2014 Presentation. Richardson Independent School District

Transcription

1 Richardson Independent School District 2014 Presentation Supplemental Term Life Insurance Short Term & Long Term Disability Accidental Death & Dismemberment

2 Who is Eligible? You are eligible for coverage if you are: a full time, active employee of RISD work at least 30 hours a week hold an allocated, budgeted position 2

3 Why Unum Proven experience The #1 provider of disability benefits in the U.S. for 35 years 1 We listen to you Our benefit specialists understand how an illness or injury can affect your life We put people first Professional, prompt, courteous service during difficult times Financial stability Solid financial ratings, even in today s tough economy 1 Gen Re 2010 U.S. Disability market surveys, 2011, JHA Disability market Surveys ,and annual survey of the Employee Benefits Research Institute (EBRI) for 21 years prior to

4 What happens after you re gone? How can you protect the people you care about? 25% of household heads surveyed said they do not have a plan in place to provide a decent standard of living for their families if they die tomorrow. 1 Unum group term life insurance can help. 1 LIMRA, Facts About Life 2006, August

5 The solution Unum group term life insurance What is term life insurance? Provides insurance coverage for the period during which premiums are paid Is the simplest and least expensive form of life insurance Qualifying for coverage At annual enrollment you can enroll in the lowest amount of coverage or you can increase coverage by 1 level without evidence of insurability If you select a higher amount of coverage, then you will be asked to complete an evidence of insurability form and submit to Unum Why purchase term life insurance from Unum? Competitive group rates Payroll deduction Flexible coverage Portability 5

6 How much insurance do you need? Outstanding debt Mortgage balance Other debt $ $ $ Ongoing expenses (Utilities, insurance, food, gas, education, savings, etc) $ Future plans (College, retirement, long term care, etc) Total Current coverage Amount of potential need $ $ -$ $ 6

7 Supplemental Term Life Insurance RISD provides $10,000 Basic Life Insurance at no cost to you. You may purchase additional life insurance coverage for: Yourself 1,2, 3 or 4 times your annual earnings to a maximum of $490,000. Your Spouse - $10,000, $20,000, $30,000, $40,000 or $50,000 to a maximum of 50% of your life insurance coverage election. Your Child(ren) - $5,000 or $10,000 not to exceed 50% of your life insurance coverage election. Your election(s) may be subject to Evidence of Insurability see your enrollment packet for details. 7

8 Life Benefit highlights Accelerated benefit If you become terminally ill and are not expected to live more than 12 months, you may request a certain percentage of your insurance amount. Upon your death, any remaining benefit will be paid to your designated beneficiaries. Retained asset account Benefits can be paid through a deposit made to an interestbearing account to your beneficiaries. (Applies only to benefit amounts of $10,000 and over.) *Benefit exclusion - Benefits will not be paid if an insured commits suicide within the first 24 months of coverage or within 24 months on any increase in coverage. 8

9 Life Planning services counseling Counselors are specially trained to provide financial, legal and emotional support during a difficult time. The financial advice is objective and customized to the individual s situation. Counselors do no receive commission for advocating any particular service or solution. 1 Claim is received 2 Employee or beneficiary is contacted by telephone 3 A personalized financial plan is developed 4 Toll-free access to further assistance is available for 12 months Life Planning Financial & Legal Resources is provided by Ceridian Corporation. This service is available with select Unum insurance offerings. Exclusions, limitations and prior notice requirements may apply, and service features, terms and eligibility criteria are subject to change. Ceridian Corporation is not engaged in rendering legal advice. Users should consult their own attorneys. The services are not valid after termination of coverage and may be withdrawn at any time. Please contact your Unum representative for full details.

10 Work-life balance employee assistance program An employee information resource for both everyday needs and serious problems Our full suite of services can help with: Face-to-face visit with counselor Emotional well-being Addiction and recovery Referral to EAP resources during disability Parenting and child care Health and worksite issues Personnel management Financial and legal issues Work-life balance employee assistance program services are provided by Ceridian Corporation. These services are available with selected Unum insurance offerings. Exclusions, limitations and prior notice requirements may apply, and service features, terms and eligibility criteria are subject to change. The services are not valid after termination of coverage and may be withdrawn at any time. Please contact your Unum representative for full details.

11 Worldwide emergency travel assistance Emergency travel assistance is available while traveling to another country or even just 100 or more miles from home. Saves you time, enhancing productivity. Valued by employees. Guaranteed hospital admission* Emergency medical evacuation Prescription replacement Medical referrals to Western-trained, English-speaking medical providers Care and transport of unattended minor children One toll-free call, any time day or night, provides access to global services. Worldwide emergency travel assistance services are provided by Assist America, Inc. All emergency travel assistance must be arranged by Assist America, which pays for all services it provides. Medical expenses such as prescriptions or physician, lab or medical facility fees are paid by the employee or the employee s health insurance. Services are available with selected Unum insurance offerings. Exclusions, limitations and prior notice requirements may apply, and service features, terms and eligibility criteria are subject to change. These services are not valid after termination of coverage and may be withdrawn at any time. Please contact your Unum representative for full details. *May require a validation of your medical insurance or an advance of funds to the foreign medical facility. You must repay any expenses related to emergency hospital admissions to Assist America Inc. within 45 days.

