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EFFECT ON AMOUNT OF LIFE INSURANCE. "Remaining Life Insurance" means the amount of Personal Life Insurance which remains in force on the Insured Person's life after a Living Benefit is paid. The Remaining Life Insurance will equal: • (1) the Insured Person's amount of Personal Life Insurance which was used to determine the Living Benefit (A or B on the prior page); minus (2) any percentage by which the Insured Person's coverage is scheduled to reduce, due to age; if the reduction occurs more than 12 months after the Living Benefit is paid, and while he or she is still living; minus (3) the amount of the Living Benefit withdrawn (including the early withdrawal fee retained by the Company). CONDITIONS. If the Insured Person exercises the Conversion Privilege after a Living Benefit is paid, the amount of the conversion policy will not exceed the amount of his or her Remaining Life Insurance. If the Insured Person has Accidental Death and Dismemberment benefits under this Policy, the Principal Sum will not be affected by the payment of a Living Benefit. EFFECT ON DEATH BENEFIT. When the Insured Person dies after receiving a Living Benefit, the amount of Remaining Life Insurance in force on the date of death will be paid as a Death Benefit. Payment will be made in accord with the Beneficiary section of this Policy. If the Insured Person dies after applying for a Living Benefit, but before the Company has made payment; then the request will be void and no Living Benefit will be paid. The amount of Personal Life Insurance in force on the date of death will be paid in accord with the Beneficiary section of this Policy. EFFECT ON TAXES AND GOVERNMENT BENEFITS. Any Living Benefit amount withdrawn may be taxable income to the Insured Person. Receipt of the Living Benefit may also affect the Insured Person's eligibility for Medicaid, Supplemental Security Income and other government benefits. The Insured Person should consult his or her own tax and legal advisor before applying for a Living Benefit. The Company is not responsible for any tax owed or government benefit denied, as a result of the Living Benefit payment. LIMITATIONS. No Living Benefit will be paid: •(1) if this Policy does not include an Extension of Death Benefit provision; (2) if any required premium is due and unpaid; (3) on any Dependent Life Insurance under this Policy; (4) on any conversion policy purchased in accord with the Conversion Privilege; (5) without the written approval of the bankruptcy court, if the Insured Person has filed for bankruptcy; (6) without the written consent of the beneficiary, if the Insured Person has named an irrevocable beneficiary; (7) without the written consent of the assignee, if the Insured Person has assigned his or her rights under this Policy; (8) if any part of the Personal Life Insurance must be paid to the Insured Person's child, spouse or former spouse; pursuant to a legal separation agreement, divorce decree, child support order or other court order; (9) if the Insured Person is Terminally III due to a suicide attempt, while sane or insane; or due to an intentionally self- inflicted injury; (10) if a government agency requires the Insured Person to use the Living Benefit to apply for, receive or continue a government benefit or entitlement; or (11) if the Insured Person has previously received a Living Benefit under this Policy. • GL1101 -9.7 LB 14 05/01/01