Readthe following sample life insurance policies:

• Universal Life
• Whole Life

Completethe worksheets for each sample policy.

Universal Life Policy Worksheet FIN/428 Version 1 University of Phoenix Material Universal Life Policy Worksheet Review the Sample Universal Life Insurance Policy and answer the following questions. Answer each question in 200 to 250 words: Question Answer What is the postponement of payments provision? What is the result of a misstatement of age in the application? What is the suicide provision? Explain the cash value loan policy. Explain the premium payments policy. Copyright 2014 by University of Phoenix. All rights reserved. 1 Whole Life Policy Worksheet FIN/428 Version 1 University of Phoenix Material Sample Whole Life Insurance Policy Worksheet Review the Sample Whole Life Insurance Policy and answer the following questions. Answer each question in 200 to 250 words: Question Answer What is the primary difference between a Universal Life and a Whole life Insurance policy? What is the life insurance qualification test? Explain the contestable period. Explain the payment of policy proceeds provision. Explain the primary difference between a whole life policy and a term policy. Copyright 2014 by University of Phoenix. All rights reserved. 1 Pruco Life Insurance Company 213Washington Street,Newark, 07102-2992 NJ A Stock CompanySubsidiary of ThePrudential Insurance Company America of Insured JOHNDOE xx xxx xxx Policy Number MAY1,2005 ContractDate Agency R-NK1 Flexible Premium Universal life Insurance Policy. Insurance payable only upon death. Cash values reflect payments, interest credited to the contract fund, and charges. Non-participating. -J -J PLEASE READ YOUR POLICY CAREFULLY; a legal contract it is betweenyouandPruco Insurance Life Company. ULNT-2005 premium GUIDE TO CONTENTS Contract Data Insured's Information; Rating Class; Basic Contract Information; Type of Death Benefit; Life Insurance on the Insured; Minimum Initial Premium; Contract Limitations; Other Benefits (if applicable); Adjustments to Premium Payments; Adjustments to the Contract Fund; Monthly Deductions from the Contract Fund for Other Benefits (if applicable); Schedule of Maximum Surrender Charges Page 3 Table(s) Segment Table; Table Of Maximum Monthly Insurance Rates per $1000 of Net Amount at Risk; Table Of Attained Age Factors 4 Definitions 5 The Contract Entire Contract; Contract Modifications; Incontestability 5 Ownership 5 Death Benefit Provisions Death Benefit; Additional Death Benefits; Method of Payment; Suicide Exclusion; Interest on Death Benefit 6 Change In Basic Insurance Amount Surrender Charge on Decreases 7 Cost of Insurance 8 Changing The Type Of Death Benefit 8 Beneficiary 9 Premium Payment Payment of Premiums; Invested Premium Amount; Crediting the Initial Premium Payment 10 Contract Fund Cash Value; Net Cash Value; Net Amount at Risk 10 Default Excess Contract Debt Default; Cash Value Default; Notice of Default 11 Reinstatement 12 Surrender 12 (ULNT-2005) Page 2 Page Withdrawals Effect on Contract Fund; Effect on Basic Insurance Amount 13 Loans Loan Value; Contract Debt; Loan Requirements; Interest Charge; Preferred Loans; Maximum Preferred Loan Amount; Effect on Contract Fund 14 General Provisions Annual Report; Payment of Death Claim; Currency; Misstatement of Age or Sex; Assignment; Change in Plan; Factors Subject To Change; Non-Participating; Applicable Tax Law; Age 121 15 Basis of Computation Mortality Basis and Interest Rate; Minimum Legal Values 16 Settlement Options Options Described; Interest Rate 17 Settlement Options Tables 18 A copy of the application and any riders or endorsements can be found at the end of the contract. (ULNT-2005) Page 2A (This page intentionally left blank) (ULNT-2005) Page 2B PROCESSING DATE: XXX XX, XXXX CONTRACT DATA Insured's Information [JOHN DOE] [Male], Issue Age [35] Rating Class (See Segment Table on Page 4) Basic Contract Information Policy Number Contract Date Premium Period Beneficiary [xx xxx xxx] [May 1, 2005] During the life of the Insured up to attained age 121 [Mary Doe, wife] Loan Interest Rate Preferred Loan Interest Rate 4.00% 3.25% Type of Death Benefit (see Death Benefit Provisions) [Type A] Life Insurance on the Insured Basic Insurance Amount [$50,000.00] Minimum Initial Premium The minimum initial premium due on the Contract Date is [$72.05]. CONTRACT DATA CONTINUED ON NEXT PAGE Page 3 (2005) PROCESSING DATE: XXX XX, XXXX POLICY NO. XX XXX XXX CONTRACT DATA CONTINUED Contract Limitations The minimum premium we will accept is $25.00. The minimum Basic Insurance Amount is [$50,000.00.] The minimum increase in the Basic Insurance Amount is $25,000.00. The minimum decrease in Basic Insurance Amount is $5,000.00. The minimum amount you may withdraw is $250.00. The minimum amount you may borrow is $250.00. Adjustments to Premium Payments From each premium paid we will: subtract a premium-based administrative charge of up to 7.5% of the premium paid. subtract a charge for sales expenses at a rate of up to 12% of the premium paid. The remainder of the premium is the invested premium amount. Adjustments to the Contract Fund On the Contract Date the contract fund is equal to the invested premium amount credited on that date, minus any of the charges described below which may be due on that date. On each day after the contract date, we will adjust the contract fund by: adding any invested premium amounts. adding guaranteed interest at an effective annual rate of 3% (0.00809863% a day). adding any excess interest at an effective annual rate that Pruco Life declares. (We will not credit excess interest to the amount of any loan.) adding any additional excess interest. Additional excess interest at an effective annual rate of not more than 0.35% may be credited to policies in force at least 20 years. The additional excess interest is a result of a reduction in the interest margin for profit and expenses. The guaranteed interest rate will not be increased. CONTRACT DATA CONTINUED ON NEXT PAGE Page 3A (2005) PROCESSING DATE: XXX XX, XXXX POLICY NO. XX XXX XXX CONTRACT DATA CONTINUED subtracting any withdrawals. subtracting an administrative charge of up to $25.00 for any withdrawals. subtracting an administrative charge of up to $25.00 for any change in basic insurance amount. subtracting any surrender charge that may result from a withdrawal, surrender, or reduction in the basic insurance amount. And on each monthly date, we will adjust the contract fund by: subtracting a monthly charge for administrative expenses for the basic insurance amount effective on the contract date of up to: $0.12 per $1,000 of the basic insurance amount plus $20.00. subtracting a monthly charge for the cost of insurance (see Cost of Insurance). Schedule of Maximum Surrender Charges For a full surrender of the segment effective on , the maximum charge we will deduct from the contract fund is shown below. For a Surrender Occurring During Target Year 1 2 3 4 5 The Maximum Surrender Charge is [$521.40] [$479.69] [$437.98] [$396.26] [$354.55] 6 [$312.84] 7 [$291.98] 8 [$271.13] 9 [$250.27] 10 [$229.42] CONTRACT DATA CONTINUED ON NEXT PAGE Page 3B (2005) PROCESSING DATE: XXX XX, XXXX POLICY NO. XX XXX XXX CONTRACT DATA CONTINUED For a Surrender Occurring During Target Year 11 12 13 14 15 The Maximum Surrender Charge is [$208.56] [$187.70] [$166.85] [$145.99] [$125.14] 16 17 18 19 20 [$104.28] [$83.42] [$62.57] [$41.71] [$20.86] 21 and later [$0.00] We may also deduct a surrender charge when you decrease the basic insurance amount, change the type of death benefit, or make a withdrawal. (See Change in Basic Insurance Amount, Changing the Type of Death Benefit, and Withdrawals.) END OF CONTRACT DATA Page 3C (2005) PROCESSING DATE: XXX XX, XXXX POLICY NO. XX XXX XXX TABLE(S) Segment Table This table is used to compute the charge for the cost of insurance and the surrender charge on decreases in the basic insurance amount. See the Cost of Insurance, Changing the Type of Death Benefit, Withdrawals, and Change in Basic Insurance Amount provisions for details. The