Manner of Payment

Life insurance benefits will be paid in one lump sum. Interest will be paid at the Company's current rate, on proceeds that are not paid by the Company within 30 days from the date of death. Interest is paid, if state-mandated, from date of death to date of payment.

Beneficiary

"Beneficiary" means the person(s) named by the insured individual to receive proceeds of Life Insurance upon his death.

An insured individual may name or change his beneficiary at any time by filing a beneficiary card, which is available from the Administrative Office.

If any payment has been made before any change in beneficiary is received, the Company does not have to pay this amount again.

If more than one beneficiary is named, they shall share equally unless otherwise stated.

When a beneficiary dies before the insured individual, payment shall be made to any remaining beneficiary in the same ratio that proceeds were made payable among other beneficiaries unless otherwise stated.

If no beneficiary is named or no beneficiary survives the insured individual, proceeds shall be payable in the following order to:

1. The spouse, if living;
2. The surviving children equally;
3. Mother and father equally or to the surviving parent if both are not alive;
4. The executors or administrators.

Any beneficiary last named in a personal policy (or application therefore) issued under the Conversion Privilege shall be entitled to the entire proceeds of Life Insurance under the policy. The naming of such beneficiary is a change of beneficiary under the policy.

Conversion Privilege

1. If an insured individual's Life Insurance or any portion of it terminates because of:
   1. Termination of employment for any reason;
   2. Termination of membership in an eligible class;
   3. The insured individual ceases to qualify for the death benefit under the Total Disability Death Benefit provision, the insured individual shall have the right to covert such insurance to an individual policy.
   
   Such converted policy will be on a form then issued by the Company (other than term insurance) and shall be without disability or other supplementary benefits.
   
2. The converted policy will be issued if:
   1. Written application is made within 31 days after termination or 31 days after the insured individual ceases to be eligible for all or part of the death benefit under the Total Disability Death Benefit provision;
   2. The initial premium based on the then attained age is paid within the period referred to in A) above;
   3. The amount of the converted policy does not exceed the amount of insurance so terminated or the amount of death benefit for which the insured individual ceases to be eligible (subject to reduction by the amount of any in-force individual policy previously issued under the conversion privilege at the time he became totally disabled).
3. If the insured individual's insurance ends because the policy ends or is amended, such insured individual may convert as described above, but subject to both of the following:
   1. The insured individual must be insured under the policy for at least 5 years. (This 5 years includes time insured under any prior policy, issued by the Company, which the policy replaced);
   2. The amount of the converted policy shall not be more than the lesser of:
      1. $2,000;
      2. the amount of insurance under the policy, less any amount of group life insurance on the life of the insured individual which is issued or reinstated within 31 days after his insurance ends.

      Life Insurance benefits are not maintained by making a COBRA self-payment.

Conversion Period Death Benefit

If an insured individual dies during the 31 days during which he has the right to convert, the maximum amount which he could convert will be payable as a death benefit to such insured individual's beneficiary for Life Insurance. This benefit will be payable whether or not the insured individual has applied for such conversion.

Total Disability Death Benefit

If while insured for this Life Insurance, the insured individual becomes totally disabled (as defined below) before age 60, a death benefit shall be payable, subject to all the following being met:

1. His life insurance ends;
2. He remains totally disabled until death;
3. Due proof in writing of continued total disability for at least 9 months is received at the Company home office as follows:
   1. The first proof must be received within 12 months after the insured individual stopped active work on a full-time basis. If the insured individual dies during such 12-month period, proof must be received within 12 months after date of death;
   2. Further proof must be received each year thereafter when requested. The Company will not ask for proof more than once a year. If the insured individual dies, proof must be given within 12 months after date of death;

4. The insured individual must have a medical exam by a doctor of the Company's choice whenever required by the Company;
5. A claim must not be filed under the Conversion Period Death Benefit provision;
6. Any converted policy issued at the time the insured individual became disabled must be returned to the Company. The Company will refund premiums paid less dividends and debt owed thereon.

Important:  All of the requirements as to proof of disability must be met. No facts or events shall excuse failure to comply. Upon receipt of written due proof of death by the Company at its home office after all of the above requirements are met, a death benefit shall be payable to the beneficiary.

The amount of the death benefit shall be the amount of Life Insurance in effect on the date insurance ended, subject to any provision of the policy providing for reduction (or termination) by reason of age or retirement. Under this benefit, any such reduction shall be effective on the date of retirement or on the date the applicable age is attained.

"Total Disability" or "Totally Disabled" means that because of a sickness or an injury:

1. you can not do your job; and
2. you can not do any other job for which you are fit by your education, your training, or your experience.