Super Life Terms and Conditions. Super Life Series

Transcription

1 Super Life Terms and Conditions Super Life Series

2 DEFINITIONS Administrative Office means the Company s office designated as such on the first page of this Policy. Age means the Insured s age at last birthday. Attained Age means the Insured s age as of the Policy Date plus the number of full years since the Policy Date. Basic Face Amount means the amount of insurance that the Policy provides as shown in the Policy Specification Schedule and from which the Death Benefit will be determined. Beneficiary means the person(s) entitled to the Death Benefit of this Policy. Cash Surrender Value means the Policy Account Value-less any applicable surrender charge, loads and processing fees deducted upon surrender. Country of Payment means the country stated in the Policy Specification Schedule. Death Benefit means the amount of money payable to the Beneficiary if the Insured dies while the Policy is in force and other policy conditions herein are met. Excess Premium means any Premium or deposit paid into the Policy which is over and above the aggregate of the Target Premium and Premiums for any Supplementary Contracts in any given Policy Year. Grace Period means the period of time following a Monthly Anniversary during which this Policy will continue in force while the Net Cash Surrender Value is not sufficient to cover the total monthly deduction then due. Guaranteed Return Account (GRA) means a portion of the Account Value established as an investment option available which guarantees a minimum investment yield. This yield is shown on the Policy Specification Schedule. Yield in excess of the guaranteed minimum may be applied in calculation of the GRA value at such increased rates as the Company may determine. Insured means the person whose life is covered by the Policy and is stated in the Policy Specification Schedule. Investment Subaccount or Subaccount means a portion of the Account Value that is an allocation option made available within the Investment Strategies offered under the Policy. Issue Date means the date the Policy is issued. It may be a later date than the Policy Date. Once issued, Policy coverage is retroactive to the Policy Date. The Issue Date is used to measure incontestability and suicide periods and stated in the Policy Specification Schedule. Maturity Date means the Policy Anniversary immediately following the Insured s 85th birthday. Maximum Premium means the maximum premium payment amount the Company will accept at any one time as determined by the Company from time to time. Minimum Premium means the minimum Planned premium payment amount the Company will accept at any one time as determined by the Company from time to time. Monthly Anniversary means the same day as the Policy Date for each succeeding month, except that, for those months not having such a day, it is the last day of that month. Net Cash Surrender Value means the Cash Surrender Value less any Outstanding Loan. Net Premium means a Premium paid less any expense charges deducted from the Premium. Outstanding Loan/Indebtedness means the total amount of policy loans including both principal and accrued interest. Owner means the person who purchased this Policy as shown in the application, unless later changed. The Owner may be someone other than the Insured. Planned Premium means the Premium that the Owner has requested to be regularly incorporated in the premium notice. The Planned Premium is shown in the Policy Specification Schedule. The Maximum Planned Premium will be determined by the Company. The Minimum Planned Premium will be the aggregate of the Target Premium and Premiums for Supplementary Contracts, if any. Policy Account Value or Account Value means the total amounts in the Guaranteed Return Account and the Investment Subaccounts credited to a Policy. Policy Application or Application means a written Application for insurance signed by the Owner to purchase benefits under the Policy and under any Supplementary Contracts attached to the Policy and to choose the initial allocation of Net Premium paid between the Subaccounts. The Policy Application is attached to the Policy and made a part hereof. Policy Anniversary means an anniversary of the Policy Date. Policy Date means the date on which the Policy takes effect. Policy Month means the month commencing with the Policy Date and ending on the day before the first Monthly