information shown below for each segment starts on the effective date of that segment. Effective Date Contract Date Segment, Issue Age, & Rating Class (RC) $50,000.00 Basic Insurance Amount Issue Age 35 RC = Nonsmoker Surrender Charge Threshold $50,000.00 TABLE(S) CONTINUED ON NEXT PAGE Page 4 (2005) PROCESSING DATE: XXX XX, XXXX POLICY NO. XX XXX XXX TABLE(S) CONTINUED Table of Maximum Monthly Insurance Rates per $1,000 of Net Amount at Risk Rating Class: NONSMOKER Insured's Attained Age* 35 36 37 38 39 Maximum Monthly Rate [0.09333] [0.09750] [0.10333] [0.11083] [0.11750] Insured's Attained Age* 68 69 70 71 72 Maximum Monthly Rate [1.75917] [1.91917] [2.10583] [2.33250] [2.59750] 40 41 42 43 44 [0.12667] [0.13750] [0.15083] [0.16667] [0.18417] 73 74 75 76 77 [2.87667] [3.17667] [3.50333] [3.87167] [4.30000] 45 46 47 48 49 [0.20333] [0.22250] [0.23833] [0.25083] [0.26667] 78 79 80 81 82 [4.79750] [5.35500] [5.97667] [6.65250] [7.36833] 50 51 52 53 54 [0.28750] [0.31417] [0.34667] [0.38417] [0.43167] 83 84 85 86 87 [8.15000] [9.01917] [9.98583] [11.04917] [12.19833] 55 56 57 58 59 [0.48500] [0.54000] [0.59333] [0.64667] [0.70917] 88 89 90 91 92 [13.42000] [14.70167] [15.97833] [17.23500] [18.55167] 60 61 62 63 64 [0.78500] [0.87750] [0.98500] [1.10250] [1.22500] 93 94 95 96 97 [19.94000] [21.40250] [22.85083] [24.26500] [25.77167] 65 [1.35250] 98 [27.37833] 66 67 Page 4A (2005) [1.48167] 99 [1.61667] 100 TABLE(S) CONTINUED ON NEXT PAGE [29.09250] [30.73000] PROCESSING DATE: XXX XX, XXXX POLICY NO. XX XXX XXX TABLE(S) CONTINUED Insured's Attained Age* 101 102 103 104 105 Maximum Monthly Rate [32.18250] [33.72750] [35.37000] [37.10583] [38.93417] Insured's Attained Age* 111 112 113 114 115 Maximum Monthly Rate [52.48583] [55.23583] [58.14583] [61.22083] [64.46917] 106 107 108 109 110 [40.87500] [42.93417] [45.11917] [47.43500] [49.88750] 116 117 118 119 120 [67.89667] [71.51083] [75.31667] [79.30583] [83.33333] * For the segment amount(s) effective on the contract date (see Segment Table), the Insured's attained age is the issue age found on page 3 plus the length of time since the contract date. For any segment amount(s) effective after the contract date, the Insured's attained age is the issue age of that segment plus the length of time since its effective date. We may charge less than the maximum monthly rates. From time to time, we will consider the need to change the rates we charge. We describe the factors we use to determine such changes under General Provisions. See the Basis of Computation for a description of the basis we use to compute these rates. TABLE(S) CONTINUED ON NEXT PAGE Page 4B (2005) PROCESSING DATE: XXX XX, XXXX POLICY NO. XX XXX XXX TABLE(S) CONTINUED Table of Attained Age Factors These factors are used to determine your death benefit as described under Death Benefit Provisions. These factors apply during each contract year. Contract Year 1 2 3 4 5 Factors [4.81] [4.65] [4.49] [4.33] [4.18] Contract Year 31 32 33 34 35 Factors [1.84] [1.79] [1.75] [1.70] [1.66] 6 7 8 9 10 [4.04] [3.90] [3.77] [3.64] [3.52] 36 37 38 39 40 [1.62] [1.58] [1.55] [1.51] [1.48] 11 12 13 14 15 [3.40] [3.29] [3.19] [3.08] [2.98] 41 42 43 44 45 [1.45] [1.42] [1.39] [1.36] [1.34] 16 17 18 19 20 [2.88] [2.79] [2.70] [2.62] [2.53] 46 47 48 49 50 [1.32] [1.29] [1.27] [1.25] [1.24] 21 22 23 24 25 [2.46] [2.38] [2.31] [2.24] [2.18] 51 52 53 54 55 [1.22] [1.20] [1.19] [1.18] [1.17] 26 27 28 29 30 Page 4C (2005) [2.11] 56 [2.05] 57 [1.99] 58 [1.94] 59 [1.89] 60 TABLE(S) CONTINUED ON NEXT PAGE [1.16] [1.15] [1.14] [1.13] [1.12] PROCESSING DATE: XXX XX, XXXX POLICY NO. XX XXX XXX TABLE(S) CONTINUED Contract Year 61 62 63 64 65 Factors [1.11] [1.11] [1.10] [1.10] [1.09] Contract Year 74 75 76 77 78 Factors [1.06] [1.05] [1.05] [1.05] [1.04] 66 67 68 69 70 [1.09] [1.08] [1.08] [1.07] [1.07] 79 80 81 82 83 [1.04] [1.04] [1.04] [1.03] [1.03] 71 72 73 [1.07] [1.06] [1.06] 84 85 86 [1.03] [1.03] [1.02] END OF TABLE(S) Page 4D (2005) DEFINITIONS We, our, us and Pruco Life. - Pruco Life Insurance Company. You and Your. - The owner(s) of the contract. Insured. - The person named as the Insured on the first page. He or she need not be the owner. Issue Date. - The contract date shown on the first page. Anniversary or contract anniversary. - The same day and month as the contract date in each later year. Contract Year. - A year that starts on the contract date or on an anniversary. Monthly Date. - The contract date and the same day as the contract date in each later month. Contract Month. - A month that starts on a monthly date. Target Year. - A year beginning on the effective date of a basic insurance amount segment (see Segment Table) and on the same day and month in a later year. THE CONTRACT Entire Contract This policy and any attached copy of an application, including an application requesting a change, form the entire contract. We assume that all statements in an application are made to the best of the knowledge and belief of the person(s) who make them; in the absence of fraud, they are deemed to be representations and not warranties. We rely on those statements when we issue the contract and when we change it. We will not use any statement, unless made in an application, to try to void the contract, to contest a change, or to deny a claim. Contract Modifications Only a Pruco Life officer with the rank or title of vice president may agree to modify this contract, and then only in writing. Incontestability Except as we state in the next sentence, we will not contest this contract after it has been in force during the Insured's lifetime for two years from the issue date. The exceptions are: (1) non-payment of enough premium to pay the required charges; and (2) any change in the contract that requires our approval and that would increase our liability. For any such change, we will not contest the change after it has been in effect for two years during the lifetime of the Insured. OWNERSHIP Unless a different owner is named in the application, the owner of the contract is the Insured. If a different owner is named, we will show that owner in an endorsement to the contract. This ownership arrangement will remain in effect unless you ask us to change it. You may change the ownership of the contract by sending us a request in a form that meets our needs. We may ask you to send us the contract to be endorsed. If we receive your request in a form that meets our needs, and the contract if we ask for it, we will file and record the change, and it will take effect as of the date you signed the request. While the Insured is living, the owner alone is entitled to any contract benefit and value, and to the exercise of any right and privilege granted by the contract or by us. (ULNT-2005) Page 5 DEATH BENEFIT PROVISIONS We will pay a benefit to the beneficiary at the Insured's death if this contract is in force at the time of that death; that is, if it has not been surrendered and it is not in default past the grace period. If the contract is not in default, the amount we will pay will be the death benefit determined as of the date of the Insured's death reduced by any contract debt (described under Loans). If the contract is in default, and the Insured's death occurs in the grace period (described under Default), we will pay the death benefit reduced by any contract debt and the amount needed to pay charges through the date of death. If the Insured's death occurs past the grace period, no death benefit is payable. Death Benefit This contract has a Type A or Type B death benefit. We show the type of death benefit that applies to this contract under Type of Death Benefit. If this contract has a Type A death benefit, the death benefit on any date is equal to the greater of: (1) the basic insurance amount, and (2) the contract fund before deduction of any monthly charges due on that date, multiplied by the attained age factor that applies. If this contract has a Type B death benefit, the death benefit on any date is equal to the greater of: (1) the basic insurance amount plus the contract fund before deduction of any