The basic group life insurance is equal to three times annual earnings to a maximum of $300,000.
The maximum benefit reduces by $20,000 on the July 1st coincident with or next following the employee’s attainment of age 61 (and each subsequent July 1st until age 65, inclusive). The maximum benefit further reduces by $30,000 on each subsequent July 1st and coverage terminates upon attainment of age 70, or earlier retirement.
In the case of an employee without dependents, this benefit will be paid to your estate or designated beneficiary.
In the case of an employee with dependents, the benefit will be paid as follows:
- A lump sum equivalent to one year’s salary at time of death will be paid to the designated beneficiary.
- The other 2/3 of benefit will be paid in equal installments over a 24-month period. At the end of the 24-month period, the survivor benefit will commence. This provides a benefit to the spouse of 25% of the employee’s earnings at time of death, plus an additional 5% for each dependent child, to a maximum of 3 children. Benefits payable to the surviving spouse will cease at age 65, remarriage or death, whichever is earliest. The maximum age for dependent children is 18 years or 22 years of age if attending an accredited university or college on a full-time basis. The dependent children’s benefit will not be affected in the event of remarriage or death of the surviving spouse.
Accidental death and dismemberment insurance provides coverage for permanent full time employees in amount equal to three times annual earnings. Coverage in varying amounts is provided for loss of hands, feet, arms, legs, sight and hearing.