What

is

Life insurance provides for the payment of a specified benefits to designated beneficiary upon death of the insured person

How

The insured (the customer) selects the coverage he or she wants and pays a premium for this insurance.

The more coverage the customer selects, the higher the premium. Upon the death of the insured, the beneficiaries are given the amount of the policy (minus loan amounts, if any).

Works

Evidence of Insurability

Process

Evidence of Insurability

Imputed

income

Imputed income is the monetarv value the Internal Revenue Service (IRS) attaches to emplovee/retiree term life

insurance plan amounts in excess of $50,000. Emplovees mav notice an increase in the amount of taxes withheld from their pav check due to this issue.

Employees can name one or more primary beneficiaries for every plan in which he or she participates.

Employees can also name one or more contingent or secondary beneficiaries who will receive plan benefits if all primary beneficiaries die before the employee.

If an employee dies and does not have a beneficiary on file, or if the employee's primary and contingent beneficiaries have died before the employee, the benefit will be paid according to the plan rules.

Plan rules typically pay out benefits to survivors in the following order: (1) spouse, (2) children, (3) parents, (4) siblings, and (5) estate of the insured.

Types

1 X

Term Life Insurance is the least expensive life insurance because it has no cash value and because coveragedecreases as the insured gets elder. This feature is what keeps the premiums low.

The Child Life Insurance Plan pays benefits to the employee only, as the beneficiary, if his/her child dies while covered by the plan.

The plan covers all eligible children. Each child receives the same coverage, regardless of how many children are in the employee's family. Children must meet eligibility requirements.

Accidental Death & Dismemberment (AD&D) provides financial protection against death or loss of hand, foot, sight, etc., (varies by client) as the result of an accident. If an employee is physically impaired by an accident, a benefit is paid to him, her based on the AD&D policy's schedule of benefits.

Business Travel Accident Insurance (814) provides extra protection if an employee dies or is severely injured in an accident while traveling on company business.

These benefits are paid in addition to amounts paid from the life insurance and AD&D plans.