monthly charges due on that date, and (2) the contract fund before deduction of any monthly charges due on that date, multiplied by the attained age factor that applies. For the purpose of computing the death benefit, if the contract fund is less than zero we will consider it to be zero. Your basic insurance amount and attained age factors are shown in the contract data pages. Additional Death Benefits This contract may provide additional benefits, which may be payable on an Insured's death. If it does, they will be listed on a contract data page, and a form describing the benefit will be included in this contract. Any such benefit will be payable only if the contract is not in default past the grace period at the time of the death. Method of Payment You may choose to have any death benefit paid in a single sum or under one of the optional modes of settlement shown in the Settlement Options provision. Suicide Exclusion If the Insured, whether sane or insane, dies by suicide within two years from the Issue Date, this contract will end and we will return the premiums paid less any contract debt and less any withdrawals. The following statement applies only with respect to an increase in the basic insurance amount resulting from a request you make in accordance with the Change In Basic Insurance Amount provision of this contract. If the Insured, whether sane or insane, dies by suicide after two years from the issue date but within two years of the effective date of an increase in the basic insurance amount, we will pay, as to the increase in amount, no more than the sum of the premiums paid on and after the effective date of the increase. Interest on Death Benefit (ULNT-2005) Any death benefit described above will be credited with interest. The amount will be the greater of: (1) interest calculated in accordance with applicable laws, and (2) interest calculated from the date of death at a rate declared by Pruco Life. Page 6 CHANGE IN BASIC INSURANCE AMOUNT You may change the basic insurance amount, subject to our approval and all these conditions and the paragraphs that follow: 1. You must ask for the change in a form that meets our needs. 2. The change must be one permitted by our current underwriting rules. 3. The amount of an increase or decrease must be at least equal to the minimum increase or decrease in basic insurance amount shown under Contract Limitations in the contract data pages. 4. The basic insurance amount after a decrease must be at least equal to the minimum basic insurance amount shown under Contract Limitations in the contract data pages. 5. If we ask you to do so, you must send us the contract to be endorsed. 6. You must prove to us that the Insured is insurable for any increase. 7. The contract must not be in default. 8. We may deny any increase if it would cause the number of segments shown in the Segment Table in the data pages to exceed ninety-nine. 9. We will not permit an increase before the first contract anniversary. 10. You may not decrease the basic insurance amount if any surrender charge on the decrease exceeds the amount in your contract fund less the administrative charge (shown under Adjustments to the Contract Fund) for the decrease. Surrender Charge on Decreases We may impose a partial surrender charge if you decrease the basic insurance amount. We describe the method we use to determine the maximum partial surrender charge we will deduct from the contract fund below. If there is only one segment (see Segment Table), we will reduce that segment's basic insurance amount by the amount of the decrease. If there is more than one segment, we will decrease the basic insurance amount of each segment based on the proportion of its basic insurance amount to the total of all basic insurance segment amounts in effect just before the change. For any segment incurring a decrease in the basic insurance amount to an amount equal to or greater than the Surrender Charge Threshold shown in the Segment Table, we will not impose a surrender charge. For any segment incurring a decrease in the basic insurance amount to an amount below this threshold, we will subtract the new basic insurance amount from the threshold amount. We will then multiply the surrender charge (see Schedule Of Maximum Surrender Charges for that segment) by the lesser of this difference and the amount of the decrease and divide by the threshold amount and deduct the result from the contract fund. We may decline the change if we determine it would cause the contract to fail to qualify as life insurance under the applicable tax law. A change will take effect only if we approve your request for it at our Home Office and will take effect on the date we approve it. If we approve the change, we will recompute the contract's charges and values in the appropriate tables. A change in the basic insurance amount may also affect the amount of any extra benefits this contract might have. We will send you new contract data pages showing the amount and effective date of the change and the recomputed charges and values. If the Insured is not living on the effective date, the change will not take effect. We may deduct the administrative charge (shown under Adjustments to the Contract Fund) for the change. (ULNT-2005) Page 7 COST OF INSURANCE On each monthly date, we will deduct a charge for the cost of insurance from the contract fund. To determine the maximum charge for the cost of insurance, we use the following method: We determine the maximum cost of insurance rate for each currently effective basic insurance segment amount shown in the Segment Table in the data pages using the maximum monthly rate shown under the Table of Maximum Monthly Insurance Rates for the appropriate rating class. If there is only one basic insurance segment amount currently in effect, we multiply the rate by the net amount at risk (the death benefit minus the contract fund) divided by $1000 to compute the maximum charge for the cost of insurance. If there are two or more basic insurance segments currently in effect, we first allocate the total net amount at risk (the death benefit minus the contract fund) to each basic insurance segment based on the proportion of its basic insurance amount to the total of basic insurance amounts for all segments currently in effect. We multiply the rate by the allocated net amount at risk divided by $1000 for each basic insurance segment and add the results to determine the total maximum charge for the cost of insurance. CHANGING THE TYPE OF DEATH BENEFIT This contract has a Type A or Type B death benefit (see Death Benefit). Subject to our approval, you may change the type of death benefit. We will adjust the basic insurance amount so that the death benefit immediately after the change will remain the same as the death benefit immediately before the change. If there is more than one segment (see Segment Table), we will adjust the basic insurance amount of each segment based on the proportion of its basic insurance amount to the total of basic insurance amounts for all segments in effect just before the adjustment. Type A to B If you are changing from a Type A to a Type B death benefit, we will reduce the basic insurance amount by the contract fund on the date the change takes effect. Type B to A If you are changing from a Type B to a Type A death benefit, we will increase the basic insurance amount by the contract fund on the date the change takes effect. We may deduct from the contract fund the administrative charge shown for changes in the basic insurance amount under Adjustments to the Contract Fund. If the change in the type of death benefit results in a reduction in the basic insurance amount, the basic insurance amount after the decrease must be at least equal to the minimum basic insurance amount, which we show under Contract Limitations in the contract data pages. We may deduct from the contract fund a surrender charge for a reduction in the basic insurance amount as described in the Change In Basic Insurance Amount provision. A change in the type of death benefit will take effect only if we approve