3 Anniversary, or any following month commencing with a Monthly Anniversary and ending on the day before the next Monthly Anniversary. Policy means this Variable Universal Life Insurance Policy issued by American Life Insurance Company to the Owner. Policy Specification Schedule means the Schedule issued by the Company stating certain Policy terms and Policy coverage. The policy Specification Schedule is attached to the Policy and made a part thereof. Policy Year means the year commencing with the Policy Date and ending on the day before the first Policy Anniversary, or any following year commencing with a Policy Anniversary and ending on the day before the next Policy Anniversary. Premium means the total amount paid by the Owner in exchange for the Company>s obligations under this Policy. Surrender means an option whereby the Owner voluntarily discontinues his Policy in return for the Cash Surrender Value Target Premium means the Premium amount that corresponds to the Basic Face Amount of the Policy for any specific age at the time the Policy is issued. The Target Premium is stated in the Policy Specification Schedule. Unit Valuation means the process of determining the monetary value of the units in the Investment Subaccounts. Unit Valuation Date means the date, as determined by the Company, on which the units allocated into the Subaccounts of the Policy Account Value, where applicable, are assigned monetary value. 2.0 POLICY PROVISIONS - GENERAL CONDITIONS 2.1 THE CONTRACT, ITS PROVISIONS AND LIMITATIONS This Policy and the application for it, a copy of which is attached hereto and made a part hereof, together with any Supplementary Contracts applied for, which are attached hereto and stated to be a part hereof, constitute the entire Contract. All statements made in applying for the Contract will be deemed, in the absence of fraud, representations and not warranties. No statement will be used to invalidate the Contract nor to defend against a claim under it unless it was contained in the written application. 2.2 MODIFICATION: Only the Chairman of the Board, President, Vice President, Regional Vice President, Actuary, Secretary, or Registrar of the Company can make or modify this Contract, extend the time for payment of any Premium, or waive any of the Company s rights or requirements. 2.3 CHANGE IN PLAN: This Policy may be changed to another plan of insurance with the consent of the Company, subject to such requirements and upon payment of such cost, if any, as the Company shall determine. 2.4 INCONTESTABILITY: This Policy, but not any part hereof granting Disability or Accident Benefits, shall be incontestable after it has been in force, during the lifetime of the Insured, for two years from its Issue Date, except for fraud, wilful misrepresentation or non-payment of Premium(s). In the event, the Owner elects to increase the Basic Face Amount or to reinstate this Policy, the increase or Reinstatement shall be incontestable, under this Policy, after it has been in force, during the lifetime of the Insured, for two years from the effective date of the increase or the Reinstatement except for fraud, wilful misrepresentation or non-payment of Premium(s). 2.5 SUICIDE: If the Insured commits suicide, while sane or insane, within two years from the Issue Date or from the date of any reinstatement of the Policy, the total amount payable under this Contract shall be equal to: The Account Value, as of the Unit Valuation Date immediately following the date that the notification of death of the Insured is received by the Company at its Administrative Office, Plus any deductions made from the Account Value and any expense charges deducted from the Premium, Less any Indebtedness on the Policy and accrued interest thereon If the Insured commits suicide, while sane or insane, within two years from the effective date of an increase in the Basic Face Amount, the total amount payable related to the increase in the Basic Face Amount under this contract shall be equal to: Any deductions made for the cost of insurance which is related to the increase in the Basic Face Amount, However, if the increase in the Basic Face Amount referred to in the previous paragraph became effective within the first two years from Issue Date or from the date of any reinstatement of the Policy, then the total amount payable under this Contract shall be equal to the amount payable under paragraph above. 2.6 AGE: If the age of the Insured is misstated in the application, the amount of proceeds and benefits will be adjusted. The adjustment will reflect the difference between the monthly deductions made and the monthly deductions at the true age. 2.7 OWNERSHIP AND RIGHTS UNDER THIS POLICY: Subject to any statutory restrictions, all rights, privileges and options

