Group Life and AD&D Plan
   

Flexibility Handbook

 

 

Table of Contents

Click on any item below to go to that section.


Introduction

This section:

  • Outlines the core Life and AD&D insurance coverage provided by PeaceHealth at no cost to you.
  • Explains your options for purchasing additional coverage for yourself, your spouse, or your dependents.
  • Describes the circumstances under which you must provide proof of good health in order to obtain higher levels of insurance coverage.
  • Explains the procedure for submitting claims.

Group Life and AD&D Overview

The Group Life and Accidental Death and Dismemberment (AD&D) Plan is offered to provide a level of financial protection for you and your dependents. Life insurance provides benefits to your beneficiary if you die. Accidental death and dismemberment insurance provides benefits if you die or are severely injured in an accident.

Group Life and Accidental Death and Dismemberment (AD&D) insurance is provided to FlexAbility Benefit Plan members through MetLife Insurance. This section summarizes information contained in the group insurance certificate. When there is a dispute between this summary and the certificate, the certificate will supersede any provision listed in this summary. To obtain a copy of the certificate, please contact your local Human Resources department

Return to Life/AD&D Table of Contents

Life Insurance

Through PeaceHealth, you receive Core Life Insurance at no cost to you. Your core life insurance benefits are determined by the job you hold in the company and by your base salary. Under this plan, if you die, your beneficiary will receive your core life insurance benefits in a single sum or, if desired, in installments. The maximum benefit is $50,000.

Core Life Benefit

Maximum Benefit

Minimum Benefit

50% of your annual base pay

$50,000

$5,000

Note: Base pay is rounded to the next higher multiple of $l,000

Core life insurance amounts are reduced beginning at age 70.

When you are: Your core life insurance benefit is:
70 years of age 65% of the amounts shown in the table above
75 years of age 45% of the amounts shown in the table above
80 years of age 30% of the amounts shown in the table above

Optional Life Insurance

Our Life Insurance plan allows you to purchase additional "optional" insurance, based on your annual base pay, as shown in the table below. You can purchase as much as 5 times your annual base pay up to a maximum of $1,000,000.

Option
1X annual base pay
2X annual base pay
3X annual base pay
4X annual base pay
5X annual base pay
Maximum $1,000,000

Note: Base pay is rounded to the next higher multiple of $l,000

The amounts of your Optional Life Benefit are not subject to reduction.

Return to Life/AD&D Table of Contents

Dependent Life Insurance

Core Life Insurance coverage is also provided for your dependents in the amount of $1,000 per dependent. Again, this is provided by PeaceHealth at no cost to you.

If desired, you may purchase additional coverage for your spouse and dependents, as shown in the table below. Note that you can purchase increasing levels of coverage for your spouse; however, the coverage for each dependent remains the same for all options. Coverage for dependents applies only to children 6 months to 19 years of age (23 years, if a full time student).

Option

Spouse

Dependents

1

$5,000

$5,000/each

2

$10,000

$5,000/each

3

$25,000

$5,000/each

4

$50,000

$5,000/each

Dependent life insurance is in effect only if your personal insurance is in effect. Your dependents are eligible for dependent life insurance coverage on the date you become eligible for life insurance or on the date the person becomes your dependent, whichever is later. The amount of dependent life insurance coverage on any one of your dependents cannot be more than 50 percent of the amount of personal life insurance coverage you have. Any reduction in your life insurance coverage may result in a reduction of your dependent coverage as well. Changes to coverage amounts become effective on the date the change occurs.

Proof of Good Health

During 2004 Open Enrollment, you have the opportunity to elect the same level of Life Insurance coverage or increase coverage for you or your spouse. In some cases, you may need to provide proof of good health.

Note that new proof of health requirements will take effect next year.

For Yourself

  • You can re-elect Life Insurance coverage in the amount of 1, 2, or 3 times your base pay with no proof of good health (Evidence of Insurability.)
  • You can newly-elect 1, 2, or 3 times your base pay with no proof of good health, provided you have not been hospitalized in the past 90 days. If you have, you must provide Evidence of Insurability.
  • You can newly elect 4 or 5 times your annual base pay. You must provide Evidence of Insurability.
  • New Hires Only: You are first required to answer whether you have been hospitalized in the last 90 days.

For Your Spouse

  • You can elect Dependent Life Insurance coverage for your spouse in the amount of $5,000 or $10,000 with no proof of good health (Evidence of Insurability.)
    New hires only: You are first required to answer whether or not your spouse has been hospitalized in the last 90 days.
  • If you elect coverage in the amount of $25,000, no Evidence of Insurability is required unless your spouse has been hospitalized in the past 90 days. If so, you must provide Evidence of Insurability.
  • If you elect coverage in the amount of $50,000, Evidence of Insurability is required.

Return to Life/AD&D Table of Contents

Accelerated Life Insurance

If you become terminally ill while insured under this life insurance plan, you are eligible to receive up to 50 percent of the benefit while still living. (This also applies to dependent life insurance.)

