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Home > Health Plan > D5 - Life Insurance and AD&D
LIFE INSURANCE AND AD&D BENEFIT
Your Life Insurance Benefit helps to protect your family from a sudden loss of income in the event of your death. If you die from any cause while you are an eligible active employee, the Life Insurance Benefit will be paid in a lump sum to your beneficiary.
This is an explanation of the Health Plan's life insurance policy and is your certificate while you are insured. The policy is issued by Fort Dearborn Life Insurance Company and is on file at the Benefits Fund Office. All provisions described are determined pursuant to the provisions, definitions, exceptions and reductions of the insurance policy. In the event of a discrepancy between this description and the policy, the terms of he policy shall control.
Benefit Amount
Naming a Beneficiary and Payment of Benefit
You may name anyone you wish as your beneficiary. You may change your beneficiary at any time. To name a beneficiary or to change your beneficiary, request that a Designation of Beneficiary for the Death Benefit form be sent to you or download a copy from the Forms page of this website; then complete and return it to the Benefits Fund Office. The designation or change will be effective when the completed form is received at the Benefits Fund Office.
If you do not designate a beneficiary, or if your designated beneficiary is not living at the time of your death, the Life Insurance Benefit will be paid to your estate, or at the option of the insurance company, to your surviving spouse or if not surviving, in equal shares to your surviving children, or if none survive, to your parents equally or the survivor, or if neither survives, in equal shares to your brothers and sisters who survive you.
You should review your choice of beneficiary every year to make sure your choice is up to date.
The Trustees have the right to pay benefits to any organization or person as needed to properly carry out the provisions of the Plan. Those payments that are made in good faith are considered benefits paid under the Plan.
Filing a Claim
Upon notification that your death has occurred, the Benefits Fund Office will send the proper forms to your beneficiary, estate administrator or survivor. Benefits cannot be paid until a completed claim form has been received by the Benefits Fund Office.
Coverage During Disability
If you become totally and permanently disabled before age 65, your life insurance coverage will continue at no cost to you, provided you remain totally and permanently disabled until your death. Coverage extended during your disability is reduced to $2,000 when you reach age 65.
For the purpose of this benefit, totally and permanently disabled means that, due solely to an illness or injury you are prevented from engaging in any business, occupation or employment for wages or profit.
To apply for continued life insurance coverage due to a total and permanent disability, contact the Benefits Fund Office after you have been disabled for a period of nine consecutive months, but not later than one year from the date your disability started. You will be required to complete the appropriate forms and provide proof of your disability. You may also be required to take a physical exam at the insurance company’s request. You will be contacted yearly for updated medical information verifying your disability.
Conversion to an Individual Policy
When you are no longer eligible for the Life Insurance Benefit, you may change part or all of your life insurance coverage under the Plan into a personal life insurance policy. You do not need to pass a medical examination to qualify.
If you have been insured under the Life Insurance Benefit for at least 5 years when it ends, you may change your Life Insurance Benefit amount to the smaller of:
To receive your individual policy you must:
The individual policy that is issued may be of any type customarily being offered by the insurance company, except term insurance. The policy will not include disability or other supplementary benefits. The premium is based on the current rate used by the insurance company according to the type and amount of the policy and your age on the date the policy is issued. The individual policy will be effective on the 32nd day following the date your group insurance ended.
Written notice of your conversion privilege will be given to you or mailed to your last known address. If you are not given written notice of your conversion privilege at least 15 days before the end of the 31-day conversion period, you will have:
to make your application.
If you die within 31 days after your Life Insurance Benefit coverage ends, we will pay the amount that could have been converted.
Accidental Dealth and Dismemberment (AD&D) Benefit
AD&D benefits are payable if you (the employee-member) sustain an accidental injury resulting in the loss of your life, a limb, or your eyesight within 90 days after the accident.
If you suffer more than one of the losses listed below in any one accident, payment will be made only for the loss for which the largest benefit is payable. Loss of hand or foot means that the limb is severed at or above the wrist or ankle joint, respectively. Loss of sight mneans the total and irrecoverable loss of sight.
Upon notification that your death or dismemberment has occurred, the Benefits Fund Office will send the proper forms for completion. Benefits for loss of your life are payable to your Life Insurance Benefit beneficiary. Benefits for any other loss are payable to you.
No benefit is payable under the AD&D benefit if death or any loss is caused directly or indirectly by:
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