This rider guarantees the policyowner a return of premiums paid in the early years of the policy if certain conditions are met. The primary insured must be between 18 and 70 for this rider to be added.
If the policyowner surrenders the policy during the first five years, the payout will be the greater of:
- Net surrender value
- A percentage of the cumulative premiums, including 1035 premiums
The percentage of cumulative premiums returned is based on the policy year.
| Year | Percentage |
|---|---|
| 1 - 3 | 100% |
| 4 | 95% |
| 5 | 90% |
The rider can't be used with any of the following riders:
- Extended Death Benefit Guarantee rider
- Surrender Charge Waiver rider
- Surrender Value Enhancement benefit
Withdrawals, loans, increases and death benefit option changes are not permitted while this rider in in force.
Premium requirements
Each annual premium requirement must be met by the end of that respective policy year or the rider will terminate.
- There is no grace period for meeting the premium requirement
- For purposes of meeting the premium requirement, premium includes all premium received less any 1035 exchanges and less any premium sent back due to guidelines rules
- Once the premium requirement is met for the policy year, the benefit is available for the rest of the following policy year
- Amounts paid in excess of the required amount will carry over into the next policy year
- The required premium amounts will be stated in the Policy Specifications Pages
Please note that the election of this rider will result in a modified commission and chargeback schedule.
