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Plan features

Extended life insurance benefits
(waiver of premium)

If you are younger than 60 and become Totally Disabled (as certified by an Approved Practitioner) for six continuous months or more and cannot be self-sustaining in any occupation, your Group Term Life Insurance may be continued without any payment of premium. You must give written proof of your Total Disability to us within 6 to 18 months after the date you became Totally Disabled. From then on until you are age 70, you must provide proof of continuing disability at least once a year. After you reach age 70 and you have been continuously disabled and are receiving Extended Life Insurance Benefits, no additional proof of continuing disability is required. However, we may request that you complete a questionnaire each year to make sure that information in our files are accurate and up-to-date.  For more information about this benefit, please see page 34 of the Active Employees Benefit Book.

Accelerated life benefit

You or your court appointed legal representative may request payment in one lump sum to you of up to 80% of your total Group Term Life Insurance amount which is the sum of your Basic Group Term Life Insurance (which you have if you have health coverage through the Group Benefits Program) and your Optional Group Term Life Insurance amounts. You must be diagnosed with a Terminal Condition and have a life expectancy of 12 months or less.

We will review your request and evaluate whether the requirements of this benefit are met. The minimum payment will be $5,000 and will be made by us to you or your legal representative. The amount of the payment will be deducted from your total Group Term Life Insurance amount. However, you will continue to pay any premiums required for the total Group Term Life Insurance coverage as if the Accelerated Life Benefit payment had not been made. The amount of total Group Term Life Insurance that will be paid to your beneficiary when you die will be reduced by this Accelerated Life Benefit Payment.

Note: If you are diagnosed with a Terminal Condition with a life expectancy of 12 months or less, you may elect to receive benefits under the Accelerated Life Benefit or Life Settlement Contract Option, but not both. Please review your situation carefully before making your selection.

This provision also applies to any dependents in which you have elected coverage.

DISCLOSURE: The Accelerated Life Benefit offered under your Group Term Life Insurance coverage is intended to qualify for favorable tax treatment under the Internal Revenue Code of 1986. If the Accelerated Life Benefit qualifies for such favorable tax treatment, the benefits will be excludable from your income and not subject to federal taxation. Tax laws relating to the Accelerated Life Benefit are complex. You are advised to consult a qualified tax advisor about the circumstances under which you could receive the Accelerated Life Benefit excludable from income under federal law. Receipt of the Accelerated Life Benefit payment may affect your or your Dependents’ eligibility for public assistance such as medical assistance (Medicaid), Aid to Families with Dependent Children (AFDC), Supplementary Social Security Income (SSI), and drug assistance programs. You are advised to consult with a qualified tax advisor and with social service agencies concerning how receipt of such payment will affect your or your Dependents’ eligibility for public assistance.

For more information please see the Active Employees Benefit Book.

Conversion privilege

Conversion for you

You may convert your Group Term Life Insurance (both Basic and Optional amounts) to an individual policy of life insurance if your employment ends for any reason or if you are no longer eligible for these coverages. Life Evidence of Insurability is not required if you apply for the individual life insurance policy and pay the first premium within 31 days after your group coverage ends.  If you convert to an individual life insurance policy, the premium will cost more than for your group term life insurance premium. Note: The individual life insurance policy does not include the Extended Life Insurance Benefit, AD&D, or the Accelerated Life Benefit and is not term insurance.

If the Group Policy is discontinued, you may convert to an individual life insurance policy (as described above) if your employment ends on the date the Group Policy ends, provided:

  • you were insured under the Group Policy when the Group Policy ends;
  • you were continuously insured under the Group Policy for at least five years before the Group Policy ends; and
  • your insurance under the Group Policy ends because the Group Policy has ended. The individual life insurance policy will not be for an amount of insurance greater than the smaller of the following amounts:
    • the amount of your insurance under the Group Policy, minus the amount of any life insurance you are eligible for under any group policy issued or reinstated by us or by any other life insurance company within 31 days after the termination of the Group Policy; or
    • $2,000.

If you die within the 31-day period allowed for conversion, a benefit may be paid to your beneficiary. The amount paid will be the amount your beneficiary would have received if you had applied for conversion. This benefit may be paid, regardless of whether or not you applied for it.

Conversion for your covered spouse

Your covered spouse may convert his or her Dependent Group Term Life Insurance amount to an individual life insurance policy if:

  • your employment ends for any reason;
  • Your spouse is no longer eligible for Dependent insurance under these coverages; or
  • you die.

Your covered spouse is not required to provide Life Evidence of Insurability if your spouse applies for the individual policy and pays the first premium within 31 days after group coverage ends. If your covered spouse converts to an individual life insurance policy, the premium will cost more than for your covered spouse’s group term life insurance premium. Note: The individual life insurance policy will not include AD&D insurance and is not term insurance.

If the Group Policy is discontinued or is changed to end coverage for Dependents, your covered spouse will be able to convert his or her Dependent Group Term Life Insurance to an individual life insurance policy (as described above), provided:

  • your covered spouse was insured under the Group Policy when the Group Policy ends;
  • your covered spouse was continuously insured under the Group Policy for at least five years
  • before the Group Policy ends; and
  • your covered spouse’s insurance under the Group Policy ends because the Group Policy has ended.

The individual life insurance policy will not be for an amount of insurance greater than the smaller of the following amounts:

  • the amount of your covered spouse’s insurance under the Group Policy, minus the amount of any life insurance your covered spouse is eligible for under any group policy issued or reinstated by us or by any other life insurance company within 31 days after the termination of the Group Policy; or
  • $2,000.

If your covered spouse dies within the 31-day period allowed for conversion, a benefit may be paid to your covered spouse’s beneficiary. The amount paid will be the amount your covered spouse’s beneficiary would have received if your covered spouse had applied for conversion. This benefit may be paid, regardless of whether or not you or your covered spouse applied for conversion.

For more information about this benefit, please see page 33 of the Active Employees Benefit Book.