BENEFICIARY AND FACILITY OF PAYMENT BENEFICIARY: The beneficiary to receive benefits at your death will be as named in writing by you. This beneficiary designation must be on file with the Policyholder or the Plan Administrator and will be effective on the date you sign it. Any payment made by us before receiving the designation shall fully discharge us to the extent of that payment. If you name more than one beneficiary to share the benefit, you must state the percentage of the benefit that is to be paid to each beneficiary. Otherwise, they will share the benefit equally. The beneficiary's consent is not needed if you wish to change the designation. His/her consent is also not needed to make any changes in the Policy. If the beneficiary dies at the same time that you do, or within 15 days after your death but before we receive written proof of your death, payment will be made as if you survived the beneficiary, unless noted otherwise. If you have not named a beneficiary, or the named beneficiary is not surviving at your death, any benefits due shall be paid to the first of the following classes to survive you: (1) your legal spouse; (2) your surviving children (including legally adopted children), in equal shares; (3) your surviving parents, in equal shares; (4) your surviving siblings, in equal shares; or, if none of the above, (5) your estate. Benefits payable at the death of an Insured Dependent will be paid to you unless another individual has been designated as beneficiary. We will not be liable for any payment we have made in good faith. FACILITY OF PAYMENT: If a beneficiary, in our opinion, cannot give a valid release (and no guardian has been appointed), we may pay the benefit to the person who has custody or is the main support of the beneficiary. Payment to a minor shall not exceed $1,000. If you have not named a beneficiary, or the named beneficiary is not surviving at your death, we may pay up to $2,500 of the benefit to the person(s) who, in our opinion, have incurred expenses in connection with your last illness, death or burial. The balance of the benefit, if any, will be held by us, until an individual or representative: (1) is validly named; or (2) is appointed to receive the proceeds; and (3) can give valid release to us. With respect to the Facility of Payment provision, the benefit will be held with interest at a rate set by us. We will not be held liable for any payment we have made in good faith. LRS-9538-10-0118 Page 10.0