4 provided under the Contract not specifically granted to any other person shall be reserved to the Owner alone, if the right to change the Beneficiary has been reserved; otherwise to the Owner and Beneficiary jointly CHANGES IN OWNERSHIP AND BENEFICIARY: At any time during the continuance of this Contract, by submitting a written application satisfactory to the Company, a) The Owner may transfer his entire Ownership to take effect during his lifetime; and b) Unless otherwise provided herein the Beneficiary may be changed, with or without reserving the future right to change the Beneficiary in so far as the laws governing this Policy allow. No such transfer or change will take effect unless recorded by the Company at its Administrative Office, but when so recorded shall become effective as of the date the notice was signed, subject to any payment made or other action taken by the Company before such recording. 2.9 OWNERSHIP OF POLICY BY US CITIZEN I RESIDENT: Notwithstanding anything to the contrary stated in the Policy, if: (a) The Owner becomes a citizen, resident or resident alien of the United States of America or (b) The Ownership of this Policy passes to the Insured following the death of the Owner, and the Insured is a citizen, resident alien of the United States of America, the Owner or the Insured / Owner shall notify the Company as its Administrative Office accordingly. Upon receipt of such notification, the Company will redeem the units in the Investment Sub-accounts, if any, and transfer the proceeds to the GRA. Thereafter, the Investment Sub-accounts will no longer be available under the Policy and the Policy will be endorsed to this effect RIGHT IN EVENT OF DEATH OF OWNER OR BENEFICIARY: The rights of an Owner, other than the Insured, whose death occurs during the continuance of this Contract shall pass to the Insured unless otherwise provided herein. The rights, of a Beneficiary whose death occurs prior to the expiration of a period of fifteen days commencing with the death of the Insured shall pass to the Owner, unless payment has been made to such Beneficiary or unless otherwise provided herein ASSIGNMENT: No assignment of this Policy, or of any interest therein, shall be binding on the Company at its Administrative Office. Any assignment shall be subject to any payment made or other action taken by the Company before the assignment is received and recorded by the Company at its Administrative Office. The Company assumes no responsibility for the validity, effect or sufficiency of any assignment BENEFICIARY: The Beneficiary is as stated in the application, unless later changed. The Beneficiary is entitled to the Death Benefit of this Policy; One or more beneficiaries for the Death Benefit may be named in the application HOW THE BENEFITS ARE PAID AND OTHER WAYS IN WHICH THE PROCEEDS IN THE POLICY MAY BE PAID: The Death Benefit, Net Cash Surrender Value or the Account Value payable on the Maturity Date will be paid immediately in one sum, or in another form of payment available from the Company at that time. Death benefits are only payable by the Company upon delivery to the Company at its Administration Office of this Policy together with satisfactory proof of (a) death of the insured, (b) the age of the Insured (c) the Title of the Claimant and (d) Any other Claim documents required by the Company. (Amended Clause) The whole or part of the proceeds of this Policy may, with the Company s consent, be settled under one of the Optional methods of settlement then made available by the Company TRANSFER OF RESIDENCE: In the event the Owner takes up residence outside the country of payment specified in the Policy Specification Schedule, this Policy may remain inforce through transfer to the Administrative Office. Such transfer will be subject to the Company s approval. All customer services will be provided by the Administrative Office. Premium billings and other notices will be sent to the Owner s new country of residence subject to and conditional upon the Owner paying any taxes or other expenses directly resulting from Premium collection or such transfer; provided however, that no such transfer shall be effected if it would be in violation of any law or Government regulation then in effect. Because local laws and business conditions vary, when a transfer is requested the Company reserves the right to condition any offer to transfer made to the Company upon the Owner agreeing to a change in the Policy plan, and/or Basic Face Amount and/or Premiums payable MAILING ADDRESS: All statements, advices and other written communications to the Owner in connection with this Policy will be mailed to the Owner s address as indicated on the Policy Application. The Owner shall be responsible for advising the Company at its Administrative Office promptly of any change of address. (New Clause) 2.16 NOTICES BY THE OWNER UNDER THE POLICY: The Owner shall notify the Company at its Administrative Office of any Assignment, change in Beneficiary designation, exercise of any right or option or any notice under any clause of this Policy whatsoever relating to this Policy. (New Clause) 3.0 PREMIUMS AND DEDUCTIONS

