The following information applies to your life and accident insurance benefits.

Naming Your Beneficiary
You may name anyone as your beneficiary and you may change your beneficiary designation at any time by completing the appropriate form available from the Benefit Plans Office.  Forms are also available on the Forms web page.  The beneficiary you name for basic life insurance benefits will automatically be your beneficiary for supplemental life and business travel accident insurance, unless you elect otherwise in writing.  You may also name anyone as your beneficiary for special accident insurance.

If you do not designate a beneficiary, basic and supplemental life insurance benefits will be paid to your estate.  Business travel accident and special accident insurance benefits will be paid to the first survivor among the following beneficiaries:

• your spouse
• your child or children
• your mother or father
• your sisters or brothers.

If you do not have any living beneficiaries, your business travel accident and special accident insurance benefits will be paid to your estate.

If you elect dependent life coverage or family coverage under the special accident insurance plan, you will automatically be the beneficiary in case of the death of a family member, unless you elect otherwise in writing. 

Costs for Coverage
As described in the “About Your Benefits” section, you and the Company share the cost of basic life insurance coverage.  You pay the full cost of all supplemental life insurance and special accident insurance coverage.  The Company pays the cost of business travel accident coverage.

Tax Consequences
Under current tax law, employer-paid insurance coverage in excess of $50,000 may result in additional taxable income for federal income and FICA tax purposes.  This additional taxable income, called imputed income, is reported on your W-2 earnings statement as “other income.”

Claiming Benefits
You or your beneficiary must file a claim with the Benefit Plans Office in order to receive any life and accident insurance benefits.  By contacting the Benefit Plans Office, you or your beneficiary will receive the necessary forms, as well as instructions and assistance in filing forms.

When Coverage Ends
Basic life insurance ends on the date your employment terminates for any reason other than retirement, after you become eligible for an immediate pension benefit, or Total and Permanent Disability. 

Supplemental life insurance ends on the date your employment terminates unless you are approved for Total and Permanent Disability.  Dependent coverage ends on the date your employment terminates.  Business travel accident insurance and special accident insurance coverages end on the date your employment terminates for any reason.

If you are on temporary suspension of work or an approved leave of absence, you may continue your basic life insurance and supplemental life insurance coverage until the end of the third month following the month in which your absence began.  In addition, you may elect to continue your special accident insurance coverage for up to 12 months if you are on an approved leave of absence or long-term disability, provided you continue to pay the required premiums.

Basic life insurance, supplemental life insurance, business travel accident insurance, and special accident insurance coverages may end before termination of employment.  However, these coverages will end on the earliest of the following dates:

• the date you are no longer considered eligible because of a change in your employment status and (if eligible) you elect not to continue coverage
• the last day of the period for which your last contribution was made
• the date the plan is terminated.

If you should die (in a circumstance or event otherwise covered by the life insurance benefits provided under this plan) within the 30-day period after your coverage terminates, basic life insurance and supplemental life insurance benefits will be paid.

Special accident insurance coverage for a dependent child will end the earlier of 120 days after your child stops being a full-time student or if your child turns age 28, marries, or begins full-time employment.
Employment during school break periods is not considered full-time employment.  If the dependent child is not enrolled in school full-time, coverage for that child will end at age 18.

Conversion Privileges
Within 30 days after your basic life insurance, supplemental life insurance, spouse and dependent life insurance and special accident insurance coverages terminate, you may convert all or part of these coverages to individual insurance policies without taking a medical examination.  The cost for individual coverage will be based on the insurance company’s regular premium rates for the type and amount of insurance available to you through the conversion privilege.  The conversion privilege under the special accident insurance plan ends at age 70.

If your basic life coverage is reduced, you will also have an opportunity to convert the amount of discontinued insurance to an individual policy within 30 days after the reduction without taking a medical examination. 

If your life and/or accident insurance coverages terminate, you may contact the Benefit Plans Office to request a conversion form.
Business travel accident insurance may not be converted.

Portability
Although your costs may differ from what you are currently paying, the cost to continue your supplemental life coverage under the portability option is generally less expensive than converting to an individual life insurance policy.  When you elect to continue coverage under the portability option you won't lose the valuable features of the Total Control Account (TCA) or the Accelerated Benefits Option (ABO).

Within 31 days after your supplemental life insurance coverage terminates due to voluntary termination, retirement, or dismissal, you may port all of the coverage without taking a medical examination.  The cost for the ported coverage will be based on your age and will increase incrementally as you get older.
The portable coverage reduces at age 70 and terminates at age 80.  (You may convert the ported coverage when the benefit reduces at age 70 and when it terminates at age 80.)

Portability
The minimum amount of coverage that you can port is $20,000 and the maximum amount is the amount of supplemental life coverage you had at the time your group supplemental life benefits ended.  Once you select a coverage amount, you may only decrease coverage in the future; you cannot increase the amount. 

If your supplemental life benefits terminate, you may contact the Benefit Plans Office to request an Election of Portable Coverage Form.

Note:  You may not continue group coverage under portability AND convert the coverage to an individual policy.  If you elect portable coverage and it is reduced or ends due to age, new conversion rights may be triggered.

 

Administrative Information Information about the administration of your life and accident insurance benefits can be found in the section entitled “Administrative Information.”