your request at our Home Office. If we approve the change, we will recompute the contract's charges, values and limitations shown in the contract data pages. The change will take effect on the monthly date that coincides with or next follows the date we approve your request. We will send you new contract data pages showing the amount and effective date of the change in basic insurance amount and the recomputed charges, values and limitations. Your request for a change must be in a form that meets our needs. We may require you to send us this contract before we make the change. (ULNT-2005) Page 8 BENEFICIARY You may designate or change a beneficiary by sending us a request in a form that meets our needs. We may ask you to send us the contract to be endorsed. If we receive your request, and the contract if we ask for it, we will file and record the change and it will take effect as of the date you signed the request. But if we make any payment(s) before we receive the request, we will not have to make the payment(s) again. Any beneficiary's interest is subject to the rights of any assignee we know of. When a beneficiary is designated, any relationship shown is to the Insured, unless otherwise stated. To show priority, we may use numbered classes, so that the class with first priority is called class 1, the class with next priority is called class 2, and so on. When we use numbered classes, these statements apply to beneficiaries unless the form states otherwise: 1. One who survives the Insured will have the right to be paid only if no one in a prior class survives the Insured. 2. One who has the right to be paid will be the only one paid if no one else in the same class survives the Insured. 3. Two or more in the same class who have the right to be paid will be paid in equal shares. 4. If none survives the Insured, we will pay in one sum to the Insured's estate. Before we make a payment, we have the right to decide what proof we need of the identity, age, or other facts about any persons designated as beneficiaries. If beneficiaries are not designated by name and we make payment(s) based on that proof, we will not have to make the payment(s) again. (ULNT-2005) Page 9 PREMIUM PAYMENT Payment of Premiums The minimum initial premium shown in the contract data pages is due on or before the contract date. There is no insurance under this contract until that premium is paid. We may require an additional premium if adjustments to premium payments plus any contract fund charges due on or before the payment date exceeds the minimum initial premium. Subject to the limitations below, additional premiums may be paid at any time during the Insured's lifetime up to attained age 121 as long as the contract is not in default beyond the grace period. Premiums may be paid at one of our offices or to one of our authorized representatives. We will give a signed receipt upon request. The minimum premium we will accept is shown on a contract data page. We have the right to refuse to accept a premium payment that would in our opinion cause this contract to fail to qualify as life insurance under applicable tax law. We also have the right to refuse to accept any payment that increases the death benefit by more than it increases the contract fund. Invested Premium Amount The invested premium amount is the portion of each premium you pay that we add to the contract fund. It is equal to the premium paid minus the adjustments to premium payments shown on a contract data page. Crediting the Initial Premium Payment If we receive the first premium payment on or before the contract date, we will credit the invested premium amount to the contract fund on the contract date. If we receive the first premium payment after the contract date, we will credit the premium amount to the contract fund on the payment date. CONTRACT FUND When you make your first premium payment, the invested premium amount, less any charges due on or before that day, becomes your contract fund. Amounts are added to and subtracted from the contract fund as shown under Adjustments to the Contract Fund in the contract data pages. The contract fund is used to pay charges under this contract and will determine, in part, whether this contract will remain in force or go into default. The contract fund is also used to determine your loan and surrender values, the amount you may withdraw, and the death benefit. Cash Value The cash value at any time is the contract fund less any surrender charge. We show the maximum surrender charge for each segment (see Segment Table) in the Schedule of Maximum Surrender Charges for that segment. If there are two or more segments, we will add their surrender charges and deduct the total from the contract fund. Net Cash Value The net cash value at any time is the cash value less any contract debt. If the contract is in default, the net cash value is zero. Net Amount at Risk (ULNT-2005) The net amount at risk is used to determine the cost of insurance as described under Adjustments to the Contract Fund. It is equal to the death benefit (see Death Benefit) minus the contract fund. Page 10 DEFAULT Excess Contract Debt Default If contract debt ever grows to be equal to or more than the cash value, the contract will have excess contract debt and will be in default. Cash Value Default On each monthly date, we will determine the cash value. If the cash value is greater than zero and the contract has no excess contract debt, the contract will remain in force until the next monthly date. If the cash value is zero or less, the contract is in default. Notice of Default If the contract is in default, we will mail you a notice stating the amount we will need to keep the contract in force. That amount will equal a premium which we estimate will keep the contract in force for three months from the date of default. We grant a 61-day grace period from the date we mail the notice to pay this amount. The contract will remain in force during this period. If that amount is not paid to us by the end of the 61-day grace period, the contract will end and have no value. (ULNT-2005) Page 11 REINSTATEMENT If this contract ends without value, as described under Default, you may reinstate it. The following conditions must be satisfied: 1. The contract must not have been in default for more than 5 years. 2. You must prove to us that the Insured is insurable for the contract. 3. You must pay us a charge equal to: (a) an amount, if any, required to bring the cash value to zero on the date the contract went into default, plus (b) the deductions from the contract fund during the grace period following the date of default, plus (c) a premium that we estimate will be sufficient after deduction of the charges shown under Adjustments to Premium Payments to cover the deductions from the contract fund for three monthly dates starting on the date of reinstatement. 4. Any existing contract debt on the date of default will be cancelled and will not be reinstated. The date of reinstatement will be the date we approve your request. We will deduct all required charges from your payment and put the balance in your contract fund. If we approve the reinstatement, we will credit the contract fund with a refund of that part of any surrender charge deducted at the time of default which would have been charged if the contract were surrendered immediately after reinstatement. SURRENDER You may surrender this contract for its net cash value (see Contract Fund). To do so, you must ask us in a form that meets our needs. We may require you to send us the contract. We will usually pay any net cash value within seven days after we receive your request and the contract (if we require it) at our Home Office. But we have the right to postpone paying it for up to six months. If we do so for more than thirty days, we will pay interest at the rate of 3% a year. (ULNT-2005) Page 12 WITHDRAWALS You may make withdrawals from the contract subject to all these conditions and the paragraph that follows: 1. You must ask for the withdrawal in a form that meets our needs. 