How Benefits Are Paid

Generally, life insurance benefits and AD&D death benefits of less than $10,000 are paid in one lump sum to the designated beneficiary as soon as administratively possible. For more information about designating a beneficiary, see “Naming a Beneficiary” within this section.

Benefits of $10,000 or more are paid through an account the plan administrator will establish. This is an interest-bearing account that will be established in the beneficiary’s name. He or she will then be able to write a check for the full amount or for $250 or more, as needed, until the funds are used up.

If none of your named designated beneficiaries are alive when you die or you have not named a beneficiary, benefits will be paid to your estate.

Claiming Death Benefits

To file a claim, notify Human Resources at 1-888-287-4369 and file a written claim with the insurance company. Before death benefits can be paid, the insurance company must receive a certified copy of the death certificate and a written claim.

Accelerated Life Insurance Benefit

If you or your dependent becomes terminally ill, you may have as much as 75% of your life insurance — up to $500,000 — paid to you before you die.

For you to receive an accelerated benefit:

• you must request the election in writing on a form acceptable to the insurance company,
• your physician must certify in writing that you are terminally ill and that you have a life expectancy of not more than 12 months, and
• your physician’s certification must be accepted by the insurance company.

Any amounts paid through this feature will reduce the benefit payable at your death. Also, you must continue to pay premiums on the full amount of your life insurance coverage unless you qualify to have your premium waived. See “If You Become Disabled” under “What Happens …” within this section.

There are tax implications to taking an accelerated benefit. You should consult a tax advisor before taking an early payment since the tax treatment may be less favorable than a death benefit. Call Human Resources at 1-888-287-4369 for more information about the accelerated benefit.

Assigning Your Benefits

The plan allows transfer of ownership of your Basic and Supplemental Life insurance benefits to another person or organization. However, there are considerations to take into account before making this decision, so you may want to consult your tax or legal advisor before doing so. For more information about assigning your benefits, contact Human Resources.

Filing a Claim

To file a claim for either life or AD&D insurance benefits, notify Human Resources. A representative will explain the benefits that are provided and what is needed to process the claim. If you or your beneficiary is to receive benefits from this plan, you must file a written claim with the insurance company. In the case of your death, your manager will notify Human Resources, and Human Resources will contact the beneficiary on file.

Before death benefits can be paid, the insurance company must receive a certified copy of the death certificate and a written claim. Payment is usually made within 90 days after all the proper documentation has been received.