EXCHANGE OPTION RIDER
WE WILL EXCHANGE this Policy for two individual Policies on the life of each
Insured, subject to the conditions stated in this rider.
EXCHANGE OPTIONS. This option may be exercised only if one of the
following occurs:
1) A final divorce decree on the Insureds' marriage is issued and in
effect for 6 months. The Insureds must have been married to each other
on the Policy Issue Date.
2) A significant change to the Federal Tax Law of the Internal Revenue
Code that results in (1) or (2) below:
a) The repeal of the unlimited marital deduction provision; or
b) The tax rate for the maximum federal estate tax bracket is reduced to
25% or less.
DATE OF EXCHANGE. The date of exchange is the date the coverage under the
individual Policies become effective. No evidence of insurability will be
required at time of the exchange.
CONDITIONS FOR EXCHANGE. The option to exchange this Policy will not be allowed
unless the following conditions are met:
1) This Policy and this rider must be in force on the day prior to the
date of exchange;
2) The Owner of each new Policy must have an insurable interest in the
Insured's life;
3) This Policy will terminate on the date of exchange;
4) Both Insureds under this Policy must be living on the date of
exchange;
5) Evidence and written notice satisfactory to Us must be received in Our
Service Center on or within 6 months after an Exchange Option occurs;
6) In the event of divorce, the Insureds cannot be re-married to each
other on the date of exchange and a copy of the final decree must be
received at Our Service Center;
7) Release of any lien against or assignment of the Policy, or written
approval by any lien-holder or assignee in a form satisfactory to Us
and any other such documentation We may require;
8) The original Policy is returned to Us; and
9) The first premium for each new individual Policy must be paid on or
before the Exchange Date.
NEW POLICIES. Each new Policy will:
1) Be a single life flexible premium life insurance Policy then being
issued by Us;
2) Be issued at the Insured's attained age as of the date of exchange;
3) Be issued at the Insured's same rate classification and substandard
rating as the most recent increase to the Specified Amount, or the
same as the original Policy was issued at if no increases have been
made;
4) Be considered a newly issued Policy with new minimum premium payment
and surrender period requirements;
5) Have a Specified Amount equal to one half of the Specified Amount of
the original Policy at the time of exchange;
6) Have the same death benefit option as the original Policy;
7) Be credited one half of the Accumulation Value and loan value of the
original Policy as of the day prior to the date of exchange;
8) Become effective on the date of exchange and will not provide any
insurance until such time;
9) Each new Policy will be subject to one half the amount of any
outstanding loans on the original Policy. If the outstanding loans on
a new Policy exceed the amount available for a loan under that Policy,
the outstanding loans must be reduced to equal the available loan
value on the new Policy. Any excess must be paid in cash to us;
10) Each new Policy will be subject to any existing assignment of the
original Policy; and
11) Riders can be added to the new Policy, if available, with evidence of
insurability.
CONSIDERATION. The consideration for issuing this rider is the application. This
rider is made a part of the Policy to which it is attached. The applicable
Policy provisions apply to this rider, except as otherwise stated.
EFFECTIVE DATE - The effective date of this rider will be the effective date of
the Policy unless otherwise stated on the Policy Schedule.
TERMINATION. This rider will terminate on the earliest of the following:
1) the date of the first death of the Insureds;
2) the first Monthly Anniversary Day that falls on or next follows Your
written request to Our Service Center to cancel this rider;
3) the Date of Exchange under this rider;
4) the Monthly Anniversary following the older Insureds' 80th birthday;
or
5) the date the Policy terminates for any reason.
BUSINESS MEN'S ASSURANCE COMPANY OF AMERICA
[Signature]
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Secretary
