Level Premium Whole Life Policy
[January 1, 2013]
[John M Doe 1 Golden Street
Somewhere, CA 90210]
MetLife Investors USA Insurance Company Designated Office:
[1300 Hall Boulevard Bloomfield, CT 06002 1-800-MET-5000
Website address: www.eservice.metlife.com.]
Dear [John Doe],
You’ve taken an important step in providing financial stability for yourself and your loved ones. We’re happy you chose MetLife to assist in meeting your insurance needs.
Please review your policy carefully
This is a level premium non-participating whole life insurance policy.
Premiums are payable for a specified period. If the Insured dies while the Policy is in force, we will pay the Policy Proceeds to the Beneficiary. We must receive due proof of the Insured’s death. Any payment will be subject to all of the provisions of the Policy.
Right to examine policy
Please read the Policy. You may return the Policy to our Designated Office within 31 days from the date you receive it. If you return it within this period, we will refund any premium paid and the Policy will be void from the start.
The Policy is a legal contract between the Owner and MetLife Investors USA Insurance Company.
THIS POLICY HAS A LIMITED GRADED DEATH BENEFIT WHERE REDUCED BENEFITS MAY BE PAID IN THE FIRST TWO POLICY YEARS. PLEASE READ YOUR CONTRACT CAREFULLY.
We’re here to help
Please don’t hesitate to contact our Customer Service Center at [1-800-MET- 5000], [Monday through Friday, 9:00 a.m. to 6:00 p.m. ET] if you have any questions regarding this Policy.
Signed for MetLife Investors USA Insurance Company at its Main Administrative Office [Irvine, CA 92614].
President Secretary
PEANUTS © 2013 Peanuts Worldwide
Your MetLife Policy
Insured [John M Doe]
Policy Number [Specimen]
Face Amount [$2,500]
Policy Start Date [January 1, 2013]
Policy Issue Date [January 1, 2013]
Maturity Date [January 1, 2083]
Issue Age of Insured [50]
Sex [Male]
Alphabetic Guide to Your Contract
Section
1 Accidental Death 1 Application 8 Assignments 1 Attained Age
2 Basis of Computation 8 Beneficiary
2 Cash Surrender Value 2 Cash Value
9 Claims of Creditors 1, 6 Death Benefit
1 Definitions 1 Designated Office 1 Excess Loan 1 Face Amount 3 Fixed Loan Interest 9 General Provisions 4 Grace Period
9 Illustration of Benefits 9 Incontestability 1 Insured
8 Interpretation of Owner and Beneficiary Designations
1 In Writing 1 Issue Age 5 Lapse of Policy
Section
3 Loans
3 Loan and Loan Interest Repayments 7 Maturity Benefit
1 Maturity Date
9 Misstatement of Age or Sex 5 Nonpayment of Premiums
8 Owner
8 Owner and Beneficiary 4 Payment of Premiums 1, 6 Policy Proceeds
4 Premiums and Grace Period
8 Procedure for Changing the Beneficiary or Owner
6 Processing Your Claim 1 Policy Issue Date 1 Policy Loan Balance 1 Policy Start Date 1 Premiums
5 Reduced Paid-Up Insurance 5 Reinstatement
9 Statements in Application 9 Suicide Exclusion
2 Surrender
1 Temporary Accidental Death Benefit 9 The Contract
1 We, Us and Our 1 You and Your
Endorsements and Amendments, if any, and a copy of the Application follow the final section of the Policy.
Policy Specifications
Schedule of Benefits and Premiums
Policy Plan: Graded Death Benefit Until Attained Age [52]
1st Policy Year 2nd Policy Year
3rd Policy Year until Maturity
Date Death Benefit [$184.80] [$369.60] Face Amount Temporary
Accidental Death Benefit
Face Amount Face Amount $0
The Death Benefit or the Temporary Accidental Death Benefit will be used to determine the Policy Proceeds. See the Policy Proceeds provision. The first two years of Death Benefits shown above assumes an annual premium is paid.
