Basic Group Term Life Insurance and AD&D

Beneficial Life’s flexible Life and Accidental Death and Dismemberment (AD&D) plans offer security and peace of mind to your employees. Financial protection for employees and their dependents in the event of loss of life or a serious accident is the foundation of the exceptional benefits packages we design and service.

We help your employees in three ways:

• Flexible plan design and underwriting allow us to design a Life and AD&D program that your employees will value and appreciate.
• Our products are backed by a staff of professionals dedicated to the highest level of service and responsiveness.
• Our customer service coordinators assist with the utmost care and empathy to assure that beneficiaries are cared for in times of need.

Product Highlights

Group Term Life

This employer-provided program of flexible Group Term Life provides benefits in the event of an insured employee’s death.

Group Accidental Death and Dismemberment Insurance

This is an optional employer-provided addition to Group Term Life that provides benefits in the event of an insured employee’s accidental loss of life, limb or sight.

Group Dependent Life

Group Dependent Life provides benefits in the event of a covered dependent’s death.

Life Insurance Features and Options

Flexible Group Term Life and AD&D Schedules
Policy owners can choose from several basic benefit formulas:

• Flat dollar amounts
• Multiple of employee’s earnings
• Multiple classification schedules*
• Length of service*
• Combination of schedules*

* this schedule type will result in imputed income for amounts less than $50,000 under IRC§79

Dependent Life Provisions

An employer may elect to provide coverage for an employee’s spouse and dependent children or give the employees the option to purchase it themselves. Children are covered after 14 days following live birth. (Amounts greater than $2,000 will result in imputed income under IRC§79).

Layoff and Leave of Absence Provision

An employer may elect to continue benefits for employees who are temporarily laid off or granted a leave of absence (subject to policy maximums).

Waiver of Premium Provision

If an insured employee becomes totally disabled prior to a specified age and otherwise qualifies for the Waiver of Premium benefit, premium will be waived while the employee is totally disabled.

Accelerated Death Benefit

If an employee qualifies for Waiver of Premium and provides Beneficial Life with satisfactory proof of having a Qualifying Medical Condition (QMC), the employee may receive during his or her lifetime a portion of life insurance as an Accelerated Death Benefit. A QMC is a life expectancy of less than 12 months, as certified in writing by an attending physician. The employee must have been continuously insured under a Basic Term Life insurance policy for at least 12 consecutive months and have at least $10,000 of insurance in effect to be eligible. The standard Accelerated Benefit is 50%of the life insurance amount up to $250,000 from all sources of group insurance.

Life Insurance Conversion Privilege

Group Life insurance may be covered to a permanent life insurance policy without evidence of insurability, if applied for within 31 days of termination of employment.

AD&D Features and Options

Seat Belt Benefit. This provides a benefit payable for loss of life that occurs in an automobile accident if the insured is properly wearing a seat belt. The driver must have a current, valid driver’s license.

Air Bag Benefit. This provides a benefit payable for loss of life that occurs in an automobile accident for which a Seat Belt Benefit is payable, if the automobile is equipped with a properly maintained air bag system. The insured must be seated in the driver’s or front passenger seat, and the driver must have a current, valid driver’s license.

Career Adjustment Benefit. This benefit provides for the tuition expenses for training incurred by the insured’s spouse at an accredited institution of higher education or trades training program. The insured’s spouse must enroll in the training within 12 months after the date of the insured’s death (does not include room and board).

Child Care Benefit. This benefit provides for the total childcare expenses incurred by the insured’s spouse within 12 months of the insured’s death. This benefit will pay the insured’s spouse for child care provided by a licensed daycare provider, who is not a family member, for dependents under the age of 18. The childcare expenses must occur because the spouse must work or obtain training for work to increase earnings.

Common Disaster Benefit. This provides a benefit payable if the insured and his or her spouse die as a result of the same accident.

Higher Education Benefit. This benefit provides for the tuition expenses incurred annually (per child) by dependent children who are enrolled within 12 months after the insured’s death at an accredited institution of higher education or trades training program (does not include room and board).

Occupational Assault Benefit. This provides a benefit for a loss that an insured sustains while actively at work. The loss must be the result of physical violence against the insured that is punishable by law as evidenced by a police report.

Public Transportation Benefit. This provides a benefit payable for loss of life that occurs while the insured is riding as a fare-paying passenger on public transportation.