5 3.1 PREMIUM PAYMENT: The Company will send premium notices to the Owner for the payment of Planned Premium shown in the Policy Specification Schedule. The frequency at which the notice will be sent is also shown in the Policy Specification Schedule. Changes in the frequency and increases and decreases in the amount of Planned Premium payments may be made at any time by the Owner subject to the minimum and maximum amounts acceptable by the Company at that time. 3.2 NET PREMIUM: The Net Premium shall be added to the Account Value of the Policy and allocated between the GRA and the Subaccounts as applied for in writing by the Owner in accordance with Section 3.3 below. Allocation of initial Net Premium shall be effected within 15 days from the date the Company at its Administrative Office receives the Policy receipt from the Owner. Subsequent Net Premiums will be allocated within 15 days of the date of receipt by the Company at its Administrative Office. 3.3 ALLOCATION OF NET PREMIUM: The initial allocation percentages will be as specified in the application for this Policy, a copy of which is attached to this Policy. An allocation percentage may be zero, or in multiples of 10% subject to any minimum amount specified by the Company. The sum of these allocation percentages must be equal to 100%. These percentages may be changed by written application to the Company at its Administrative Office. If, for any reason, no allocation percentage is specified to the Company, the Net Premium will be allocated 100% to the GRA. Unless later changed by written application to the Company at its Administrative Office, initial allocation percentages shall also apply to the subsequent Net Premiums. 3.4 MONTHLY DEDUCTIONS: The Company shall deduct monthly from the Account Value, management expenses or fees as determined by the Company, the cost of life insurance, the extra Premium for substandard risk, if any, and Premium for additional benefits under the Supplementary Contracts or riders, if any, attached to the Policy. The Monthly Deduction will be made from the Account value proportionate to the values in the GRA and Subaccounts in relation to the full Account Value, subject to any minimum amount required in each. The Schedule of expenses, fees and charges shall be determined by the Company from time to time. The Schedule of current expenses and charges is attached to the Policy. 3.5 GRACE PERIOD: If the Net Cash Surrender Value on any monthly due date is insufficient to cover the monthly deduction then due, a Grace Period of thirty one (31) days shall be allowed for the payment of a Premium sufficient to cover the monthly deduction. If the Insured dies within the Grace Period, the amount of the overdue monthly deduction will be deducted from the proceeds. 3.6 TERMINATION OF POLICY: Subject to the minimum premium requirements, if sufficient Premium is not paid by the end of the Grace Period, and the Net Cash Surrender Value is still insufficient to cover the monthly deduction, all coverage under this Policy will terminate and the Policy will end without value. The Policy will not terminate in the first two Policy Years provided that the Owner pays a Premium at least equal to the Target Premium the additional Premium for the Supplementary Contracts, if any attached to the Policy, in each of the first two Policy Years, provided the Account Value is sufficient to cover all the monthly deductions. 3.7 REINSTATEMENT: If the Policy is terminated because the Grace Period expired without sufficient Premium being paid, this Policy may be reinstated during the Insured s lifetime within three years after the expiry of the Grace Period. The reinstatement is subject to production of evidence of insurability satisfactory to the Company together with a payment of a Premium amount sufficient to keep the Policy in force for at least 12 months. Said Premium amount shall not be less than the minimum premium acceptable by the Company. Any Indebtedness which existed at the end of the Grace Period will be reinstated if it is not paid. The effective date of reinstatement will be the Monthly Anniversary date following the date of approval of reinstatement. The Policy cannot be reinstated if it has been surrendered by the Owner for its Net Cash Surrender Value. 3.8 PREMIUM PAYMENT BONUS: A Premium Bonus may be granted in Policy Years eleven through fifteen provided that in each of the Policy Years eleven through fifteen the Owner pays a Premium at least equal to the Lower Target Premium plus the Premium for Supplementary Contracts attached to the Policy. The Bonus shall be a percentage of the lowest premium (exclusive of Premium for Supplementary Contracts, attached to the Policy), received during the Policy Years one through ten, up to a maximum of the Target Premium. If no premium is received in anyone of those years, the lowest premium is zero. Payment of Premiums for Supplemental Contracts, if any, are paid first and shall not be considered as Premium for the purpose of determining the Bonus. The Bonus, as a percentage, is specified in the Policy Specification Schedule. 4.0 ACCOUNT VALUE AND INVESTMENT OPTIONS The Owner shall have the option to allocate the Net Premium paid into the Account Value between the Guaranteed Return Account (GRA) and any Investment Subaccounts made available at that time, subject to the provisions provided hereunder.

