BASIC LIFE Basic life insurance provides financial assistance to the designated beneficiary of a deceased employee. Schedule of Insurance
The amount of insurance must be based on factors relating to employment, such as class, salary or occupation.
It is usually either a flat amount or a multiple of the employee’s earnings.
Overall Maximum and Non-Evidence Maximum (NEM)
The overall maximum amount of life insurance a carrier will offer on the life of any one employee is based on the size of the group.
A certain amount of life insurance may be available to all employees without evidence of insurability. Employees eligible for additional coverage are required to submit evidence of insurability.
Living Benefit
Some carriers will pay a portion of the Life amount in the form of an advanced death benefit for employees who are terminally ill.
Disability Benefit (Waiver of Premium)
If an employee becomes totally disabled the life insurance coverage will remain in-force without the further payment of premium until the employee reaches age 65.
Conversion Privilege
Employees under age 65 may be entitled to convert all, or a portion of their group coverage, to an individual policy upon termination of employment.
Reduction and Termination of Coverage
The amount of life insurance generally reduces by 50% at age 65 and terminates at the earlier of age 70 or retirement.
Dependent Life helps to provide the employee with financial resources to meet funeral and burial expenses upon the death of a dependent.
Schedule of Insurance
The amount of coverage for each dependent is usually quite modest. A typical benefit would be:
Spouse $10,000
Each child $ 5,000
Disability Benefit (Waiver of Premium)
If the employee qualifies under the Basic Life Waiver of Premium provision the premiums for this coverage may also be waived.
Conversion Privilege
A spouse, under age 65, is usually eligible to convert their coverage to an individual policy when the employee’s group coverage terminates or upon the employee’s death. Termination of Coverage
Coverage generally terminates at the earlier of age 70 or retirement.
Accidental Death and Dismemberment (AD&D) insurance pays a benefit if the employee dies or suffers specified injuries as a result of an accident. Coverage is normally provided on a 24-hour basis and covers accidents which occur on and off the job. The death benefit is payable to the beneficiary designated under the Basic Life benefit. For other losses, the benefit is payable to the employee.
Schedule of Insurance
The principle amount of the AD&D benefit is normally equal to the Basic Life amount. The full principle amount is payable for loss of life.
A percentage of the principle amount is payable for other losses, the amount of which is dependent upon the loss suffered. The definition of loss usually includes “loss of use of” (i.e. loss of use of a hand, foot, arm or leg).
Additional Benefits
Some products may also include the following benefits:
Respiration
Exposure and Disappearance
Rehabilitation Benefit
Family Travel
Education Benefit
Spousal Occupational Training
Day Care Benefit
Seat Belt Benefit
Disability Benefit (Waiver of Premium)
If the employee qualifies under the Basic Life Waiver of Premium provision the premiums for the AD&D coverage may also be waived. Reduction and Termination of Coverage
The reduction and termination clause is generally the same as that under the Basic Life benefit.
.gif){kind=small}
Basic Life