2. The net cash value after withdrawal may not be less than or equal to zero after deducting (a) any charges associated with the withdrawal and (b) an amount that we estimate will be sufficient to cover the contract fund deductions for two monthly dates following the date of withdrawal. 3. You may not withdraw less than the minimum amount shown under Contract Limitations. 4. The basic insurance amount after withdrawals must be at least equal to the minimum basic insurance amount shown under Contract Limitations. Any amount withdrawn may not be repaid except as a premium subject to charges. Effect on Contract Fund We will reduce your contract fund on the date we approve your request by the withdrawal amount and any charges listed under Adjustments to the Contract Fund. We may charge an administrative fee as stated under Adjustments to the Contract Fund. Effect on Basic Insurance Amount If you have a Type B death benefit, withdrawals will not affect the basic insurance amount. If you have a Type A death benefit and the withdrawal would cause the net amount at risk (see Contract Fund) to increase, we will reduce the basic insurance amount and, consequently, your death benefit to offset this increase. The reduction in the basic insurance amount will never be more than the withdrawal amount. If we reduce the basic insurance amount, we will recompute the contract's charges, values and limitations. We will send you new contract data pages showing these changes. We may also deduct a surrender charge from the contract fund as described in the Change In Basic Insurance Amount provision. We will usually pay any withdrawal amount within seven days after we receive your request and the contract (if we require it) at our Home Office. But we have the right to postpone paying it for up to six months. If we do so for more than thirty days, we will pay interest at the rate of 3% a year. (ULNT-2005) Page 13 LOANS Subject to the minimum loan requirement and the requirements of this provision, you may at any time borrow any amount up to the current loan value less any existing contract debt. Loan Value If the contract is not in default, the loan value at any time is equal to the cash value. If the contract is in default, it has no loan value. Contract Debt Contract debt at any time means the loan on the contract at that time, plus the interest we have charged that is not yet due and that we have not yet added to the loan. Loan Requirements For us to approve a loan, the following requirements must be met: you must assign this contract to us as sole security for the loan; the Insured must be living; and the resulting contract debt must not be more than the loan value. If there is already contract debt when you borrow from us, we will add the new amount you borrow to that debt. Interest Charge We will charge interest daily on any loan. Interest is due on each contract anniversary, or when the loan is paid back, whichever comes first. If interest is not paid when due, we will increase the loan amount by any unpaid interest. Except as stated below, we charge interest at an effective annual rate shown under Loan Interest Rate in the contract data pages. Preferred Loans A portion of the amount you may borrow on or after the 10th contract anniversary will be considered a Preferred Loan up to an amount equal to the maximum preferred loan amount described below. Preferred Loans are charged interest at an effective annual rate shown under Preferred Loan Interest Rate in the contract data pages. Maximum Preferred Loan Amount The maximum preferred loan amount available starting on the 10th contract anniversary is (A) minus (B), where (A) is the total amount you may borrow, and (B) is the total premiums paid less total withdrawals, if any. If (B) is less than zero, we will consider it to be zero. Effect on Contract Fund When you take a loan, the amount of the loan continues to be a part of the contract fund and is credited with interest at an effective rate of 3% a year. (ULNT-2005) Page 14 GENERAL PROVISIONS Annual Report Once each contract year we will send you a report. It will show: the current death benefit; the amount of the contract fund; the cash value; any contract debt and the interest rate we are charging; premiums paid, interest credited, charges deducted, and withdrawals taken since the last report. The report may also show any other data that may be required where this contract is delivered. Payment of Death Claim If we settle this contract in one sum as a death claim we will usually pay the proceeds within seven days after we receive at our Home Office proof of the Insured's death and any other information we need to pay the claim. But we have the right to postpone paying it for up to six months. Currency Any money we pay, or that is paid to us, must be in United States currency. Any amount we owe will be payable at our Corporate Office. Misstatement of Age or Sex If the Insured's stated age or sex or both are not correct, we will change each benefit and any amount to be paid to what the most recent deductions from the contract fund would have provided at the Insured's correct age and sex. Assignment We will not be deemed to know of an assignment unless we receive it, or a copy of it, at our Home Office. We are not obliged to see that an assignment is valid or sufficient. This contract may not be assigned to any employee benefit plan or program without our consent. This contract may not be assigned if such assignment would violate any federal, state, or local law or regulation prohibiting sex distinct rates for insurance. Change in Plan You may be able to have this contract changed to another plan of life insurance. Any change may be made only if we consent, and will be subject to conditions and charges that are then determined. Factors Subject To Change Charges deducted from premium payments and the contract fund may change from time to time, subject to the maximums shown in the contract data pages. In deciding whether to change any of these charges, we will periodically consider factors such as mortality, persistency, expenses, taxes and interest and/or investment experience to see if a change in our assumptions is needed. Changes in factors will be by class. All changes will be determined only prospectively; that is, we will not recoup prior losses or distribute prior gains by means of these changes. Non-Participating This contract will not share in our profits or surplus earnings. We will pay no dividends on it. Applicable Tax Law This contract has been designed to satisfy the definition of life insurance for Federal income tax purposes under Section 7702 of the Internal Revenue Code of 1986, as amended. We reserve the right, however, to decline any change we determine would cause this contract to fail to qualify as life insurance under the applicable tax law. This includes changing the basic insurance amount, withdrawals, and changing the type of death benefit. We also have the right to change this contract, to require additional premium payments, or to make distributions from this contract to the extent necessary to continue to qualify this contract as life insurance. Finally, we reserve the right to take whatever action is necessary to prevent the contract from becoming a modified endowment contract under Section 7702A of the Internal Revenue Code of 1986 unless you have otherwise indicated to us in writing that you want a modified endowment contract. Age 121 We discontinue the monthly charges from the contract fund on the first contract anniversary on or following the Insured's 121st birthday. You may continue the contract after that anniversary and it will then continue to operate as described in its provisions, (including the Death Benefit and Contract Fund provisions), although you may not make any premium payments and no monthly charges will be deducted from the contract fund. Loans, loan repayments, and withdrawals can continue to be made after age 121. (ULNT-2005) Page 15 BASIS OF COMPUTATION Mortality Basis and Interest Rate We compute maximum monthly insurance rates using: 1. 