Life and Disability, Accident & Critical Illness Insurance

Transcription

1 Life and Disability, Accident & Critical Illness Insurance SBAM has partnered with Lincoln Financial Group to develop an enhanced life, disability, accident and critical illness program that is unique for your customers. All products are available to groups with 1 to 99 eligible employees. Groups are not asked to provide SIC codes or job titles. Basic life, short term disability, long term disability, accident and critical illness can be written as stand-alone. Basic life is required in order to purchase dependent and voluntary life. Basic life, short term disability and long term disability are non-contributory (employer pays for 100% of premium for all eligible employees). 100% participation is required. Definition of full time employment can be as high as 40 per week or as low as 20 hours per week. Must be in business at least 1 year for life and short term disability coverage Must be in business at least 2 years for long term disability coverage Enrollment assistance for accident and critical illness coverage provided by our partner, EOI. Term Life Insurance and Accidental Death & Dismemberment Term life insurance helps provide financially for loved ones in the event of a loss. By including Accidental Death & Dismemberment (AD&D) the plan also covers severe accidental injuries. Basic Life and AD&D Amounts $15,000 $25,000 $50,000 1x BAE to $100,000 All options are guaranteed issue to full amount elected. Basic Life and AD&D Rate is $0.37 per $1,000 combined. Dependent Life Amounts* Spouse $5,000 Child(ren) $2,000 ages 6 months to 19 years or 23 for students Child(ren) $500 birth to age 6 months Dependent Life Rate (per family unit) is $1.61 *Can only be purchased in conjunction with the base life and AD&D Page 1

2 Age Reduction Schedule Employee benefits will be reduced to: 65% at age 65 40% of original amount at age 70; and 25% of original amount at age 75 Benefits terminate at retirement. Spouse benefits will terminate at age 70 A variety of plan options: Term life benefits can be a flat dollar amount or a percentage of salary with flexible Guarantee Issue amounts. Couple this with a variety of enrollment options and a wide range of plan designs are possible. Waiver of premium if disabled: If an insured is totally disabled for more than six months in a row from any occupation for which the insured is qualified (as set forth in the policy), premiums for the life insurance are waived. AD&D can double or triple the life benefit: With AD&D, a benefit is paid for loss of limb or eyesight due to a covered accident. If the insured loses his or her life as the result of the accident, the value of the life insurance is doubled. In addition, a common carrier provision is included that triples the life benefit if an accidental death occurs while a passenger on a common carrier (train, plane, etc). TravelConnect travel assistance services: These services are included with all life insurance policies at no additional cost. The travel assistance program is available to all insured employees and their dependents traveling more than 100 miles from home, whether for business or leisure. Services include everything from weather forecasts to help locating lost luggage or passports to emergency medical evacuation halfway around the world. BeneficiaryConnect assistance program: This service provides free grief, legal or financial counseling, memorial planning services, child/elder care referrals, and relocation services to beneficiaries after a loss Page 2

3 Voluntary Life and Accidental Death & Dismemberment* Employee Elections Minimum $10,000 / Maximum $500,000* Spouse Elections Minimum $5,000 / Maximum $20,000 Dependent child(ren) $10,000 after 6 months of age *Maximum amount not to exceed 5x annual salary Guarantee Issue Limitations Employee the lesser of $300,000 or 3 times annual salary Spouse $20,000 Child(ren) $10,000 Employees age receive $20,000 of coverage on a guaranteed acceptance basis. Employees age 75 and over are not eligible for coverage on a guaranteed acceptance basis. Spousal Voluntary Life benefits not to exceed 50% of the employee elected amount. Voluntary life is both portable and convertible. Voluntary Life / AD&D can only be purchased in conjunction with the group Basic Term Life / AD&D. Voluntary life / AD&D must be written with a policy effective date of not more than 60 days after the effective date of the group Basic Term Life / AD&D. Any Voluntary Life / AD&D plan with an effective date of more than 60 days after the group Basic Life / AD&D plan effective date will require evidence of insurability. 25% employee participation is required for Voluntary Life. Voluntary Life and AD&D Rates per $1,000 EE / Spouse - Spouse rate is based upon employee age. < 30 $ $ $ $ $ $ $ $ $ $ $ Dependent Child(ren) $2.00 Age Reduction Schedule Employee benefits will be reduced to: 65% at age 65 40% of original amount at age 70; and 25% of original amount at age 75 Benefits terminate at age 80 or retirement, whichever occurs first Page 3

