GROUP LIFE AND AD&D

Group Life Coverage – the need for Group Life Insurance is the unexpected death of a family member can cause great financial hardship and can be avoid with adequate Life Insurance.  Can be employer paid, employer and employee paid, voluntary. Offered to dependents of the policyholder – either voluntary or employer paid.  Supplemental coverage available over and above what the employer would offer with composite rates or age banded rates.

Voluntary requirements – at least 25% participation but based on the Insurance Carrier

Employer Paid – 100% participation

Employer Paid & Employee Paid – 100% Participation

Employee Paid – At least 75% participation

Benefits – You may have a flat benefit amount or 2 times your annual earnings to whatever benefit you want to choose from.  Benefits can be as low as $10,000 and can be as high as $750,000 or even higher – which is negotiable with the Insurance Carrier.  It is usually based on demographics, salary and occupation. The highest Guarantee Issue amounts available, Living Care and Accelerated Death Benefits, portability and Conversion privileges are just a few highlights offered in a Group Life policy.

Age Reduction and Exclusions – typically at 70 the Life benefit is reduced and further reduced as you reach 75.

Benefits are payable to your beneficiary.

AD&D – works alongside your Group Life policy and provides additional protection for your employees in the event of an accident bodily injury resulting in death or dismemberment.  Benefits resulting from a death are paid to the named beneficiary and benefits resulting from a dismembering injury are paid to the insured. The loss must occur within 365 days of the accident. Here is a list of how the benefits are paid:

Loss Life – full benefit

Both hands or both feet or sight of both eyes – the full amount

One hand and one foot – the full amount

One hand or one foot and the sight of one eye – the full amount

One hand or one foot – One half the full amount

Sight of one eye – One half the full amount

Speech and hearing – One half the full amount

Thumb and index finger of the same hand – One quarter of the full amount

You can purchase AD&D along with your Group Life policy on the same contract or you can purchase it separately. It can be completely voluntary, employee paid, employer paid and offered to dependents of the policyholder and finally you can purchase additional benefits amount on a supplemental basis.  If purchased with your Group Life contract the benefit typically mirrors your Group Life benefits.

AD&D – some added benefits are the repatriation or mortal remains – the insurance carrier will pay benefits as long as the death occurs at least 75 miles from his or her primary residence as a result of an accident.  The benefit will be paid to the beneficiary usually up to an additional %5000 for the preparation and transportation of the body to a mortuary chosen by the authorized representative.  There is also a seat belt and air bag benefit which will pay an additional amount of $10,000 if the insured dies as the result of an accident while either driving or riding in a private passenger car and was wearing a seatbelt. If the insured was protected by an airbag, in addition to the seat belt, the benefit will be $15,000