Basic Life & Supplemental Term Life Insurance
Company Paid Basic Life Insurance with AD&D Coverage If you enroll in a medical plan, all eligible associates will be automatically enrolled in a Unum Basic Life Insurance policy, with Accident Death and Dismemberment (AD&D). The face value is $100,000. Reductions of benefit face amount begin at age 65. AD&D insurance can pay a benefit if you survive an accident but have certain serious injuries. It can also pay an additional amount if you die from a covered accident. This benefit includes an Accelerated Benefit which would allow you, with a terminal condition with less then 12 months to live, to request a percentage of the face value to be paid out to, understanding that the payout would be taxable and would reduce the remaining face value amount by the same amount. Supplemental Term Life Insurance The company also makes available to you Voluntary Life Insurance through Unum. • For You: Increments of $10,000 up to a maximum of 5X annual earnings or $500,000, whichever is less • For your Spouse / Domestic Partner: Increments of $5,000 up to a $250,000 maximum benefit. It cannot exceed 50% of your Supplemental Life coverage amount • For your child(ren): Children ages 15 days to 26. $5,000 or $10,000 maximum benefit. All children are covered with only one rate, regardless of the number of children Note: In order to have coverage on your Spouse/Domestic partner or child(ren), you must elect coverage on yourself. Accidental Death and Dismemberment (AD&D) insurance provides specified benefits for a covered accidental bodily injury that directly causes dismemberment (e.g., the loss of a hand, foot, or eye). In the event that death occurs from a covered accident, both the life and the AD&D benefit would be payable. This policy provides a “Living Benefit” option to withdraw a percentage of your life insurance coverage when diagnosed as terminally ill (as defined in the policy), and may be taxable. The death benefit will be reduced by the amount withdrawn. Spouse rates are based on your age. You will remain at that rate for the plan year. Rates will change annually upon plan anniversary when you enter the next age bracket.
Guaranteed Issue Amounts “Guaranteed Issue” means that coverage up to the Guarantee Issue amounts are available when first eligible for the plan
without medical underwriting questions. • Newly Eligible Associate: $150,000 • Spouse / Domestic Partner: $30,000 • Child(ren): $10,000
If you wish to become insured for an amount of Supplemental Life in excess of the Guaranteed Issue amount, the excess will be subject to Unum’s medical underwriting approval and you will be required to submit a health questionnaire to Unum, also known as an Evidence of Insurability (EOI) form. All late applications are also subject to medical underwriting approval. Assigning Your Beneficiaries During enrollment you must provide the name(s) and other information for at least one beneficiary for your policy. Beneficiaries can be changed as often as you need. A beneficiary is someone designated in your life insurance policy to receive all or part of your death benefit. There can be more than one beneficiary – and in practice, there often is. A beneficiary doesn’t have to be a person – it can also be an entity such as a church, charity, or family trust. Important Notes: • Minor children: If the named beneficiary is a minor, the benefit is put ‘On Hold’ for Age of Majority (age is 18) or until Guardianship/Conservatorship Paperwork is received. Benefits may be paid if the benefit is under $10,000. • Spouse: There is a community property sign off form. It is not mandatory that this form be used. Typically this form is used to have the spouse waive their rights to the policy amount. General practice is that the carrier will pay the person that has been named as the beneficiary.
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