4 Spouse benefits will be reduced to: 65% at employee age 65 Benefits terminate at employee age 70 or retirement, whichever occurs first Short-Term Disability Insurance The ability to earn income is sometimes the only financial security an employee has. If so, a disabling injury or illness can be devastating. That s why having short-term disability (STD) insurance from Lincoln Financial Group is an important employee benefit for your customers. This product is available for 13- to 26-week benefit durations with a variety of standard and optional benefits. There are no exclusions for pre-existing conditions. Elimination Period Options 1 st day accident / 8 th day illness 15 th day accident / 15 th day illness Benefit Duration Options 13 weeks 26 weeks Percentage of Salary 66.67% Weekly Benefit Maximum $1,000 STD Rates per $10 of weekly benefit 1 st day accident / 8 th day illness / 13 weeks of coverage = $.45 1 st day accident / 8 th day illness / 26 weeks of coverage = $ th day accident / 15 th day illness / 13 weeks of coverage = $ th day accident / 15 th day illness / 26 weeks of coverage = $.46 A lenient zero-day residual for the elimination period: This allows the insured to satisfy the elimination period with either total or partial workdays, so that an employee can work part time without starting a new elimination period. An aggressive work incentive benefit for part time work: Encourages the insured to return to work part time by allowing them to earn up to 99% of their pre-disability income Page 4

5 Enhanced disability benefits: Family Income Benefit: The loss of a loved one is difficult. If a family s primary income provider should die while disabled, the family may have no income to help pay for unexpected medical and care expenses. Lincoln s Family Income Benefit provides an additional benefit payment upon death to help fill the gap. Rehabilitation Assistance Benefit: The Rehabilitation Assistance Benefit is designed to encourage disabled employees to take part in valuable rehabilitation programs. Lincoln will pay an increased benefit amount to employees who participate in an approved rehab program. Plus, vocational rehab programs can be tailored to individual needs to help the employee return to work in less time. This benefit can also help the employer. Enhanced C-Section Benefit: More and more mothers are undergoing C-sections rather than a traditional birth. Lincoln recognizes this fact and also the important time mother and baby need after the procedure. The enhanced C-Section Benefit recognizes this shift with an expanded benefit period to accommodate a longer eight-week recovery time. The C-Section Benefit is one more example of Lincoln s commitment to provide benefits customers really need. Long-Term Disability Insurance Long-term disability (LTD) insurance helps protect an employee s income for a disability lasting longer than the elimination period defined as the policy (typically 13 to 26 weeks). Lenient zero-day residual for the elimination period: The insured is able to satisfy the elimination period with either total or partial workdays. Therefore, employees can work part time without starting a new elimination period. Generous partial disability calculation: This allows a claimant to receive up to 100% of pre-disability employment combined with the LTD benefit payment for the duration of the claim. Progressive income benefit: The core benefit is automatically increased by 10% when an insured suffers a temporary or permanent loss resulting in serious cognitive impairment or the inability to perform two or more Activities of Daily Living. Recovery benefit for commissioned employees: Provides a six-month supplemental benefit for commissioned employees while ramping up their pre-disability commissioned-based income Page 5