Premiums
Monthly Quarterly Semi-Annual Annual Premium Period [$14.00] [$42.00] [$84.00] [$168.00] To Attained Age 100
Table of Guaranteed Values
End of Policy
Year Cash Value
Reduced Paid- Up Insurance
End of Policy
Year Cash Value
Reduced Paid- Up Insurance [1 $ - $ - 11 $480.00 $987.00
2 27.50 74.00 12 532.50 1,065.00
3 72.50 189.00 13 587.50 1,144.00
4 122.50 310.00 14 640.00 1,213.00
5 170.00 417.00 15 695.00 1,284.00
6 220.00 523.00 16 750.00 1,351.00
7 270.00 623.00 17 805.00 1,415.00
8 320.00 717.00 18 860.00 1,475.00
9 372.50 811.00 19 915.00 1,532.00
10 425.00 899.00 20 972.50 1,590.00
Age 75 25 1,252.50 1,835.00 Age 100 50 2,270.00 2,500.00 Age 120 70 2,500.00 -]
On request, we will provide values for dates not shown.
We may offer you promotional programs.
Your MetLife Policy
Insured [John M Doe]
Policy Number [Specimen]
Face Amount [$2,500]
Policy Start Date [January 1, 2013]
Policy Issue Date [January 1, 2013]
Maturity Date [January 1, 2083]
Issue Age of Insured [50]
Sex [Male]
Maximum Fee for Illustration of Benefits
[$25]
Nonforfeiture Interest Rate [4%]
Mortality Table
[2001 CSO Mortality Table for a Male, Age Last Birthday]
Definitions
1. Definitions
Accidental Death
Death which: resulted directly, and independently of all other causes, from accidental bodily injury; and occurred within 90 days after the accidental bodily injury. The Insured’s death will not be an Accidental Death if it resulted directly or indirectly from:
1. Suicide;
2. Mental illness or treatment for mental illness;
3. Infection, except when caused by an external visible wound accidentally sustained;
4. The use of any drug, unless used on the advice of a licensed medical practitioner;
5. The commission of or attempt to commit an assault or felony by the Insured;
6. Flight in or descent from or with any kind of aircraft or spacecraft, unless the Insured was only a passenger with no duties in connection with the flight or descent and the flight or descent was not for training or experimental purposes; or
7. War or warlike action in a time of peace.
Application
The application, including any amendments, for the Policy. A copy of the Application is attached to and is part of the Policy.
Attained Age
The Issue Age plus the number of completed policy years. This includes any period during which the Policy was lapsed.
Death Benefit
In the first two policy years, the Death Benefit will equal 110% of the total premiums paid to the date of the Insured’s Death. Thereafter, the Death Benefit will equal the Face Amount. The Death Benefit is used in determining the Policy Proceeds.
Designated Office
The office set forth as our Designated Office on the front cover or any other office we designate.
Excess Loan
An Excess Loan occurs when the Policy Loan Balance exceeds the Cash Value of the Policy.
Face Amount
The amount of coverage indicated on the Application.
The Face Amount is used in determining the Death Benefit and the Temporary Accidental Death Benefit.
In Writing
In a written form satisfactory to us and received at our Designated Office.
Insured
The person whose life is insured under the Policy.
Issue Age
The age of the Insured as of his or her last birthday as of the Policy Start Date.
Maturity Date
The policy anniversary on which the Insured is Attained Age 120.
Policy Issue Date
The date from which the contestable and suicide periods for the coverage are measured.
Policy Loan Balance
The Policy Loan Balance at any time equals the outstanding Loan plus Loan Interest accrued to date.
Policy Proceeds
The amount paid to the Beneficiary upon receipt of due proof of the Insured’s death.
Policy Start Date
The date the Policy takes effect. Policy years, months and anniversaries are all measured from the Policy Start Date.
Premiums
Premiums are payments made to us. If premiums are paid annually, the due date is your policy anniversary each year. If premiums are paid on other than an annual mode, the due date is the policy anniversary and each semi-annual, quarterly or monthly anniversary as applicable.
Temporary Accidental Death Benefit
In the first two policy years, the Temporary Accidental Death Benefit will equal the Face Amount. Thereafter, it will be zero. The Temporary Accidental Death Benefit is used in determining the Policy Proceeds.
We, Us and Our
MetLife Investors USA Insurance Company.
You and Your
The Owner of the Policy.
About the Policy Values
2. Cash Values
Cash Value
The Table of Guaranteed Values shows the
Guaranteed Cash Value of the Policy at various dates.
