premiums. To do that You do not need to notify Us, but must pay at least the Minimum Purchase Premium during the Buy-Up Period. You will not be required to provide proof of good health.

The premium reduction will not result in a change in the Purchase Factor used to calculate Paid-Up Value additions. A reduction in the premium paid for future purchases will not affect previous amounts of Paid-Up Value.

Open Document