SETTLEMENT OPTIONS The Insured may elect a different way in which payment of the Amount of Insurance can be made. He/she must provide a written request to us, for our approval, at our Administrative Office. If the option covers less than the full amount due, we must be advised of what part is to be under an option. Amounts under $2,000 or option payments of less than $20.00 each are not eligible. If no instructions for a settlement option are in effect at the death of the Insured, the beneficiary may make the election, with our consent. OPTION A – FIXED TIME PAYMENT OPTION Equal monthly payments will be made for any period chosen, up to thirty (30) years. The amount of each payment depends on the amount applied, the period selected and the payment rates we are using when the first payment is due. The rate of any monthly payment will not be less than shown in the table below. We reserve the right to change it. This change will apply only to requests for settlement elected after this change. Option A Table Minimum Monthly Payment Rates for each $1,000 Applied Monthly Monthly Monthly Monthly Monthly Years Payment Years Payment Years Payment Years Payment Years Payment 1 $83.71 7 $12.32 13 $6.83 19 $4.81 25 $3.76 2 42.07 8 10.83 14 6.37 20 4.59 26 3.64 3 28.18 9 9.68 15 5.98 21 4.40 27 3.52 4 21.24 10 8.75 16 5.63 22 4.22 28 3.41 5 17.08 11 7.99 17 5.33 23 4.05 29 3.31 6 14.30 12 7.36 18 5.05 24 3.90 30 3.21 OPTION B – FIXED AMOUNT PAYMENT OPTION Each payment will be for an agreed fixed amount. The amount of each payment may not be less than $10.00 for each $1,000 applied. Interest will be credited each month on the unpaid balance and added to it. This interest will be at a rate set by us, but not less than the equivalent of 1% per year. Payments continue until the amount we hold runs out. The last payment will be for the balance only. OPTION C – INTEREST PAYMENT OPTION We will hold any amount applied under this section. Interest on the unpaid balance will be paid each month at a rate set by us. This rate will not be less than the equivalent of 1% per year. If a beneficiary dies while receiving payments under one of these options and there is no contingent beneficiary, the balance will be paid in one sum to the proper representative of the beneficiary's estate, unless otherwise agreed to in the instructions for settlement. Requests for settlement options other than the three (3) set out above may be made. A mutual agreement must be reached between the individual entitled to elect and us. LRS-6422-10 Ed. 04/16 Page 9.0