A terminal illness is defined as a medical condition that, in the opinion of a physician, is expected to result in death within 12 months.

To receive this benefit you must:

  • Become terminally ill while insured under the life insurance plan.
  • Provide satisfactory proof that you have a terminal illness and submit to an independent physical examination, if requested.
  • Continue to make premium payments on the full amount of the life insurance before receiving the accelerated benefit.

Any benefits received under this provision may be taxable income and you should consult a personal tax advisor prior to electing this benefit.

Other requirements may apply. For more information, please contact your Claims Administrator.

Return to Life/AD&D Table of Contents

AD&D Insurance

Through PeaceHealth, you receive core AD&D Insurance at no cost to you. Your core AD&D benefits are determined by your base salary, as shown in the table below. The maximum benefit you may receive is $50,000.

Core AD&D Benefit

Maximum Benefit

Minimum Benefit

50% of your annual base pay
$50,000 $5,000

Note: Base pay is rounded to the next higher multiple of $l,000

Under this plan, AD&D benefits are paid to you or your beneficiary in the event you are injured in an accident resulting in your death or a permanent loss within one year of the accident date. The table below lists some of these benefits:

Loss AD&D Benefit
Death Pays 100% of coverage
Permanent loss of two hands, feet, or eyes in one accident Pays 100% of coverage
Permanent loss of one hand, foot, or eye Pays 50% of coverage

Permanent loss of hands or feet is defined as severance at or above the wrists or ankle joints respectively. Permanent loss of eyes is defined as complete and permanent sight loss. Click here for more detailed information.

If you die as a result of an accident, your beneficiary would receive benefits from both the group Life and the AD&D plans.

Beginning at age 70, core AD&D benefits are reduced on the same schedule as your personal life insurance. For schedule details, go to Life Insurance.

Return to Life/AD&D Table of Contents

Optional AD&D Coverage

As with Life Insurance, our AD&D Insurance plan allows you to purchase additional "optional" insurance, based on your annual base pay, as shown in the table below. You can purchase as much as 5 times your annual base pay up to a maximum of $500,000.

Optional AD&D Insurance

1 times your annual base pay
2 times your annual base pay
3 times your annual base pay
4 times your annual base pay
5 times your annual base pay

Note: Base pay is rounded to the next higher multiple of $l,000

Return to Life/AD&D Table of Contents

What Is Not Covered

AD&D Insurance does not cover losses caused by:

  • War or any act of war, whether declared or not
  • Suicide, the attempt, or any intentional self-injury, while sane or insane
  • Disease or infection, except pyogenic or septic infections of accidentally sustained visible wounds
  • Injury to you while committing a felony
  • Voluntary injection, inhalation, or ingestion of a substance for purposes other than those prescribed by a doctor

Filing Claims

In the event of a death, send proof of death to your local Human Resources department within 90 days. Human Resources will complete the necessary paperwork and file a claim on your behalf.

Benefits are paid in a lump sum unless you have requested and had approved another method of payment.

Benefits are paid to your designated beneficiary. If no beneficiary is designated, then benefits are paid according to this list:

  • Your spouse
  • Your children
  • Your parents
  • Your brothers and sisters
  • Your estate

If Your Claim Is Denied

If your claim is denied, either in full or in part, and you do not agree with the reason, submit a letter and supporting information to Human Resources within 60 days of receiving the denial.

State why you believe the claim should not have been denied, providing any supporting data, questions, or comments you think are appropriate. You will receive a written confirmation that your appeal is being reviewed. At that time, you may be required to submit additional documents for the review.

Human Resources will forward your claim to the Claims Administrator, who will review it give a final decision no later than 60 days from receipt of your request. If there are any special circumstances, you will be notified and given the final decision no later than 120 days from receipt of your request.

To Contact The Claims Administrator

MetLife Insurance

Group Life Claims

PO Box 3016

Utica, New York 13504

1-800-638-6420

Return to Life/AD&D Table of Contents

End Of Coverage

Coverage for both Life and AD&D Insurance ends on the last day of the month in which you retire or terminate your employment. If the insurer ends the plan, or your employer ends the insurance contract, coverage would end on the date the plan or insurance contract is ended. Dependent insurance coverage automatically terminates when your personal insurance coverage terminates.

If you take a leave of absence, coverage automatically continues while you are on an approved leave if you pay your premiums. For more information, contact your local Human Resources department.

Life Insurance Extension For Disability

If you become totally disabled before age 60 and die within one year after the disability begins, your life insurance benefits will be paid to your beneficiary.

If you become totally disabled under the age of 60 and give satisfactory proof of disability within one year of the start of the disability, coverage will be extended without premium beginning with the second year of your continued coverage during disability. For more information, contact your Human Resources Department.

Life Insurance Conversion

If your life insurance ends, you may have the right to convert this policy to an individual whole life policy. You must apply for conversion within 31 days of your loss of coverage. Contact your Human Resources Department to apply.

Return to Life/AD&D Table of Contents