Life and AD&D Insurance
Life insurance is an important part of your financial security, especially if others depend on you for support. Even if you are single, yourbeneficiary can use your Life insurance to pay off your debts, such as credit cards, mortgages, and other final expenses.
Basic Life and AD&D
Basic Life insurance and Accidental Death and Dismemberment (AD&D) coverage are provided at no out-of-pocket cost to you; you do not need to enroll in any other health and protection program. Employees are automatically covered up to $XXX and have the option to purchase Dependent Life insurance for a spouse and dependent children through Sample Provider Life Insurance Company.
Accidental Death and Dismemberment coverage helps protect you and your family from the unforeseen financial hardship of a serious accident that causes death or dismemberment. AD&D insurance provides you specified benefits for a covered accidental bodily injury that directly causes dismemberment (i.e., the loss of a hand, foot or eye). In the event that death occurs from an accident, 100% of the AD&D benefit would be payable to your beneficiary(ies).
Designating a Beneficiary
Designating a beneficiary ensures how your Life and AD&D insurance benefits are paid in case of your death. You can name more than one beneficiary, and you can change beneficiaries at any time. If you name more than one beneficiary, identify the share for each. Be sure all names are correct on the Beneficiary Designation form and that your form is on file with Human Resources.
Voluntary Life and AD&D
In addition to Basic Life and AD&D, eligible employees may purchase additional Life and AD&D insurance at favorable group rates. If you decline Voluntary Life insurance when first eligible or if you elect coverage and wish to increase your benefit amount at a later date, evidence of insurability may be required before coverage is approved. You pay for this coverage with after-tax dollars.
You must elect Voluntary coverage for yourself in order to elect coverage for your spouse/registered domestic partner or children. If you leave Sample Company, you may take the insurance with you by paying premiums directly to the insurance company. Your benefit amounts decrease to 65% at age 70 and 50% at age 75.
| Coverage for: | Coverage available: |
|---|---|
| Employee | Increments of $10,000 up to five times your salary or $500,000. |
| Spouse | Increments of $10,000 up to $250,000 – not to exceed 100% of Employee coverage. Available up to age 70. |
| Child(ren) | Increments of $2,000 to a maximum of $25,000. $250 for children 14 days to 6 months. |
In order to cover dependents, Employee must elect coverage for self.
Guaranteed Issue & Evidence of Insurability
When you are first eligible (at hire) for Voluntary Life and AD&D, you may purchase up to 5x base annual salary up to guaranteed issue (GI) without evidence of insurability (EOI). If the amount requested is more than GI, you will need to provide EOI before the amount over GI becomes effective. If you enroll your spouse/registered domestic partner when first eligible, you may buy up to GI without providing EOI. Your spouse/registered domestic partner will need to provide EOI to be eligible for coverage over GI, or if coverage is requested at a later date.