6 4.1 ACCOUNT VALUE AT ANY TIME: The Account Value at any time is equal to the sum of the amounts in the Investment Subaccounts and the GRA under this Policy less monthly deductions ALLOCATION OF NET PREMIUM: The initial allocation percentages will be as specified in the application for this Policy, a copy of which is attached to this Policy. An allocation percentage may be zero, or in multiples of 10% subject to any minimum amount specified by the Company. The sum of these allocation percentages must be equal to 100%. These percentages may be changed by written application to the Company at its Administrative Office. If, for any reason, no allocation percentage is specified to the Company, the Net Premium will be allocated 100% to the GRA. Unless later changed by written application to the Company at its Administrative Office, initial allocation percentages shall also apply to the subsequent Net Premiums. 4.3 TRANSFERS: Upon written request to the Company s Administrative Office, the Owner may transfer amounts between one or more of the Subaccounts offered or to the GRA. Four transfers per Policy Year may be made without charge. Additional transfers may be made for a fee as determined by the Company. The amount of transfer shall be subject to the minimum and the maximum amounts acceptable to the Company at any time. Transfers into the Guaranteed Return Account shall be subject to the approval of the Company. The total amount of all transfers from the GRA in a Policy Year is limited to 25% of the unloaned value of the GRA. This limit is reduced by the amount of each transfer or transaction from the GRA during the Policy Year. Larger transfer amounts from the GRA may be permitted, but are subject to financial underwriting and approval by an officer of the Company. All allocation changes or transfers will be made based upon a written request to the Administrative Office, and will take effect on the first Unit Valuation Date after processing of the request. Units will be purchased and/or sold within 15 days of processing an allocation change or transfer request from the date of receipt by the Company at its Administrative Office. All allocation changes and transfers are subject to charges as determined by the Company. 4.1 The Company invests the assets of all Subaccounts in investment vehicles as mentioned under Section 4.3 below. The Subaccounts chosen with the initial allocations are shown on the Application for this Policy, a copy of which is attached to this Policy. 4.2 The Value of the Investment Subaccounts : The value of a Subaccount under this Policy at any time is equal to the number of units this Policy then has in that Subaccount, multiplied by the Subaccount s Unit Value at that time. The Subaccount s Unit Value carries no guarantee of principal or investment return. The value of the individual units for purchase or redemption will be determined by the Company. The number of units a Policy has in a Subaccount at any time is equal to the number of units purchased minus the number of units redeemed in that Subaccount to that time. The number of units purchased or redeemed in a Policy transaction is equal to the amount of the Policy transaction divided by the Unit Price appropriate to that transaction on the Unit Valuation Date. A Policy transaction occurs when units of a Subaccount are either purchased or redeemed. Amounts allocated, transferred or added to a Subaccount are used to purchase units of that Subaccount; units are redeemed when amounts are deducted, transferred, or fully or partially surrendered. Policy transactions may be made on any business day; however the Unit Value that applies to any transaction made will be the Unit Value determined by the Company on the Unit Valuation Date. 4.3 The Company may at its discretion execute any strategy offered to the Account Value by investing in investment vehicles including but not limited to bonds, time deposits, certificate of deposits and shares of a designated investment company or companies managed by a Company affiliate and/or third party. The Company has no obligation to select a third party in lieu of an affiliated manager to manage the Subaccounts; in fact, it is contemplated that most strategies will be implemented by the Company in co-ordination with affiliated managers without any consideration whatsoever of third party managers. However, the Owner will have no beneficial ownership in any underlying investment vehicle or right of action against any underlying manager or the Company. 4.4 The Investment Strategies and Investment Subaccounts offered are subject to the Company s ability to invest in international mutual funds or investment companies shares or any other non-local currency denominated investment vehicles. The Company may from time to time make other Subaccounts available and has the right to change, add or delete designated investment companies, to add or remove Subaccounts, and to combine any two or more Subaccounts 4.5 In the event an Investment Strategy or Investment Subaccount offered by the Company should no longer be available, the Company shall provide the Owner with written notice of the same and the Owner shall have the right either to re-allocate the value in the Subaccount(s) affected by this change to the GRA and/or any available, Investment Subaccount option or otherwise surrender the Policy and receive the Net Cash Surrender Value. 4.6 In the event the Owner fails to respond to the Company s notice of unavailability of particular Investment Strategies or Subaccounts the Company reserves the right at its sole discretion to reallocate any sums in such unavailable Investment Strategies or Subaccount(s) to the GRA and/or any available Sub-account under the Lower Risk Strategy. 4.7 The Value of the GRA: The value in the GRA at any time is equal to the amounts allocated and transferred to it, plus the interest credited to it, less monthly deductions, and amounts transferred and partially surrendered from it.

