Optional AD&D Insurance Summary
Optional AD&D insurance pays a benefit to you for certain losses that result from a covered accident, or to your beneficiary if a covered accident results in your death. You may buy optional AD&D insurance at competitive group rates for yourself and your dependent family members.
Optional AD&D benefits will be paid if all of the following conditions are met:
- You are covered for optional AD&D insurance on the date of the accident,
- The loss occurs within 365 days of the date of the accident, and
- The cause of the loss is not excluded.
For purposes of the plan, "accident" means a sudden, violent, unexpected, and external event.
| EMPLOYEE-PAID OPTIONAL AD&D INSURANCE |
| Employee Optional AD&D Insurance |
$25,000 increments, up to $250,000 |
| Dependent Optional AD&D Insurance |
Percentage of optional employee AD&D coverage, depending on the family members at the time of a covered accident |
Beginning on your 70th birthday, if you are still actively employed at the Company, your optional AD&D insurance will be reduced as follows:
- From your 70th birthday to age 75, reduced to 65% of your pre-age 70 amount.
- From your 75th birthday and after, reduced to 50% of your pre-age 70 amount.
For example, if your pre-age 70 coverage equals $100,000, that amount will be $65,000 at age 70 through age 74 and $50,000 at age 75 and after. Note that the reduction occurs on January 1 following your 70th or 75th birthday, respectively.
| EMPLOYEE-PAID OPTIONAL AD&D INSURANCE |
| Employee Optional AD&D Insurance |
$25,000 increments, up to $250,000 maximum |
| Dependent Optional AD&D Insurance |
Percentage of optional employee AD&D coverage, depending on the family make-up at the time of a covered accident |
| |
For non-field sales personnel, "annual base salary" refers to the annual base salary in effect at the time of loss and does not include commissions, overtime, bonuses, or any other special compensation. |
Beginning on your 70th birthday, if you are still actively employed at the Company, your optional AD&D insurance will be reduced as follows:
- From your 70th birthday to age 75, reduced to 65% of your pre-age 70 amount.
- From your 75th birthday and after, reduced to 50% of your pre-age 70 amount.
For example, if your pre-age 70 coverage equals $100,000, that amount will be $65,000 at age 70 through age 74 and $50,000 at age 75 and after. Note that the reduction occurs on January 1 following your 70th or 75th birthday, respectively.
If you elect family coverage, all dependents in your family must be covered. Your spouse/domestic partner and children will be covered for a portion of your insurance, as follows:
| YOUR FAMILY MEMBERS AT THE TIME OF LOSS |
SPOUSE/DOMESTIC PARTNER |
EACH CHILD |
| Spouse/domestic partner only |
60% |
0% |
| Spouse/domestic partner & children |
50% |
10% |
| Children only |
0% |
20% |
For example, if you elect family coverage of $100,000, have only a spouse/domestic partner, and your spouse/domestic partner accidentally dies from a covered accident, you would receive $60,000.
Please note that your spouse/domestic partner and children as of the date of the covered accident are eligible to receive benefits only if you have elected family coverage.
The chart below summarizes how the optional AD&D plan pays benefits for employees. Only one amount—the largest to which you are entitled—will be paid for all losses resulting from one accident. If a covered dependent suffers any of the losses listed below, the dependent coverage amount will be based on a percentage of your benefit as described above. As a reminder, optional AD&D benefits are paid in addition to any basic and supplemental AD&D benefits you may be eligible to receive.
| FOR THE LOSS OF... |
THE OPTIONAL AD&D PLAN PAYS... |
| Your life |
100% of your coverage amount |
| Both hands, both feet or sight in both eyes |
100% of your coverage amount |
| One hand and one foot |
100% of your coverage amount |
| Speech and hearing in both ears |
100% of your coverage amount |
| One hand or foot, and sight in one eye |
100% of your coverage amount |
| One hand or one foot or sight in one eye |
50% of your coverage amount |
| Speech or hearing in both ears |
25% of your coverage amount |
| A thumb and index finger on the same hand |
25% of your coverage amount |
| Paralysis of one limb |
25% |
| Paralysis of three limbs |
75% |
| Quadriplegia (total paralysis of both upper and lower limbs) |
100% of your coverage amount |
| Paraplegia (total paralysis of both lower limbs) |
50% of your coverage amount |
| Hemiplegia (total paralysis of both upper and lower limbs on one side of the body) |
50% of your coverage amount |
| Loss of hands or feet means loss by being permanently, physically severed at or above the wrist or ankle; loss of sight means total and permanent loss of sight; loss of speech and hearing means total and permanent loss of speech and hearing; loss of thumb and index finger means loss by being permanently, physically, entirely severed. Paralysis means the result of a spinal cord injury which is due to an accident, not including stroke, and is determined to be permanent, complete, and irreversible by a medical authority. |
If you sustain more than one loss as the result of one covered accident, the plan will pay only one amount—the largest to which you are entitled, not to exceed a total benefit of 100% of your coverage amount. For example, if you lose sight in both eyes, and the thumb and index finger of one hand, the plan will pay a total benefit of 100% of your coverage amount—not 100% for the first loss and 25% for the second loss.
Safe Driver Benefit
If you die as the result of a covered automobile accident while you are wearing a properly fastened safety belt, the plan will pay an additional 20% of your optional AD&D coverage amount, not to exceed a maximum of $20,000.
"Automobile" means any self-propelled private passenger vehicle which has four or more tires and which is not being used for commercial purposes. "Safety belt" means a passenger restraint system properly installed in the vehicle in which you were riding.
The plan will not pay the safe driver benefit if the loss of life was caused by any use of intoxicating liquors, marijuana, narcotic drugs, depressants or similar substances, either by you or by the driver of the automobile in which you were riding.
Safe driver benefits are paid to your beneficiary.
Exposure And Disappearance Benefit
The plan will pay an exposure benefit if any of the following are caused by exposure to the elements as a result of a covered accident:
- Loss of the use of hands, feet, or thumb and index finger of the same hand
- Paralysis
The exposure benefit will be a percentage of the optional AD&D benefit based on the table of covered losses above. The benefit will be paid to you if living, or to your beneficiary if not.
The plan will pay a disappearance benefit if all of the following conditions are met:
- You are in a conveyance, including but not limited to an automobile, airplane, ship, or train that disappears, sinks, or wrecks; and
- You disappear and your body is not found and the disappearance is the result of a covered accident; and
- A reasonable period of time—but no more than one year—has elapsed since the accident; and
- The insurance company has reviewed all evidence and believes you are no longer living.
The amount of the disappearance benefit is 100% of the optional AD&D benefit and it will be paid to your beneficiary. If you are found to be living after a benefit has been paid, the person or persons to whom it was paid must immediately refund the death benefit to the insurance company.