2. age last birthday; and 4. (ULNT-2005) the issue age, sex, smoker and non-smoker status, and rating class of the Insured and the length of time since the contract date; 3. Minimum Legal Values the Commissioners 2001 Standard Ordinary Smoker and Nonsmoker Mortality Tables without TenYear Select Factors; an effective interest rate of 3% a year. The cash surrender values provided by this contract are at least as large as those set by law where it is delivered. Where required, we have given the insurance regulator a detailed statement of how we compute values and benefits. Page 16 SETTLEMENT OPTIONS Options Described You may choose to have the proceeds (that is, any death benefit or any amount payable upon surrender of the contract) paid in a single sum or under one of the optional modes of settlement described below. If the person who is to receive the proceeds of this contract wishes to take advantage of one of these optional modes, we will furnish, on request, details of the options we describe below or any others we may have available at the time the proceeds become payable. Option 1 (Instalments for a Fixed Period) We will make equal payments for up to 25 years. The Option 1 Table shows the minimum amounts we will pay. Option 2 (Life Income) We will make equal monthly payments for as long as the person on whose life the settlement is based lives, with payments certain for 120 months. The Option 2 Table shows the minimum amounts we will pay. But, we must have proof of the date of birth of the person on whose life the settlement is based. Option 3 (Interest Payment) We will hold an amount at interest. We will pay the interest annually, semi-annually, quarterly, or monthly. Option 4 (Instalments of a Fixed Amount) We will make equal annual, semi-annual, quarterly, or monthly payments for as long as the available proceeds provide. Option 5 (NonParticipating Income) We will make payments like those of any annuity we then regularly issue that: (1) is based on United States currency; (2) is bought by a single sum; (3) does not provide for dividends; and (4) does not normally provide for deferral of the first payment. Each payment will be at least equal to what we would pay under that kind of annuity with its first payment due on its contract date. If a life income is chosen, we must have proof of the date of birth of any person on whose life the option is based. Option 5 cannot be chosen more than 30 days before the due date of the first payment. Interest Rate Payments under Options 1, 3 and 4 will be calculated assuming an effective interest rate of at least 1.5% a year. We may include more interest. (ULNT-2005) Page 17 SETTLEMENT OPTIONS TABLES OPTION 1 TABLE MINIMUM AMOUNT OF MONTHLY PAYMENT FOR EACH $1,000, THE FIRST PAYABLE IMMEDIATELY Number of Years Monthly Payment 1 2 3 4 5 $83.90 42.26 28.39 21.45 17.28 6 7 8 9 10 14.51 12.53 11.04 9.89 8.96 11 12 13 14 15 8.21 7.58 7.05 6.59 6.20 16 17 18 19 20 5.85 5.55 5.27 5.03 4.81 21 22 23 24 25 4.62 4.44 4.28 4.13 3.99 Multiply the monthly amount By 2.996 for quarterly, 5.981 for semi-annual or 11.919 for annual. (ULNT-2005) OPTION 2 TABLE MINIMUM AMOUNT OF MONTHLY PAYMENT FOR EACH $1,000, THE FIRST PAYABLE IMMEDIATELY AGE LAST AGE LAST BIRTHDAY Male Female BIRTHDAY Male Female 5 and under 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 $2.72 $2.68 2.73 2.74 2.75 2.76 2.77 2.78 2.79 2.80 2.82 2.83 2.84 2.85 2.87 2.88 2.89 2.91 2.93 2.94 2.96 2.98 3.00 3.01 3.03 3.06 3.08 3.10 3.13 3.15 3.18 3.21 3.23 3.27 3.30 3.33 3.37 3.40 3.44 3.48 3.53 3.57 3.62 3.67 2.69 2.69 2.70 2.71 2.72 2.73 2.74 2.75 2.76 2.77 2.78 2.79 2.80 2.81 2.83 2.84 2.85 2.87 2.88 2.90 2.91 2.93 2.94 2.96 2.98 3.00 3.02 3.04 3.07 3.09 3.11 3.14 3.16 3.19 3.22 3.25 3.29 3.32 3.35 3.39 3.43 3.47 Page 18 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 and over $3.72 3.77 3.83 3.88 3.95 4.01 4.08 4.15 4.22 4.30 4.38 4.47 4.56 4.66 4.76 4.87 4.98 5.10 5.23 5.36 5.49 5.64 5.78 5.94 6.10 6.26 6.43 6.60 6.78 6.95 7.13 7.31 7.49 7.67 7.85 8.02 8.18 8.33 8.48 8.62 8.75 8.87 8.98 $3.51 3.56 3.61 3.66 3.71 3.76 3.82 3.88 3.94 4.01 4.08 4.16 4.24 4.32 4.41 4.50 4.60 4.71 4.82 4.94 5.06 5.19 5.33 5.48 5.63 5.79 5.96 6.14 6.33 6.52 6.71 6.92 7.12 7.33 7.53 7.73 7.93 8.12 8.29 8.46 8.61 8.75 8.88 (This page intentionally left blank) (ULNT-2005) Page 19 Flexible Premium Universal Life Insurance Policy. Insurance payable only upon death. Cash values reflect premium payments, interest credited to the contract fund, and charges. Non-participating. ULNT-2005 Page 20 The Northwestern Mutual Life Insurance Company agrees to pay the benefits provided in this policy (the " Policy" ), subject to its terms and conditions. Signed at Milwaukee, Wisconsin on the Date of Issue. WHOLE LIFE POLICY Eligible For Annual Dividends Life Insurance Benefit payable on death of Insured. Premiums payable for period shown on page 3. Right To Return Policy. Please read this Policy carefully. The Policy may be returned by the Owner for any reason within ten days after it was received. The Policy may be returned to the Northwestern Mutual agent who sold it to you or to the Company at 720 East Wisconsin Avenue, Milwaukee, Wisconsin 53202 ( " Home Office " ). If returned, the Policy will be considered void from the beginning. Any premium paid will be refunded. TT.WL.(0608) This Policy is a legal contract between the Owner and The Northwestern Mutual Life Insurance Co mpany. Read your Policy carefully. TABLE OF CONTENTS POLICY SCHEDULE PAGES SECTION 1. THE CONTRACT Section Section Section Section Section Section Section Section 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Life Insurance Benefit Entire Contract; Changes Incontestability Suicide Policy Date, Date of Issue and Attained Age Misstatement of Age or Sex Payments by the Company Insurability Requirements SECTION 2. OWNERSHIP Section Section Section Section 2.1 2.2 2.3 2.4 The Owner Transfer of Ownership Naming and Changing a Successor Owner Collateral Assignment SECTION 3. PREMIUMS AND REINSTATEMENT Section Section Section Section 3.1 3.2 3.3 3.4 Premium Payment Amount of Premium; Adjustments Unscheduled Additional Premium Option Reinstatement SECTION 4. DIVIDENDS Section 4.1 Annual Dividends Section 4.2 Use of Dividends Section 4.3 Dividend at Death SECTION 5. PAID-UP ADDITIONS SECTION 6. CASH VALUE, EXTENDED TERM INSURANCE AND PAID-UP INSURANCE Section Section Section Section Section 6.1 6.2 6.3 6.4 6.5 Cash Value Extended Term Insurance Paid-up Insurance Cash Surrender Table of Guaranteed Values; Basis of Values SECTION 7. LOANS Section Section Section Section Section Section 7.1 7.2 7.3 7.4 7.5 7.6 Policy and Premium Loans Loan Value Policy Debt Loan Interest Specified Rate Loan Interest Option Variable Rate Loan Interest Option Used by permission of the Northwestern Mutual Life Insurance Company, Milwaukee, Wisconsin. All rights reserved TT.WL.(0608) SECTION 8. CHANGE OF POLICY Section 8.1 Reduction of Policy Amount Section 8.2 Change of Plan SECTION 9. BENEFICIARIES Section Section Section Section Section 9.1 9.2 9.3 9.4 9.5 Definition of Beneficiaries Naming and Change of Beneficiaries Succession in Interest of Beneficiaries Trustee as Beneficiary General SECTION 10. PAYMENT OF POLICY BENEFITS Section 10.1 Payment of Proceeds Section 10.2 Payment Plans ADDITIONAL BENEFITS (if any) APPLICATION TT.WL.(0608) POLICY SCHEDULE PAGES Date of Issue - June 30, 2008 Plan and Additional Benefits Insurance Amount Annual Premiums Payable For Whole Life Paid-up at 90 $200,000 $2,940.00 55 Years A premium is payable on June 30, 2008 and every June 30 after that. The first premium is $ 2,940.00. The minimum annual premium is $2,940.00. See Section 3.2. To determine the premium when paid more often than annually, see page 6. The Owner may elect the Specified Rate or the Variable Rate loan interest option. See Sections 7.4 through 7.6 of the Policy. The Specified Rate loan interest option was elected on the Application. This Policy is issued in a Premier (Non-Tobacco) premium classification. Direct Beneficiary Jane M. Doe Owner John J. Doe Insured John J. Doe Age and Sex 35 Male Policy Date June 30, 2008 Policy Number 00 000 000 Plan Whole Life Paid-up at 90 Insurance Amount $200,000 TT.WL.