7 The GRA s guaranteed minimum investment yield is shown on the Policy Specification Schedule. Yield in excess of the guaranteed minimum may be applied in calculation of GRA Value at such increased rates as the Company may determine. 4.8 Transfers: Upon written request to the Company s Administrative Office, the Owner may transfer amounts between one or more of the Subaccounts offered or to the GRA. Four transfers per Policy Year may be made without charge. Additional transfers may be made for a fee as determined by the Company. The amount of transfer shall be subject to the minimum and the maximum amounts acceptable to the Company at any time. Transfers into the Guaranteed Return Account shall be subject to the approval of the Company. The total amount of all transfers from the GRA in a Policy Year is limited to 25% of the unloaned value of the GRA. This limit is reduced by the amount of each transfer or transaction from the GRA during the Policy Year. Larger transfer amounts from the GRA may be permitted, but are subject to financial underwriting and approval by an officer of the Company. All allocation changes or transfers will be made based upon a written request to the Administrative Office, and will take effect on the first Unit Valuation Date after processing of the request. Units will be purchased and/or sold within 15 days of processing an allocation change or transfer request from the date of receipt by the Company at its Administrative Office. All allocation changes and transfers are subject to charges as determined by the Company. 5.0 INSURANCE COVERAGE PROVISIONS 5.1 DEATH BENEFITS: Subject to the provisions of this Policy, in case of death of the Insured, the Company shall pay to the Beneficiary the benefit as determined under either Death Benefit Option A or Option B as defined below. The use of Option A or B to determine the amount payable will be based on the benefit selection made by the Owner in the application for insurance, or in effect on the date of death if a change has been made after the application date. Any Death Benefit payable shall be reduced by any applicable Indebtedness and/or partial surrenders. If no selection of the Death Benefit Option is made in the application or at any time prior to the date of death has been made, the payment of benefits to the Beneficiary will be applied per Option A. Under Death Benefit Option A, the Company agrees to pay to the Beneficiary the Basic Face Amount or the Account Value, whichever is greater. Under Death Benefit Option B, The Company agrees to pay to the Beneficiary the Basic Face Amount Plus the Account Value. For the purpose of calculating death benefits, the Account Value shall be determined as of the Unit Valuation Date immediately following the date that the notification of death is received by the Company at its Administrative Office. 5.2 CHANGING THE BASIC FACE AMOUNT OF THE DEATH BENEFIT OPTION. AT ANY TIME: After the first Policy Year, the Owner may change the Death Benefit Option; After the second Policy Year, the Owner may request an increase in the Basic Face Amount; After the fifth Policy Year, the Owner may reduce the Basic Face Amount. Any such change may require evidence of insurability and is subject to deduction of loads and the Company s consent. Any increase or decrease will become effective on the Monthly Anniversary date following the date of approval. Any increase in Basic Face Amount will change the Target Premium indicated in the Policy Specification Schedule.Any reduction in Basic Face Amount will not change the Target Premium indicated in the Policy Specification Schedule. All changes must be made while this Policy is in force and by written request to the Company at its Administrative Office. 5.3 MATURITY BENEFITS: The Policy will mature on the Maturity Date shown on the Policy Specification Schedule. The maturity benefit shall be the Account Value on the Maturity Date less any Indebtedness. 6.0 THE CASH SURRENDER VALUE OF THIS POLICY 6.1 NET CASH SURRENDER VALUE: The Owner may give up this Policy for its Net Cash Surrender Value at any time while the Insured is living. This may be done by sending a written request and this Policy document to the Company s Administrative Office. The Company will compute the Net Cash Surrender Value as of the next Unit Valuation Date after the request is received and processed along with this Policy document at the Company s administrative Office. All insurance coverage under this Policy ends on such date, and the Policy shall have no further value of any kind. The Company may defer payment of the Net Cash Surrender Value amount for a period not exceeding 6 months. 6.2 PARTIAL SURRENDER: The Owner may surrender a part of the Account Value. A partial surrender will result in a reduction in the Account Value equal to the partial surrender amount and its associated charges. It shall also reduce the Basic Face Amount under Death Benefit Option A. The Owner may ask for a partial surrender by written request to the Company s administrative Office no more than twice during a Policy Year. All requests will be subject to the Company s

