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line-height: 108%; } span.s3f06f480-db49-472e-9a19-d942334ae448000026 { background: white; font-family: Symbol; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; display: inline-block; text-indent: 0; width: 0.046in; } </style></head><body><div><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">DEPARTMENT OF LABOR AND REGULATION</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">DIVISION OF INSURANCE</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">POTENTIAL RATE INCREASE DISCLOSURE FORM</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">Chapter </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:21"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000003">20:06:21</span></a></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">APPENDIX I</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">SEE: § </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:21:60"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000003">20:06:21:60</span></a></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">    </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Source:</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> 28 SDR 157, effective May 19, 2002; 33 SDR 230, effective July 2, 2007</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">; 44 SDR 184, effective June 25, 2018</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000005"><br />&#x200e;</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000006">Instructions:</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> Insurers shall provide all of the following information to the applicant regarding premium, premium adjustments, potential premium increases, and policyholder options in the event of a premium increase except as noted below. This form does not need to be provided in the event the policy does not reserve the right to increase rates.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">As used in this Appendix:</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">"Policy," is a policy, certificate, or rider, as applicable.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">"Premium," includes premium schedules, as applicable.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">Companies may substitute whichever term is appropriate to reflect the long-term care insurance for which the applicant is applying.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Long-Term Care Insurance</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Potential Premium Increase Disclosure Form</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><div align="left"><table dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000008"><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000009"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Important Notice:</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> Your long-term care insurance company </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">may</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> increase the premium for your policy </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">every year</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">. You have certain rights and it's important that you understand them before you buy a long-term care insurance policy. Please read this information and be sure you understand it before you buy a policy.</span></p></td></tr></table></div><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000006">This policy is guaranteed renewable.</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> Companies can increase the premiums for</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007">guaranteed renewable policies in the future. The compan</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007">y</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000006">cannot</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> increase your premiums</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> </span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007">because </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000006">you are</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> older or </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000006">your</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> health declines. It can increase premiums based on the</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007">experience of</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007">all individuals with a</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007"> </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000007">policy like yours.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">    </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">1.</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">  </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">What Is Your Premium?</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000010"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">        The agent/company has quoted you a premium of</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">[$</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">_____</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">] for this policy. This</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> </span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">is not </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">a</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> final premium. The premium might change during the underwriting process or</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> </span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">if you choose different benefits. The premium you'll be required to pay for </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">y</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">our polic</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">y </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">will be [shown on the schedule page of] [will be attached to] your policy.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">    </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">2.</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">  </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">How Will I Know If My Premium Is Changing?</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000010"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">        The company will send you a notice. The notice wil</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">l</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> include the new premium</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> </span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">and when you will start paying it. It also will give you ways </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">y</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">ou could avoid pa</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">y</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">ing</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> </span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">a higher premium. One likely choice will be to keep </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">y</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">our insurance policy</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">,</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> but with</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> </span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">fewer or lower benefits than </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">y</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">ou bought. Another choice may be to stop paying</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> </span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">premiums and have a "paid-up" policy with fewer or lower benefits than the policy</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0"> y</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">ou bought. You may have other choices.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">*  Contingent Nonforfeiture</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">If the premium rate for your policy goes up in the future and you didn't buy a nonforfeiture option, you may be eligible for contingent nonforfeiture. Here's how to tell if you are eligible:</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">You will keep some long-term care insurance coverage, if:</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000011"><span class="s3f06f480-db49-472e-9a19-d942334ae448000012">·ð</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">Your premium after the increase exceeds your original premium by the percentage shown (or more) in the following table; and</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000011"><span class="s3f06f480-db49-472e-9a19-d942334ae448000012">·ð</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">You lapse (not pay more premiums) within 120 days of the increase.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">The amount of coverage (i.e., new lifetime maximum benefit amount) you will keep will equal the total amount of premiums you've paid since your policy was first issued. If you have already received benefits under the policy, so that the remaining maximum benefit amount is less than the total amount of premiums you've paid, the amount of coverage will be that remaining amount.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">Except for this reduced lifetime maximum benefit amount, all other policy benefits will remain at the levels attained at the time of the lapse and will not increase thereafter.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">Should you choose this Contingent Nonforfeiture option, your policy, with this reduced maximum benefit amount, will be considered "paid-up" with no further premiums due.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Example:</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000011"><span class="s3f06f480-db49-472e-9a19-d942334ae448000012">·ð</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">You bought the policy at age 65 and paid the $1,000 annual premium for 10 years, so you have paid a total of $10,000 in premium.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000011"><span class="s3f06f480-db49-472e-9a19-d942334ae448000012">·ð</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">In the eleventh year, you receive a rate increase of 50%, or $500 for a new annual premium of $1,500, and you decide to lapse the policy (not pay any more premiums).</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000011"><span class="s3f06f480-db49-472e-9a19-d942334ae448000012">·ð</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">Your "paid-up" policy benefits are $10,000 (provided you have at least $10,000 of benefits remaining under your policy).</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><div align="center"><table dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000013"><tr><td colspan="2" class="s3f06f480-db49-472e-9a19-d942334ae448000014"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Contingent Nonforfeiture</span></p></td></tr><tr><td colspan="2" class="s3f06f480-db49-472e-9a19-d942334ae448000015"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Cumulative Premium Increase over Initial Premium</span></p></td></tr><tr><td colspan="2" class="s3f06f480-db49-472e-9a19-d942334ae448000015"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">That Qualifies for Contingent Nonforfeiture</span></p></td></tr><tr><td colspan="2" class="s3f06f480-db49-472e-9a19-d942334ae448000015"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p></td></tr><tr><td colspan="2" class="s3f06f480-db49-472e-9a19-d942334ae448000016"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">(Percentage increase is cumulative from date of original issue. It does NOT represent a one-time increase.)