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<br />LIVING BENEFIT <br /> <br />BENEFIT. The Living Benefit is an advance payment of part of the Insured Person's Personal Life Insurance. It may be <br />'Jaid to a Terminally III Insured Person, in a lump sum, once during his or her lifetime, To qualify, the Insured Person <br />must: <br />(1 ) <br />(2) <br />(3) <br />(4) <br /> <br />have satisfied the Active Work requirement under this Policy; <br />have been insured under this Policy for at least 12 months; <br />have qualified for the Extension of Death Benefit under this Policy; and <br />have at least $2,000 of Personal Life Insurance under this Policy on the day before the Living Benefit is <br />paid. <br /> <br />Receiving the Living Benefit will reduce the Remaining Life Insurance and the Death Benefit payable at the Insured <br />Person's death, as shown on the next page, <br /> <br />"Terminally III" means the Insured Person has a medical condition which is expected to result in death within 12 months, <br />despite appropriate medical treatment. <br /> <br />APPLYING FOR THE LIVING BENEFIT. To withdraw the Living Benefit, the Insured Person (or his or her legal <br />representative) must send the Company: <br />(1) written election of the Living Benefit, on forms supplied by the Company; and <br />(2) satisfactory proof that the Insured Person is Terminally III, including a Physician's written statement. <br /> <br />The Company reserves the right to decide whether such proof is satisfactory. The Company may have the Insured <br />Person examined, at its own expense, by one or more Physicians of its choice. <br /> <br />Before paying a Living Benefit, the Company must also receive the written consent of any irrevocable beneficiary, <br />assignee or bankruptcy court with an interest in the benefit. (See Limitations 5, 6 and 7.) <br /> <br />AMOUNT OF THE LIVING BENEFIT. The Insured Person may elect to withdraw a Living Benefit in any $1,000 increment; <br />subject to: <br />(1) a minimum of $1,000 or 10% of the Insured Person's amount of Personal Life Insurance (whichever is <br />greater); and <br />(2) a maximum of $100,000 or 50% of the Insured Person's amount of Personal Life Insurance (whichever <br />is less). <br /> <br />To determine the Living Benefit, the Company will use the lesser of A or B below: <br />A. the Insured Person's amount of Personal Life Insurance which is in force on the day before the Living <br />Benefit is paid; or <br />the Insured Person's amount of Personal Life Insurance which would be in force 12 months after that <br />date; if the coverage is scheduled to reduce, due to age, within 12 months after the Living Benefit is <br />paid. <br /> <br />Before making payment to the Insured Person, the Company will reduce the Living Benefit by an early withdrawal fee. <br />This early withdrawal fee will be 12 months' interest at the lesser of: <br />(1) the annual interest rate the Company then charges on policy loans under its nonvariable individual life <br />insurance policies; <br />(2) the annual discount rate any applicable state law then permits for accelerated death benefits under life <br />insurance contracts; or <br />(3) the annual discount rate federal income tax regulations then permit for qualified accelerated death <br />benefits under life insurance contracts. <br /> <br />B. <br /> <br />13 <br /> <br />LB <br />05101/01 <br /> <br />GL1101-9,7 <br />