FAQs: Group Life/ AD&D

When are life insurance benefits paid?
Life insurance benefits are paid to your beneficiary if you die while coverage is in effect. Some plans do not provide benefits if you die from certain causes, such as war or injury while you are committing a felony.

When are accidental death and dismemberment (AD&D) insurance benefits paid?
Accidental death and dismemberment (AD&D) benefits are paid to your beneficiary if you die as the direct result of a covered accident that occurs while coverage is in effect. AD&D insurance benefits are paid to you if you suffer certain severe injuries as the direct result of a covered accident that occurs while coverage is in effect. Such benefits are often expressed as a percentage of the total death benefit payable. If you suffer several covered injuries as a direct result of the same accident, the plan will typically pay 100% of the total death benefit payable, but no more. Some plans do not provide benefits if you die from certain types of accidents.

What is supplementary or voluntary life insurance?
Supplementary or voluntary life insurance is the amount of optional life insurance coverage your employer offers you. You elect whether or not to enroll for supplementary life insurance coverage.

When are supplementary life insurance benefits paid?
Supplementary life insurance benefits are paid to your beneficiary if you die while coverage is in effect. Some plans do not provide benefits if you die from certain causes, such as war or injury while you are committing a felony.

What is supplementary or voluntary AD&D insurance?
Supplementary or voluntary AD&D insurance is the amount of optional AD&D insurance coverage your employer offers you. You elect whether or not to enroll for supplementary AD&D insurance coverage.

When are supplementary AD&D insurance benefits paid?
Supplementary AD&D insurance benefits are paid to your beneficiary if you die as the direct result of a covered accident that occurs while coverage is in effect. Supplementary AD&D insurance benefits are paid to you if you suffer certain severe injuries as the direct result of a covered accident that occurs while coverage is in effect. Such benefits are often expressed as a percentage of the total death benefit payable. If you suffer several covered injuries as a direct result of the same accident, the plan will typically pay 100% of the total death benefit payable, but no more. Some plans do not provide benefits if you die from certain types of accidents.

What is dependent life insurance?
Dependent life insurance is life insurance coverage on the lives of your eligible dependents, such as your spouse and dependent children.

When are dependent life insurance benefits paid?
Dependent life insurance benefits are paid to you if the covered dependent dies while coverage is in effect. Some plans do not provide benefits, if the dependent dies from certain causes, such as war or injury, while the dependent is committing a felony.

Does enrolling for life and AD&D insurance require me to provide evidence of insurability?
Whether or not you must provide evidence of insurability depends on your plan. Your plan may require evidence of insurability for any of the following Insurance over certain dollar amounts Enrollment at any time after insurance was first offered Increases in insurance amounts Dependent insurance.

How do I name or change my beneficiary?
For many people, the largest inheritance they leave is the life insurance through their employers. It’s important to name a beneficiary(ies) to receive this insurance if you die, and to keep this designation up to date. If you name multiple beneficiaries, be sure to indicate the percentage or fraction of benefits payable to each, or indicate that the benefit is to be paid equally among survivors. To name your beneficiaries, most plans require you to complete and sign a beneficiary form, or to name your beneficiaries on your enrollment form. You may wish to consult an attorney before you name your beneficiaries, especially if you are naming dependent children or a trust It’s a good idea to name a primary beneficiary(ies) to receive benefits if you die, as well as a secondary beneficiary(ies) to receive benefits if your primary beneficiaries are not alive to receive your benefits. You can generally change your designation at any time.

What is a primary beneficiary?
A primary beneficiary(ies) receives benefits from your life insurance if you die before the primary beneficiary(ies). If all primary beneficiaries die before you do, benefits are paid to your secondary beneficiaries.

What is a secondary beneficiary?
A secondary beneficiary(ies) receives benefits from your life insurance if all primary beneficiary(ies) die before you do?

What happens if there is no beneficiary?
If you don’t name a beneficiary, or if no named beneficiaries survive you, your death benefits will be paid under the rules of your plan and applicable regulations.

Can I get any of my life insurance benefit benefits before death?
Some plans allow access to part of your life insurance benefits if you become terminally ill. This type of benefit has various names including Living Benefit and Accelerated Benefit Option. Check with your company to see if this benefit is available?

Is it true I can be taxed on life insurance protection?
Yes. The IRS requires your employer to report the value of any company-paid basic life insurance coverage over $50,000 on your W-2. This is not the same as being taxed on the amount of your coverage. This “imputed income” is not subject to federal income tax withholding, but is subject to

FICA tax withholding. You aren’t taxed on the actual amount of your company-paid coverage. Instead, your employer reports the amount the IRS considers an appropriate premium for the portion of your company-paid basic life insurance over $50,000. The IRS publishes these rates in tables based on your age.

What is assignment of insurance?
If your plan allows, you may assign your life insurance and AD&D insurance as an irrevocable gift to someone else. You may name that person to own your insurance, even though it is on your life If you make an assignment, you give up all your rights, and you cannot revoke the assignment at a later date. The person to whom you assign your insurance has the right to name beneficiaries, to change the amount of coverage or to exercise any other privileges under the insurance.