The Cash Values shown assume: that all premiums due have been paid; and that there is no Policy Loan Balance.
The Cash Value of any Reduced Paid-Up Insurance (see the Reduced Paid-Up Insurance provision) is equal to the net single premium which would be required to provide the insurance at the age of the Insured on the date of the valuation.
For 31 days after each policy anniversary, the Cash Value will not be less than it was on the anniversary.
Cash Surrender Value
The Cash Surrender Value of the Policy is equal to:
1. The Cash Value of the Policy; less 2. Any Policy Loan Balance.
Surrender
You may surrender the Policy for its Cash Surrender Value during the lifetime of the Insured. We will
determine the Cash Surrender Value as of the date we receive your request In Writing. The Cash Surrender Value will be paid to you in one sum. Any part of a premium paid for coverage beyond the date you surrender the Policy will be refunded to you. (See the Policy Proceeds provision.) The Policy will terminate on the date of surrender.
If you surrender the Policy within 31 days after the policy anniversary date, the Cash Surrender Value of the Policy will not be less than the Cash Surrender Value on that anniversary date, adjusted for any Loans or any Cash Value paid to you during the 31-day period.
We may defer payment of the Cash Surrender Value for up to six months.
Basis of Computation
Cash values, reserves and net single premiums are based on the mortality table and the Nonforfeiture Interest Rate as shown on the Policy Specifications page.
All values are at least equal to those required by the law of the state that governs the Policy. We have filed a detailed statement, if required, showing the method of calculating cash values and reserves with the insurance supervisory official of that state.
3. Loans
Loans
You may borrow the Loan Value (defined below) of the Policy by making a request In Writing.
The Loan Value on the date the Loan is made is:
1. The Cash Surrender Value at the end of the current policy year; less
2. Loan interest to the next policy anniversary; less 3. Any unpaid premiums for that policy year.
The Policy will be the sole security for such Loan. After receipt of your Loan request, we have the right to defer making a loan for up to six months, except for a loan to pay premiums to us.
Fixed Loan Interest
Interest on loans will be charged at the rate of 8% per year. The Loan Interest is due each year on the policy anniversary.
Loan and Loan Interest Repayments
Any payment we receive will be applied as a premium payment unless it is clearly marked as a Loan or Loan Interest repayment. Any loan repayment must be at least [$50] unless you are paying the entire Policy Loan Balance. While the Policy is in force, you may repay the Policy Loan Balance in whole or in part at any time before the death of the Insured.
The Policy Loan Balance will be deducted from the Policy Proceeds and the Cash Surrender Value of the Policy.
If there is an Excess Loan, we will send a notice to your last known address and that of any assignee of record.
We will allow you a Grace Period for payment of the excess due. If the excess due remains unpaid at the end of the Grace Period, the Policy will lapse without value. The Grace Period will expire 31 days from the date the notice is sent.
If Loan Interest is not paid when it is due, we will add it to your existing Policy Loan.
About the Premium Payments
4. Premiums and Grace Period
Payment of Premiums
The first premium is due as of the Policy Start Date.
While the Insured is living, premiums after the first premium must be paid at our Designated Office or to a representative of the Company. A premium receipt signed by the Secretary of the Company will be furnished upon request. The Policy is not in force until the first premium is paid, even if you are in possession of the Policy. It will be considered that you have the Policy for inspection only.
Premiums for the Policy are shown on the Policy Specifications page. No payment is due or payable for any period after the death of the Insured.
Payment can be made at any premium frequency we make available. A change in premium frequency will be processed on the paid-to-date or following the date we approve your request to change the frequency.
Grace Period
There is a Grace Period of 31 days in which to pay a premium, without interest, after its due date. The insurance remains in force during the Grace Period.
5. Nonpayment of Premiums
Lapse of Policy
Any premium that is not paid by its due date is in default. If it remains unpaid at the end of its Grace Period, the Policy will lapse as of the due date of the premium in default.
If the Policy lapses because a premium is not paid, any Cash Surrender Value of the Policy will be used to continue the Policy in force as Reduced Paid-Up Insurance as stated below. Any Policy Loan will terminate when the Cash Surrender Value is used for this purpose.
