How the Plan Works
The following information describes beneficiary designations, assigning your insurance, and how to file a claim.
In order for the plans to pay benefits to the person(s) to whom you intended, it is essential that you choose a beneficiary or beneficiaries for your insurance and keep the information updated. You can name one or more beneficiaries and your beneficiary can be anyone. Your beneficiary designation is a legally binding document.
You can also indicate whether each beneficiary is an irrevocable beneficiary. This means you cannot change the beneficiary without his or her consent.
Provided you have not assigned ownership of your life insurance, you can change your beneficiary designation at any time. Remember that any changes affecting an irrevocable beneficiary requires the written consent of that beneficiary. As your personal life changes (e.g., marriage, divorce, birth, adoption, death of a beneficiary), be sure to review your beneficiary designation and change it, if needed.
For dependent life insurance, you are automatically the beneficiary in the event of a covered death or loss.
You may make a gift assignment of all rights of insurance ownership for which you have named a beneficiary. If you choose to assign your insurance, only the person to whom you assigned the insurance may designate a new beneficiary or use other rights under the plans. You may request assistance from your Benefits Department to complete an Assignment of Benefits form. It is up to you to see that the assignment is legal in your state and accomplishes your specific goals.
If you stop active work because of an illness or accidental injury and you are not totally disabled, your basic life coverage may continue for 12 months or until you reach age 70, if earlier.
If you become totally disabled before age 60, your basic life insurance may continue until you no longer receive Long Term Disability benefits or are no longer totally disabled. If you become totally disabled at age 60 or later, your basic life insurance may continue until you are no longer totally disabled or the date you reach age 70, if earlier. Keep in mind that age-related reductions to life insurance coverage will still apply while you are totally disabled and covered under the life insurance plan.
If you are on an approved Family and Medical Leave, you will be considered to be an active employee and your basic and supplemental life insurance coverage will continue uninterrupted as long as premiums are paid (the Company will continue to pay for basic life insurance while you must pay for supplemental life insurance). If you are not receiving a paycheck during your approved leave, you must make arrangements with the Benefits Department to pay premiums for supplemental life insurance while you are on leave.
Continuation of insurance is subject to all other terms of the policy.
Your dependent's insurance will also be continued while your insurance is continued.
Claims should be filed as soon as possible following the loss. Your beneficiary may contact the Benefits Department for assistance with completing the necessary claim form.
Life insurance benefits are normally paid in a single lump sum to your surviving beneficiary in the event of your death. Other payment methods may be available if requested and agreed to by the insurance company.
If no beneficiary designation is in effect at the time of your death, benefits will be paid in the following order:
- Surviving spouse or domestic partner
- Surviving children in equal shares
- Surviving parents in equal shares
- Your estate
The person receiving benefits must be living on the tenth day after your death.
For dependent insurance, benefits will be paid to you. If you are not living at the time benefits would otherwise be paid, benefits will be paid in the following order:
- Your spouse or domestic partner
- Your estate
For supplemental and dependent life insurance, benefits will not be paid if you (or your covered dependent) commit suicide within two years from the date coverage begins. Instead, the insurance company will refund the amount of premiums paid.
During the first two years of your coverage, the insurance company can contest the validity of your insurance due to inaccurate or false information relating to your or your dependent's insurability.