(0608) 3 Policy Number 00 000 000 TABLE OF GUARANTEED VALUES For $200,000 Insurance Amount End of Policy Year June 30, 1 2 3 4 5 2009 2010 2011 2012 2013 0 1,922 3,914 5,969 8,094 0 8,766 17,233 25,382 33,237 June 30, 2009 November 6, 2017 October 1, 2023 June 18, 2028 December 9, 2031 6 7 8 9 10 2014 2015 2016 2017 2018 10,289 12,552 14,881 17,275 19,733 40,808 48,089 55,082 61,794 68,230 October 25, 2034 March 9, 2037 March 9, 2039 December 13, 2040 July 24, 2042 11 12 13 14 15 2019 2020 2021 2022 2023 22,252 24,838 27,492 30,236 33,070 74,397 80,318 86,003 91,503 96,820 January 15, 2044 May 29, 2045 August 24, 2046 October 15, 2047 November 7, 2048 16 17 18 19 20 2024 2025 2026 2027 2028 35,987 38,986 42,056 45,197 48,398 101,944 106,877 111,608 116,145 120,483 November 6, 2049 October 15, 2050 September 3, 2051 July 5, 2052 April 19, 2053 AGE 60 AGE 65 AGE 70 2033 2038 2043 65,213 83,228 101,861 139,459 154,660 166,747 September 27, 2056 September 3, 2059 April 30, 2061 Cash Value Paid-up Insurance Extended Term Insurance To* *Based on Extended Term Insurance described in Section 6.2 and amounts shown on page 3. Values are increased by Paid-up Additions and dividend accumulations and decreased by Policy Debt. Values shown at end of the Policy year do not reflect any premium due on that Policy anniversary. TT.WL.(0608) 4 Policy Number 00 000 000 TABLE OF CASH VALUES For $1.00 of Paid-up Additions End of Policy Year June 30, Cash Value End of Policy Year June 30, Cash Value 0 1 2 3 4 5 2008 2009 2010 2011 2012 2013 0.20443 0.21173 0.21928 0.22710 0.23517 0.24351 44 45 46 47 48 2052 2053 2054 2055 2056 0.74256 0.75622 0.76947 0.78223 0.79456 6 7 8 9 10 2014 2015 2016 2017 2018 0.25213 0.26102 0.27016 0.27956 0.28921 49 50 51 52 53 2057 2058 2059 2060 2061 0.80648 0.81794 0.82886 0.83919 0.84886 11 12 13 14 15 2019 2020 2021 2022 2023 0.29910 0.30925 0.31967 0.33044 0.34156 54 55 56 57 58 2062 2063 2064 2065 2066 0.85785 0.86615 0.87375 0.88093 0.88769 16 17 18 19 20 2024 2025 2026 2027 2028 0.35300 0.36477 0.37682 0.38914 0.40170 59 60 61 62 63 2067 2068 2069 2070 2071 0.89403 0.89991 0.90529 0.91046 0.91537 21 22 23 24 25 2029 2030 2031 2032 2033 0.41443 0.42737 0.44051 0.45393 0.46762 64 65 66 67 68 2072 2073 2074 2075 2076 0.91998 0.92420 0.92785 0.93142 0.93492 26 27 28 29 30 2034 2035 2036 2037 2038 0.48152 0.49558 0.50972 0.52390 0.53814 69 70 71 72 73 2077 2078 2079 2080 2081 0.93833 0.94163 0.94485 0.94799 0.95105 31 32 33 34 35 2039 2040 2041 2042 2043 0.55243 0.56682 0.58135 0.59602 0.61087 74 75 76 77 78 2082 2083 2084 2085 2086 0.95401 0.95689 0.95968 0.96237 0.96498 36 37 38 39 40 2044 2045 2046 2047 2048 0.62581 0.64081 0.65568 0.67043 0.68511 79 80 81 82 83 2087 2088 2089 2090 2091 0.96749 0.96991 0.97225 0.97450 0.97666 41 42 43 2049 2050 2051 0.69970 0.71420 0.72852 84 85 86 2092 2093 2094 0.97873 0.98064 1.00000 Values during a Policy year will reflect any portion of the year's premium paid and the time elapsed in that year. These Cash Values are not guaranteed after the first 20 Policy years for increases in scheduled additional premiums or unscheduled additional premiums paid after the first 20 Policy years. TT.WL.(0608) 5 Policy Number 00 000 000 PREMIUM PAYMENT FREQUENCIES OTHER THAN ANNUAL The total amount of premiums due per year when paid on frequencies other than annual is greater than the annual premium shown on page 3. Premiums paid on a basis other than annual are increased to reflect the time value of money and to cover the administrative costs of processing the additional premium payments. If premiums are paid more often than annually (see Section 3.1) , the premium amount will be determined as follows: Premium Frequency Multiply Annual Premium by: Every 6 months Every 3 months Monthly 0.5096 0.2573 0.0863 Depending upon the frequency premiums are paid and the premium payment method used, the Company may also charge an administrative fee to cover the additional costs associated with the payment method. TT.WL.(0608) 6 SECTION 1. THE CONTRACT 1.1 LIFE INSURANCE BENEFIT 1.2 ENTIRE CONTRACT; CHANGES The Northwestern Mutual Life Insurance Company ( " Company" ) will pay the Life Insurance Benefit on the death of the Insured while this Policy is in force. Subject to the terms and conditions of the Policy, the payment of the Life Insurance Benefit will be: This Policy, together with the attached application and any application supplements (together referred to in this policy as " Application " ), and any attached amendments, endorsements, riders and additional benefits, are the entire contract. Statements in the Application are representations and not warranties. This Policy may be changed by the Company to maintain compliance with applicable state and federal law or to assure continued qualification of the Policy under federal tax laws. A change in the terms of, or a waiver of the Company's rights under, the Policy is valid only if it is approved in writing by an officer of the Company. The Company may require that the Policy be sent to it for endorsement to show a change or waiver. No agent has the authority to change the Policy or to waive the Company's rights thereunder. made after proof of the death of the Insured is received at the Home Office; and made to the Beneficiaries under Section 9. The amount of the Life Insurance Benefit will be the sum of the following: the Insurance Amount shown on page 3; plus the amount of any Paid-up Additions in force under Section 5; plus the amount of any dividend accumulations (Section 4.2); plus 1.3 INCONTESTABILITY the amount of any premium refund (Section 3.1) and any dividend at death (Section 4.3); minus the sum of the following: The Company will not contest this Policy after the Policy has been in force, during the lifetime of the Insured, for two years from the Date of Issue or for two years from the effective date of a reinstatement (Section 3.4). A change to the terms of the Policy after the Date of Issue, which occurred upon the request of the Owner and was subject to the Company's insurability requirements, will be incontestable after the change has been in force, during the lifetime of the Insured, for two years from the effective date of the change. In issuing the insurance, the Company has relied on the Application. While the insurance is contestable, the Company, on the basis of a misstatement in the Application, may rescind the insurance or deny a claim. the amount of any Policy Debt (Section 7.3); plus the amount of any Adjustment to Life Insurance Benefit During Grace Period as described in Section 3.1; plus the amount of any unpaid additional premium used to purchase Paid-up Additions (Section 5). These amounts will be determined as of the date of the Insured's death. Even though the Owner does not have the right to take any policy loans after the date of the Insured's death, any policy loans that are taken after the date of the Insured's death will be deducted from the Life Insurance Benefit. 1.4 SUICIDE If the Insured dies by suicide within one year from the Date of Issue, the amount payable by the Company will be limited to the premiums paid, less the amount of any Policy Debt. If the Insured dies by suicide within one year from the date of a change to the terms of the Policy, which occurred upon the request of the Owner and was subject to the Company's insurability requirements, the amount payable with respect to such change will be limited to the premiums paid, less the amount of any Policy Debt. The amount of the Life Insurance Benefit when the Insured dies while the Policy is in force as Extended Term Insurance or Paid-up Insurance will be determined under Section 6.2 or 6.3. TT.WL.