Reduced Paid-Up Insurance
Reduced Paid-Up Insurance is permanent life insurance with no further premiums due. It has increasing cash value and loan value. The amount of Reduced Paid-Up Insurance is payable at the death of the Insured.
The amount of Reduced Paid-Up Insurance will be provided by using the Cash Surrender Value of the Policy as a net single premium at the age of the Insured on the due date of the premium in default to purchase an amount of Reduced Paid-Up Insurance.
The Table of Guaranteed Values shows the amount of Reduced Paid-Up Insurance which the guaranteed Cash Value could provide.
Reinstatement
If the Policy has not been surrendered, you may reinstate your lapsed Policy within three years after the date of lapse. To reinstate, you must submit a request In Writing and the following:
1. Proof satisfactory to us that the Insured is insurable by our standards.
2. Payment, while the Insured is living, of each unpaid premium, plus interest at the rate of 6% per year compounded yearly.
3. Payment or reinstatement of any Policy Loan Balance on the due date of the premium in default, plus interest from that date to the date of
reinstatement of the Policy at 8%.
The Insured must be alive on the date we approve the request for reinstatement. If the Insured is not alive, such approval is void.
Any Loan Value that would be available after reinstatement may be used toward the payment required to make reinstatement.
Policy Loans may have been made while the Policy was in force as Reduced Paid-Up Insurance. If the
About the Policy Benefits
6. Death Benefit
Processing Your Claim
We will pay the Policy Proceeds to the Beneficiary in one sum upon receipt of due proof of the Insured’s death.
Policy Proceeds
If the Insured dies within the first two years, and the Policy is not in a Reduced Paid-Up status, the Policy Proceeds will be equal to:
1. In the case of Accidental Death (see Accidental Death definition): the Temporary Accidental Death Benefit plus any part of a premium paid for coverage beyond the date of death; less any premium due for coverage at the time of the Insured’s death and less any Policy Loan Balance.
OR
2. If the Insured’s death is not an Accidental Death:
the Death Benefit; less any Policy Loan Balance.
If the Insured dies after the first two years, and the Policy is not in a Reduced Paid-Up status, the Policy Proceeds will be equal to: the Death Benefit plus any part of a premium paid for coverage beyond the date of death; less any premium due for coverage at the time of the Insured’s death and less any Policy Loan Balance.
If Insured dies while the Policy is in a Reduced Paid-Up Status, the Policy Proceeds will be equal to:
The amount of Reduced Paid-Up Insurance; less any Policy Loan Balance.
In no event will the amount payable upon the death of the Insured be less than the minimum amount required to permit the Policy to qualify as life insurance under the Federal income tax rules in effect on the Policy Issue Date.
7. Maturity Benefit
If the Insured is alive on the Maturity Date, we will pay the Cash Surrender Value to the Owner. This payment will terminate the Policy. We may require that the Policy be returned to us before we make any payment.
Please note: The Policy may not qualify as a life insurance contract under the Internal Revenue Code on the date the Insured has reached Attained Age 120 and may be subject to tax consequences.
Please consult a tax advisor with regard to payout of the Cash Surrender Value on the Maturity Date.
About the Owner and Beneficiary
8. Owner and Beneficiary
Owner
On the Policy Start Date, the Insured is the Owner of this Policy. After the Policy Start Date but before the death of the Insured, you can change the Owner to another person, a partnership, corporation, or any other legal entity. The new Owner will succeed to all of the rights of the Owner, including the right to make a further change of Owner. A change of Owner will void any prior Beneficiary designation; however, an
irrevocable Beneficiary cannot be changed without his or her consent.
If there is more than one Owner, all Owners must exercise the rights of ownership by joint action. At the death of the Owner, his or her estate will be the Owner, unless a successor Owner has been named. The rights of the Owner will end at the death of the Insured, except as provided in the Beneficiary provision.
Beneficiary
Your Beneficiary can be a person, partnership, corporation, or any other legal entity. The initial
Beneficiary is named in the Application. After the Policy Start Date but before the death of the Insured, you can change the Beneficiary; however, an irrevocable Beneficiary cannot be changed without his or her consent. The Beneficiary has no interest in the Policy until the death of the Insured. A person must survive the Insured to qualify as Beneficiary. If no Beneficiary survives, the proceeds will be paid to the Owner.