12 Additional Coverage: Unum AD&D insurance Accidental death and dismemberment You may purchase AD&D coverage of one, two, three or four times your annual earnings. Your AD&D election may not exceed your Supplemental Term Life Insurance coverage election. Evidence of Insurability is not required. This benefit is paid in addition to the life benefit if you: Die in a covered accident Suffer a covered dismemberment or disability 12

13 Short & Long Term Income Protection Plans 13

14 Can You Afford a Disability? There s a lot depending on your paycheck! 14

15 Why Protect Your Income Against a Disability? Many people think disability happens only to older people, but... Workers between the ages of 35 and 65 have a 30% chance of becoming disabled and unable to work for 90 days or longer.* Once a person has been disabled for 90 days, the average length of disability is 2.5 years.* Three out of every 10 employees between the ages of 35 and 65 will be out of work for three months or longer due to an accident or illness.* Almost 3 in 10 workers entering the work force today will become disabled before retirement.** *Commissioner s Individual Disability Table A, Society of Actuaries, The Society s 1985 statistics are the current standard for income protection risk evaluation and policy pricing throughout the insurance industry. **Social Security Administration, Fact Sheet, January 31,

16 Helping to Protect Your Income Personal Savings Nearly one quarter of Americans are living paycheck to paycheck: they have no money left once they have paid their essential living expenses. 1 Would you have enough to last through a long-term illness or injury? Workers Compensation About two-thirds of all disabling injuries suffered by American workers in 2004 occurred off the job and are not covered by workers compensation. 2 Health Insurance Covers only your medical bills and offers no financial security for your everyday expenses. 1 LIMRA, Choosing Benefits: A Battle for the Employee Dollar, by Anita Potter and Yuliya Babushkina, March 16, National Safety Council, Injury Facts edition. 16

17 Income Protection Plans Short Term Weekly benefit equal to 60% of your base weekly earnings, to a maximum of $500 per week May receive up to 10 weeks of benefits Benefit begins after 20 days of continuous disability or sickness Long Term Monthly benefit equal to 60% of your base monthly earnings to a maximum of $5,000 per month Duration of benefits is based on your age when disability occurs and if you continue to meet the definition of disability*. Benefit begins the later of 90 days of continuous disability or the date your Short Term payments end, if applicable Short & Long Term Coverage Elections are subject to Evidence of Insurability *See enrollment packet for definition of disability 17

18 Definition of Short Term Disability Scenario: You are out of work or plan to be out of work due to a short term disability. Generally, the following steps would then be taken: ELIMINATION PERIOD BEGINS Your elimination period will require a specified amount of time to pass before your disability benefits begin to accrue. REGULAR OCCUPATION DEFINITION ACTIVATED Your disability benefits will be paid if you are limited from performing the material and substantial duties of your regular occupation and are experiencing a 20% loss of earnings. Benefits payable to a maximum of 10 weeks 18

19 Definition of Long Term Disability Scenario: You are out of work due to a long term disability. Generally, the following steps would then be taken:* ELIMINATION PERIOD BEGINS REGULAR OCCUPATION DEFINITION ACTIVATED ANY OCCUPATION DEFINITION ACTIVATED Your elimination period will require the later of 90 days of continuous disability or the date of your last Short Term payment, if applicable, to pass before your disability benefits begin to accrue. The first part of your disability benefits will be paid if you are limited from performing the material and substantial duties of your regular occupation and are experiencing a 20% loss of earnings. These benefits are payable up to 24 months. After benefits have been paid for 24 months, you are disabled if you are unable to perform the duties of any gainful occupation for which you are reasonably fitted by education, training or experience. Benefits payable up to age 65 *Assumes continuation of original injury or illness 19

20 Mental Illness Long Term Disability Disabilities due to mental illness have a limited payment period of 24 months per lifetime. Such benefits would continue beyond 24 months only if you are institutionalized or hospitalized as a result of the disability. 20

21 Pre-Existing Condition Exclusion Long Term Disability You have a pre-existing condition if: you received medical treatment, consultation, care or services, including diagnostic measures, or took prescribed drugs or medicines in the 12 months just prior to your effective date of coverage; and Your disability begins in the first 24 months after your effective date of coverage unless you have been treatment free for 12 consecutive months after your effective date of coverage. 21

22 Instances When Benefits May Not Be Paid Benefits may not be paid for disabilities caused by, contributed to by, or resulting from: intentionally self-inflicted injuries active participation in a riot war, declared or undeclared, or any act of war Conviction of a crime Attempt to commit or commission of a crime loss of professional license, occupational license or certification pre-existing conditions Any period of disability during which you are incarcerated An occupational injury or sickness other exclusions may apply 22

23 Return to Work Assistance Long Term Disability When appropriate, we will provide a written rehabilitation and return-towork plan developed specifically for you. If you are participating in the plan, we will pay an additional 10% of your gross disability payment to a maximum of $1,000 per month. We will make monthly payments to you for three months following the end of your disability if you are participating in the program and are unable to find employment. 23

24 Dependent Care Expense Benefit - Long Term Disability If you are participating continuously in a rehabilitation and return-to-work assistance program and are incurring dependent care expenses for your dependent children, you may receive the Dependent Care Expense Benefit. The benefit pays $350 per child to a maximum of $1,000 per month for all eligible children combined to reimburse your incurred expenses. To receive the benefit you: Are incurring expenses to provide care for a child under the age of 15; and/or Start incurring expenses to provide care for a child age 15 or older or a family member who needs personal care assistance 24

25 Visit us on the web at Unum.com See your enrollment packet for more information. If you have any questions call Insurance Services at or Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. Underwritten by the following subsidiary of Unum Group: Unum Life Insurance Company of America, 2211 Congress Street, Portland, Maine Policies or provisions may vary or be unavailable in some states. Policies have exclusions and limitations which may affect any benefits payable. See the actual policy or your Unum representative for specific provisions and details of availability. PP-95 (3-08) 25