6 A value-added employee assistance program (EAP) at no additional cost: Lincoln EmployeeConnect is the standard EAP included with all Lincoln Financial LTD contracts and is available to all insured employees. Elimination Period Options 90 Day or 180 Day Benefit percentage 60% Benefit Maximum $6,000 Own Occupation Period 24 Months Benefit Duration Options 5 years or to age 70, whichever occurs first Social Security Normal Retirement Age Pre-existing Conditions If diagnosed with a specific condition within the last 12 months, and/or treated for that same condition within the last 6 months, individual may be ineligible for benefits for 24 months. LTD Rates per $100 of monthly covered payroll 90 day 180 day 5 year $.42 5 year $.35 SSNRA $.65 SSNRA $.55 Accident Insurance Lincoln Accident Insurance expands your benefit package and provides your customers employees cash benefits if they suffer a covered accidental injury. And because it's offered on an employee-paid basis, your customers employees get access to this valuable coverage at group rates with virtually no cost to you. The plan also includes Accident EAP and TravelConnect assistance. The employee, spouse and dependent children all receive the same benefit amount. Lincoln doesn t limit benefits for multiple injuries in a single accident. There are no exclusions for preexisting conditions, and there isn t a medical exam or health questionnaire to complete. Employees can keep coverage even if they retire or leave the company. Coverage is Guarantee Issue. Coverage is Guarantee Renewable. The option to continually build participation through annual enrollment. Benefits are paid directly to the covered employee. Attractive group rates are offered. Premiums can be paid by employee on a pre-tax or post-tax basis Page 6

7 Accident Insurance Cost Summary Rates shown are Monthly and guaranteed renewable. Final rates are subject to Lincoln Financial Group approval. Employee Only $16.04 Employee + Spouse $23.35 Employee + Child(ren) $27.56 Employee + Family $37.34 * On-the-job Accident Coverage included Critical Illness Insurance Lincoln pays a cash benefit upon diagnosis of a covered illness, regardless of any other income, expenses incurred or other insurance and there are no restrictions on how the money is used. This coverage can be offered on an employee-paid basis, so there is little cost to the employer. The Lincoln CareCompass SM category is the foundation of the plan. It is a group of benefits and services to help employees stay well and provide them with guidance through their treatment process if diagnosed with a critical illness. This category includes a benefit for an annual wellness assessment as well as a benefit to assist with child care if the employee is hospitalized with a covered critical illness/event. Also included are health advocacy, travel assistance, and support services, some of which are available even without a critical illness/event. Categories of coverage available: Heart heart attack, stroke, heart transplant, arteriosclerosis, aneurysm Cancer invasive cancer, cancer in situ, benign brain tumor, bone marrow depression Organ major organ transplant (except heart), end-stage renal failure, acute respiratory distress syndrome Quality of Life ALS/Lou Gehrig's disease; advanced Alzheimer's; advanced multiple sclerosis (MS); Parkinson's disease; loss of sight, speech or hearing Child Nine genetic disorders, six congenital metabolic disorders, Type 1 diabetes, 15 structural congenital defects Coverage is available in each of these categories for employees, spouses and dependent children. Child category available to children only. Critical Illness Cost Summary Option description: All Active Full-time Employees. Final rates are subject to Lincoln Financial Group approval Monthly premium per benefit amount for Employee Issue Age $5,000 $10, $3.17 $ $5.57 $ $10.50 $ $18.45 $ $28.91 $ Page 7

8 Monthly premium per benefit amount for Spouse Issue Age $5, $ $ $ $ $28.91 Monthly premium per benefit amount for all Child Dependents Issue Age $5, $ $ $ $ $1.29 *Child rates based on employee s issue age For more information, please visit or call the Small Business Association of Michigan at (800) Page 8

9 The necessary enrollment paperwork for enrolling a new SBAM / Lincoln Financial Group includes the following: Life and Disability: 1. SBAM Membership Application with first year dues payment or proof of membership in good standing. 2. Lincoln Group Application / Agreement 3. Lincoln Employee application for each participant 4. First month Lincoln premium check made payable to The SBAM Plan Accident / Critical Illness: 1. SBAM Membership Application with first year dues payment or proof of membership in good standing. 2. SBAM Accident / Critical Illness Company Enrollment Form 3. Once the company enrollment form is submitted to SBAM, a representative from our enrollment service company, EOI, will contact the member company for the next steps of implementation for the accident and critical illness enrollment at the employee level. Please call the Small Business Association of Michigan at (800) or visit for additional information Page 9