Procedure for Changing the Beneficiary or Owner You must make a request In Writing during the Insured’s lifetime to change the Beneficiary or Owner.
Once the request is recorded, the change will take effect as of the date you signed the request, whether or not the Insured is living when we receive your request.
The change will be subject to any legal restrictions. It will also be subject to any payment we made or action we took before we recorded the change.
Interpretation of Owner and Beneficiary Designations
A numbered sequence can be used to name
successive Owners or Beneficiaries. Co-beneficiaries will receive equal shares unless otherwise stated.
In naming (designating) Owners or Beneficiaries, unless otherwise stated, if you use the terms below, they will be interpreted as stated in this provision:
1. A general designation of unnamed children as a group of Beneficiaries includes all future children born to or adopted by the Insured after the date of the designation.
2. “Provision for issue” means that if a Beneficiary does not survive the Insured, the share of the Policy Proceeds for that Beneficiary will go to his or her living issue by right of representation; and 3. A designation that specifies a family relationship
such as “wife”, “husband” or “child” refers to the relationship to the Insured.
At the time of payment of benefits, we can rely on an affidavit of any Owner or other responsible person to determine family relations or members of a class.
Assignments
If you make an absolute assignment of the Policy, the assignee will be the new Owner and Beneficiary. A collateral assignment of the Policy by you is not a change of Owner or Beneficiary; but their rights will be subject to the terms of the collateral assignment.
Assignments will be subject to all payments made and actions taken by us before a signed copy of the assignment form is recorded by us at our Designated Office. We will not be responsible for determining whether or not an assignment is valid.
General Provisions
9. General Provisions
The Contract
We have issued the Policy in consideration of the Application and payment of premiums. The Policy includes the attached Application, and any endorsements. Together they comprise the entire contract and are made a part of the Policy when the insurance applied for is accepted. The Policy may be changed by mutual agreement. Any change must be In Writing and approved by our President, Vice President or Secretary. Our representatives have no authority to alter or change any terms, conditions, or agreements of the Policy, or to waive any of its provisions.
If we make any payment or any policy changes in good faith, relying on our records or evidence supplied to us, our duty will be fully discharged. We reserve the right to correct any errors in the Policy.
Statements in Application
All statements made by the Insured will be deemed representations and not warranties. Material
misstatements will not be used to void the Policy or to deny a claim unless made in the Application for the Policy.
Claims of Creditors
To the extent permitted by law, neither the Policy nor any payment under it will be subject to the claim of creditors or to any legal process.
Misstatement of Age or Sex
If we determine that there was a misstatement of age or sex reflected in the Policy, the values and benefits will be the amounts that the premiums paid would have purchased for the correct age and sex.
Incontestability
We cannot contest the coverage after the Policy has been in force during the lifetime of the Insured for two years from its Policy Issue Date.
If the Policy was issued as the result of the exercise of an option given in another policy and proof of
insurability was not required, the contestable period applicable to the coverage resulting from the option exercise will end at the same time as it would have under the original policy.
Suicide Exclusion
If the Insured dies by suicide, while sane or insane, within two years from the Policy Issue Date, the amount payable will be limited to: the amount of premiums paid (without interest) or the reserve if greater and required by state law; less any Policy Loan Balance on the date of death.
If the Policy was issued as the result of the exercise of an option given in another policy and proof of
insurability was not required, the suicide period applicable to the coverage resulting from the option exercise will end at the same time as it would have under the original policy.
Illustration of Benefits
You may ask us In Writing for an illustration of benefits.
We may charge a small fee for any requested illustration after the first in each policy year. This fee will not exceed the Maximum Fee for Illustration of Benefits shown on the Policy Specifications page.
Level Premium Whole Life Policy
This is a level premium non-participating whole life insurance policy. Premiums are payable for a specified period. If the Insured dies while the Policy is in force, we will pay the Policy Proceeds to the Beneficiary. We must receive due proof of the Insured’s death. Any payment will be subject to all of the provisions of the Policy.
THIS POLICY HAS A LIMITED GRADED DEATH BENEFIT WHERE REDUCED BENEFITS MAY BE PAID IN THE FIRST TWO POLICY YEARS. PLEASE READ YOUR CONTRACT CAREFULLY.