Voluntary Group Term Life Insurance

Why should an employer offer a Voluntary Life Plan?

• Attract and retain top employees. Labor market competition for exceptional talent requires an employer to design the best benefits program possible to retain top employees. Financial security provided through Voluntary Group Term Life is a critical, integral component of an employer’s benefits program.
• Low cost to employees. Low group rates are competitive and affordable. Life insurance consultants recommend that the primary breadwinner carry life insurance in excess of ten times his or her annual salary. A Voluntary Group Term Life plan is an inexpensive way for employees to purchase high-dollar coverage got just pennies a day. They receive adequate life insurance to protect themselves, their loved ones, and their assets in the event of an untimely loss of life.
• No cost to employer. Employers can offer their employees high-dollar Group Term coverage at low group rates. Voluntary Group Term Life is paid for entirely by the employee, with no cost to the employer.
• Flexible plan design. DBS can design a Voluntary Life plan to meet the needs of most employer groups. Minimum participation requirements are low, and employees can choose the amount of coverage they need. Simplified underwriting and limited guarantee issue amounts create a contemporary and inexpensive protection plan for employees. Voluntary coverage is available to employees, their spouses, and, in limited amounts, to dependent children.

Voluntary Life Is Offered in Two Ways

•  Base+ Voluntary Life. Add a Voluntary Life plan to an employer-provided Basic Group Term Life program and receive discounted premium rates, when the Basic and Voluntary coverage are both underwritten by the same carrier. Employees have the option to purchase additional coverage for themselves, their spouses, and/or their dependent children.
• Stand-alone Voluntary Life. This plan is offered when no underlying employer-paid basic plan exists. Simply offer employees the option to purchase Voluntary Life coverage for themselves, their spouses, and/or their dependent children.

Rates and Underwriting

• When sold in conjunction with an employer-paid basic plan, premiums are discounted from standard rates.
• Multi-year rate guarantees are available.
• Competitive age-graded premium rates are available in five-year intervals.
• Rates are available based on tobacco-free or tobacco use, or rates may be blended.
• Rates differ based on underwritten or guaranteed issue coverage. Rate basis must be the same for the entire group.
• Underwritten coverage requires a one-page health form to be completed by all prospective insureds.
• The guaranteed issue program is based on group size and minimum participation levels. Insurance amounts in excess of guaranteed issue level are subject to group underwriting rules.
• Individual Employee Eligibility
• Coverage is available only to active, at-work employees working at least 20 hours a week.
• An employee must apply for Voluntary Group Term Life in order to apply for coverage on his or her spouse and/or dependent children.
• All coverage is effective on the first day of the month following underwriting approval of the employee’s application.

Features and Options

Voluntary Life Amounts

•  Employee-elected amounts are generally available in $10,000 increments, from $20,000 to $500,000
• Voluntary insurance is available to spouses of insured employees in $5,000 increments, up to 50% of the employee’s amount.
• Eligible dependent children of employees covered by Voluntary Group Term Life may be insured for either $5,000 or $10,000. One low premium covers all eligible dependent children.

Waiver of Premium

Basic Voluntary Life plans are available with or without Waiver of Premium for total disability. If an employee becomes disabled prior to a specified age, life insurance premiums will be waived for the employee, spouse, and dependent children for as long as the employee remains totally disabled.

Accelerated Death Benefit

If an employee qualifies for Waiver of Premium and gives the carrier satisfactory proof of having a Qualifying Medical Condition (QMC), the employee may receive during his or her lifetime a portion of life insurance as an Accelerated Death Benefit. A QMC is a life expectancy of less than 12 months, as certified in writing by an attending physician. The employee must have been continuously insured under the Voluntary policy for at least 12 consecutive months and have at least $10,000 of insurance in effect to be eligible. The standard Accelerated Death Benefit is 50% of the life insurance amount up to $100,000 from all sources of group insurance. (The Accelerated Death Benefit percentage and maximum may vary by state.)

Age Discrimination and Employment Act (ADEA)
Coverage Reduction Schedule

Flexible reduction schedules allow protection to continue beyond age 65 for active employees. Subject to ADEA, a reduction schedule can be designed to meet the needs of the group.

Conversion Privilege

A covered member may convert his or her Voluntary Group coverage to an individual life insurance policy if the insurance is reduced due to termination or reduction of insurance, other than for failure to make premium contributions or for payment of an Accelerated Death Benefit.