A lump sum death benefit will be paid if the active person insured dies. The policy will terminate following the payment of the death benefit.
We will also pay you any accumulated cash benefits you may have chosen to leave with us. Any policy debt and interest will be deducted from the amount paid.
However, if there is a secondary person insured appointed, the death benefit will not be paid out. Upon death of the original person insured, the secondary person insured will become the active person insured and the policy will continue.
The death benefit will be the sum of:
a. The higher of: i) 105% of the single premium or total annual premiums paid (excluding rider premiums), less all guaranteed cash benefits already paid out; or
ii) the guaranteed surrender value, and
b. Terminal bonus.