8 approval based on the rules in effect when the request is received. The partial surrender amount deducted from the Account Value is equal to the amount requested plus the partial surrender charge, loads and a processing fee. The Company may defer payment of the Partial Surrender amount for a period not exceeding 6 months. The Owner may determine how much of each partial surrender is to come from the GRA value or from values in each of the Subaccounts. If no specific request is made, the partial surrender will be deducted from the Account Value proportionate to the values in the GRA and Subaccounts in relation to the full Account Value, and subject to any minimum amount required in each. Partial surrender will not be permitted if it will result in a reduction of Basic Face Amount to less than the minimum Basic Face Amount as determined by the Company. Such partial surrender and resulting reduction in the Basic Face Amount for Death Benefit Option A, in the Cash Surrender Value, and in the Account Value will take effect on the next Unit Valuation Date after receipt and processing of the request. 7.0 POLICY LOANS: 7.1 The Company will lend on sole security and proper assignment of this Policy an amount not exceeding the 80% of the Net Cash Surrender Value. The Company reserves the right to defer the granting of a loan for a period not exceeding six months. Interest on the loan will accrue from day to day at a rate of interest determined by the Company, payable on each Policy Anniversary. The Company shall have the right to re-determine the rate of interest applicable to new and existing loans. Interest not paid when due will be added to the principal of the loan upon which interest is calculated. The loan principal and accrued interest thereon will be deducted from any settlement under the Policy. No loans will be permitted during the first three Policy Years. In addition, no loan shall be made during the first 12 Policy Months immediately following an increase in the Basic Face Amount nor will more than one loan during a Policy Year be allowed. 7.2 The request for a policy loan must be made in writing to the Company s Administrative Office. The Owner may determine how much of the requested loan is to be allocated to the unloaned value GRA and the Subaccounts. All values for loan purposes will be determined as of the most recent Unit Valuation Date. If no specific request is made, the loan allocation will be based on the proportion that the unloaned value in the GRA and the values in the Subaccounts bear to the total unloaned portion of the Account Value. 7.3 The loaned portion of the Account Value will be maintained as a part of the GRA. 7.4 If a loaned amount is allocated to a Subaccount, units of that Subaccount, sufficient in value to cover the amount of the loan so allocated, will be redeemed and transferred to the GRA. 7.5 Repayment of all or part of a Policy loan may be made at any time while the Insured is alive and this Policy is in force. A loan repayment will reduce the loaned portion of the Account Value. Any payment received during the period in which a loan is outstanding, but the Policy is not within a Grace Period, will be considered a Loan repayment unless the Company at its Administrative Office is advised otherwise in writing. 7.6 Failure to repay a policy loan or to pay loan interest will not terminate this Policy unless at the beginning Monthly Anniversary date the Net Cash Surrender Value is less than the total monthly deduction then due. In that case, the Grace Period provision will apply. 7.7 A policy loan will have a permanent effect on the benefits under this Policy even if it is repaid. ABOUT METLIFE ALICO MetLife, Inc. is a leading global provider of insurance and financial services with more than 140 years of experience and operations throughout the United States, Latin America, Japan, Asia Pacific, Europe and Middle East. Through its subsidiaries and affiliates, MetLife, Inc. reaches 90 million customers in over 60 countries, is the largest life insurer in the United States 1 and Mexico 2, and has relationships with more than 90 of the top 100 FORTUNE 500 companies 3, and over seventy percent of all Fortune 500 companies. The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement and savings products and services to corporations and other institutions. For more information, visit 1 #1 U.S. Life Insurer (Grp+Ind - based on policies in force) LIMRA, June Estadisticas AMIS, June FORTUNE 500, May FORTUNE 500 is a registered trademark of FORTUNE magazine, a division of Time, Inc. ALICO IS A METLIFE, INC. COMPANY American Life Insurance Company American Life Insurance Company WILMINGTON, DELAWARE, U.S.A. ADMINISTRATIVE OFFICE INCORPORATED 1921 P.O. BOX 5984, SHARJAH, U.A.E. Haffa House Hotel, P.O. Box: 894 P.C. 114, Muttrah, Sultanate of Oman MA/BNC/SL-T&C/HSBC/Oman/ MetLife Alico