</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Issue Age</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><h1 dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P1"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Percent Increase Over Initial Premium</span></h1></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">29 and under</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">200%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><a href="https://sdlegislature.gov/Statutes?Statute=30-34"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000003">30-34</span></a></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">190%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">35-39</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">170%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">40-44</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">150%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">45-49</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">130%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">50-54</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">110%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">55-59</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">90%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">60</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">70%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">61</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">66%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">62</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">62%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">63</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">58%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">64</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">54%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">65</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">50%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">66</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">48%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">67</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">46%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">68</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">44%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">69</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">42%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">70</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">40%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">71</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">38%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">72</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">36%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">73</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">34%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">74</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">32%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">75</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">30%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">76</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">28%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">77</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">26%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">78</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">24%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">79</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">22%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">80</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">20%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">81</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">19%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">82</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">18%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">83</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">17%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">84</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">16%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">85</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">15%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">86</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">14%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">87</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">13%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">88</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">12%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">89</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">11%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000017"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">90 and over</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000018"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">10%</span></p></td></tr></table></div><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">[The following contingent nonforfeiture disclosure need only be included for those limited pay policies to which §§ </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:21:58"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000003">20:06:21:58</span></a><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">(4)(d) and </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:21:58"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000003">20:06:21:58</span></a><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">(4)(f) are applicable.]</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">In addition to the contingent nonforfeiture benefits described above, the following reduced "paid-up" contingent nonforfeiture benefit is an option in all policies that have a fixed or limited premium payment period, even if you selected a nonforfeiture benefit when you bought your policy. If both the reduced "paid up" benefit AND the contingent benefit described above are triggered by the same rate increase, you can choose either of the two benefits.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">You are eligible for the reduced "paid-up" contingent nonforfeiture benefit if all three conditions shown below are met:</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000019"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">1.  The premium you are required to pay after the increase exceeds your original premium by the same percentage or more shown in the chart below:</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><div align="left"><table dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000020"><tr><td colspan="2" class="s3f06f480-db49-472e-9a19-d942334ae448000021"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Triggers for a Substantial Premium Increase</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000022"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000023"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Issue Age</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000024"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Percent Increase Over</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Initial Premium</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000022"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000024"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000022"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">Under 65</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000024"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">50%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000022"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">65-80</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000024"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">30%</span></p></td></tr><tr><td class="s3f06f480-db49-472e-9a19-d942334ae448000022"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">Over 80</span></p></td><td class="s3f06f480-db49-472e-9a19-d942334ae448000024"><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000002"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">10%</span></p></td></tr></table></div><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000019"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">2.  You stop paying your premiums within 120 days of when the premium increase took effect; AND</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000019"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000019"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">3.  The ratio of the number of months you already paid premiums is 40% or more than the number of months you originally agreed to pay.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000019"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">If you exercise this option your coverage will be converted to reduced "paid-up" status. That means there will be no additional premiums required. Your benefits will change in the following ways:</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000019"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">    a.  The total lifetime amount of benefits your reduced paid up policy will provide can be determined by multiplying 90% of the lifetime benefit amount at the time the policy becomes paid up by the ratio of the number of months you already paid premiums to the number of months you agreed to pay them.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000019"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448C0">    b.  The daily benefit amounts you purchased will also be adjusted by the same ratio.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">If you purchased lifetime benefits, only the daily benefit amounts you purchased will be adjusted by the applicable ratio.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000004">Example:</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000025"><span class="s3f06f480-db49-472e-9a19-d942334ae448000026">·ð</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">You bought the policy at age 65 with an annual premium payable for 10 years.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000025"><span class="s3f06f480-db49-472e-9a19-d942334ae448000026">·ð</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">In the sixth year, you receive a rate increase of 35% and you decide to stop paying premiums.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448000025"><span class="s3f06f480-db49-472e-9a19-d942334ae448000026">·ð</span><span class="s3f06f480-db49-472e-9a19-d942334ae448C0">Because you have already paid 50% of your total premium payments and that is more than the 40% ratio, your "paid-up" policy benefits are .45 (.90 times .50) times the total benefit amount that was in effect when you stopped paying your premiums. If you purchased inflation protection, it will not continue to apply to the benefits in the reduced "paid-up" policy.</span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0"><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p><p dir="ltr" class="s3f06f480-db49-472e-9a19-d942334ae448P0-000001"><span class="s3f06f480-db49-472e-9a19-d942334ae448C0-000005"><br />&#x200e;</span><span xml:space="preserve" class="s3f06f480-db49-472e-9a19-d942334ae448000000"> </span></p></div></body></html>