(0608) 7 1.5 POLICY DATE, DATE OF ISSUE AND ATTAINED AGE which the premiums paid would have purchased at the correct age and sex. Policy months, years, and anniversaries are computed from the Policy Date. The contestable and suicide periods begin with the Date of Issue. These dates are shown on page 3. The Date of Issue for any insurance issued under Additional Premiums Scheduled After Issue (Section 3.2) or Unscheduled Additional Premium Option (Section 3.3) will be shown on an amendment to the schedule of Benefits and Premiums. Attained Age is Issue Age (shown on page 3) plus the number of complete Policy years that have elapsed since the Policy Date. 1.7 PAYMENTS BY THE COMPANY All payments by the Company under this Policy are payable in United States dollars at the Home Office. 1.8 INSURABILITY REQUIREMENTS To make some changes under this Policy, the Insured must meet the Company's insurability requirements. These requirements are as follows: the Insured is alive; 1.6 MISSTATEMENT OF AGE OR SEX evidence of insurability must be given that is satisfactory to the Company; and If the age or sex of the Insured has been misstated and has not been corrected through a policy change, the amount payable will be the amount under the Company's underwriting standards, the Insured is in an underwriting classification that is the same as, or better than, the one for this Policy. SECTION 2. OWNERSHIP 2.1 THE OWNER subsequent Owner for any payment or other action taken by the Company until the above information is received at the Home Office in a form acceptable to the Company. The transfer will then take effect as of the date the transfer form was signed. The Company may require that the Policy be sent to it for endorsement to show the transfer. The Owner is named on page 3. All Policy rights may be exercised without the consent of any Beneficiaries by the Owner, the Owner's successor or the Owner's transferee. If the Policy has more than one Owner, Policy rights must be exercised only by authorization of all Owners. After the death of the Insured, Policy rights may be exercised only as provided in Sections 9 and 10. 2.3 NAMING AND CHANGING A SUCCESSOR OWNER 2.2 TRANSFER OF OWNERSHIP If the Owner is not the Insured, the Owner may name or change a successor owner who will become the new owner upon the Owner's death. Naming or changing a successor owner will be effective upon receipt at the Home Office of a written request that is acceptable to the Company, including any required information about the successor owner. The Owner may transfer the ownership of this Policy by providing the Company with written proof of the transfer and supplying the information in a form that is acceptable to the Company, including supplying any required information about the new Owner. The Company will not be responsible to a TT.WL.(0608) 8 2.4 COLLATERAL ASSIGNMENT The interest of the Beneficiaries will be subject to any collateral assignment made either before or after the Beneficiaries are named. The Owner may assign this Policy as collateral security. The Company is not responsible for the validity or effect of the collateral assignment. The Company will not be responsible to an assignee for any payment or other action taken by the Company before receipt of the assignment in writing at the Home Office. A collateral assignee is not an Owner. A collateral assignment is not a transfer of ownership. Ownership can be transferred only by complying with Section 2.2 or Section 2.3. SECTION 3. PREMIUMS AND REINSTATEMENT 3.1 PREMIUM PAYMENT provide an annual percentage rate calculation upon request. Payment. All premiums after the first are payable at the Home Office or to a payment center designated by the Company. All payments must be made in United States dollars payable through a United States financial institution. A receipt signed by an officer of the Company will be furnished on request. Each premium must be paid on or before its due date. The date when each premium is due and the number of years for which premiums are payable are described on page 3. A change in premium frequency will take effect when the Company accepts a premium on a new frequency. Grace Period. A grace period of 31 days will be allowed to pay a premium that is not paid on its due date. The Policy will be in full force during this period. If the premium is not paid within the grace period, the Policy will terminate as of the due date unless it continues as Extended Term Insurance or Paid-up Insurance under Sections 6.2 or 6.3. No premiums may be paid while the Policy is in force as Extended Term Insurance or Paid-up Insurance under Sections 6.2 or 6.3, except as provided in Reinstatement (Section 3.4). Adjustment To Life Insurance Benefit During Grace Period. If the Insured dies during the grace period, the amount of the unpaid premium will be deducted from the Life Insurance Benefit. Frequency. Premiums may be paid every 3, 6 or 12 months. The Company may permit the payment of premiums on other frequencies under the terms of payment programs (such as a payment program that uses electronic funds transfer). Pre miu m Refund At Death. If the premium paid for the Policy year in which the Insured dies exceeds: the premium paid on an annual basis; multiplied by On request, the Company will provide: the amount of the premium due on any available frequency for any Policy year; the fraction of the Policy year that has elapsed at the time of death, then the Company will refund this excess amount. The refund will not include: the annual total of premiums due (including the amount of the administrative fee, if any) if paid on frequencies other than annual; and any premium amount used to purchase a Paidup Addition under Section 5; and the amount by which that total differs from the annual premium. The total amount of premiums due per year when paid on frequencies other than annual is greater than the annual premium (see page 6). The Company also will TT.WL.(0608) any Unscheduled Additional Premium paid under Section 3.3. 9 3.2 AMOUNT OF PREMIUM; ADJUSTMENTS 3.3 UNSCHEDULED ADDITIONAL PREMIUM OPTION Scheduled And Minimu m Pre miu ms. The premium due on this Policy is the scheduled premium. The scheduled premium is the sum of the minimum premium, any scheduled additional premium under Section 3.2, and any premium that is due for any additional benefit that is a part of this Policy. The annual premium amounts are shown on page 3. Unscheduled additional premiums may be paid to the Company at any time before the earlier of either the Policy anniversary that is nearest to the Insured's 85th birthday or the end of the premium payable period shown on page 3. An unscheduled additional premium may be paid only if, at the time the premium is paid: Additional Pre miu ms Scheduled At Issue. If requested on the Application, this Policy may have been issued with premiums that are larger than the minimum premium. The amount of the additional premium is shown on page 3. the Insured meets the insurability requirements stated in Section 1.8; and Additional Pre miu ms Scheduled After Issue. The Owner may pay additional premiums by requesting that the premium payable on the Policy be increased. This request may be made at any time before the earlier of either the Policy anniversary that is nearest to the Insured's 85th birthday or the end of the premium payable period shown on page 3. Additional premiums may be scheduled only if, at the time the increases are applied for: the total amount of the unscheduled additional premiums and other premiums paid to the Company under any policy for purchases of paid-up life insurance on the life of the Insured is within the Company's limits for such premiums; however, the Company may not set a limit below $1,000. the insurance in force after appIying the unscheduled additional premium will be within the Company's issue limits; and Each unscheduled premium may not be less than $100. Each unscheduled premium will be used, as of the date the premium is paid, to purchase Paidup Additions as described in Section 5. the Insured satisfies the insurability requirements stated in Section 1.8; and the insurance in force after applying the scheduled additional premiums will be within the Company's issue limits; and 3.4 REINSTATEMENT the total amount of the scheduled additional premiums and other premiums paid to the Company under any policy for purchases of paid-up life insurance