your ground crew. take care of Insurance Products Exclusively for ALPA Members ALPA Life Insurance Group Term Life 10-Year Level Term Life

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1 take care of your ground crew. Insurance Products Exclusively for ALPA Members Plan Year November 1, 2017 October 31, 2018 ALPA Life Insurance Group Term Life 10-Year Level Term Life 20-Year Level Term Life

2 ALPA Insurance Plans: By Pilots, for Pilots Exclusive Life Insurance Coverage For ALPA Members Get More Financial Security You always have safety in mind while flying. ALPA offers life insurance products designed to provide a safety net for your loved ones; those you love on the ground need protection, too. As a pilot, you may put off getting life insurance because of the sensitivity of taking a health exam. Or, you may think life insurance through your employer is enough. But when you total all the future needs of your dependents beyond final costs and expenses (think about college, mortgage, everyday living expenses), it can really add up. That s why ALPA offers a line of high quality, affordable life insurance products designed to meet your specific needs as an ALPA member. Plans to Fit Your Needs ALPA offers three term insurance products, which provide life insurance coverage for a specified period of time: Group Term Life: Purchase a set amount of life insurance coverage for an annual term, at a price based on your age (the plan uses 5-year age bands). This type of plan is often called an Annual Renewable Term plan because the coverage renews each year and you can make changes based on your needs. This provides you flexibility, but prices increase as you age. 10-Year Level Term Life: Purchase a set amount of life insurance for a 10-year period at a rate that is guaranteed to remain level, even if your health changes. Many people choose a Level Term coverage to help cover specific financial responsibilities, such as a mortgage, college expenses, or other debts and expenses. You may also consider a Level Term plan to protect a growing family or your wages during prime earning years or to maintain protection as you approach retirement. 2

3 ALPA Life Insurance 20-Year Level Term Life: Purchase a set amount of life insurance for a 20-year period at a rate that is guaranteed to remain level, even if your health changes. Just like the 10-Year Level Term plan, it can be used to cover specific responsibilities and needs or as a long-term planning, investment, and budgeting tool. A Steady Course with Guardian Guardian is dedicated to helping customers provide the right group benefits by offering innovative plan designs, leading technology platforms, and more effective ways to engage employees. Guardian s expert ability to deliver high-quality customer solutions is backed by over 150 years in the insurance industry, a strong mutual foundation, and exemplary financial ratings. Today, Guardian serves over 123,000 groups and over 6.5 million members. From identifying needs to ongoing service, customers of all sizes rely on Guardian s comprehensive approach to meeting their benefits needs. Financial information concerning The Guardian Life Insurance Company of America as of as of December 31, 2016 on a statutory basis: Admitted Assets = $51.9 Billion; Liabilities = $45.7 Billion (including $39.4 Billion of Reserves); and Surplus = $6.2 Billion. Source: VitalSigns. Now s The Time Act Now There s never been a better time to increase your coverage. Life insurance is not only a tool to help protect loved ones; it can also be a sound financial investment and planning vehicle. Guardian Group Term Life Insurance is underwritten by The Guardian Life Insurance Company of America, New York, N.Y. Product may not be available in all states. Policy limitations and exclusions apply. Optional riders and/or features may incur additional costs. Plan documents are the final arbiter of coverage. 3

4 ALPA Insurance Plans: By Pilots, for Pilots Life Insurance Overview 4 Coverage Amounts Available Guaranteed Coverage* Member only coverage for Group Term Life Coverage Maximum Coverage Decreases Living Benefit Option Accelerated Life Benefit Member Spouse (Amount cannot exceed Member s) Child(ren) Group Term Up to $1,500,000 in $50,000 units Up to $1,500,000 in $50,000 units $5,000 or $10,000 for each child The amount you choose will apply to each eligible child. 10-Year Level Term $250,000 to $1,500,000 in $50,000 units $250,000 to $1,500,000 in $50,000 units 20-Year Level Term $250,000 to $1,500,000 in $50,000 units $250,000 to $1,500,000 in $50,000 units Coverage not available, but you can purchase coverage for your child with the Group Term Life plan as long as you have coverage in one of the three life plans offered by ALPA. Any eligible member age 59 or younger can purchase Group Term Life Insurance and get guaranteed coverage for: Up to $500,000 for eligible members under age 40 N/A Up to $300,000 for eligible members under age 50 Up to $200,000 for eligible members under age 60 See page 6 for qualification details. $1,500,000 per covered member or spouse for all plans combined (you can purchase more than one plan but cannot exceed $1.5 million). Coverage begins to decrease starting when you have (1) reached age 65 and (2) are retired, as shown in the schedule titled Amounts of Insurance after Age 64. Please see page 8. Child coverage does not decrease. Coverage does not decrease If you or your covered spouse has a terminal condition, you may apply for an Accelerated Life Benefit. This benefit provides a payment before death, which can be used in any way you choose. If you qualify for an Accelerated Life Benefit, the amount you receive is based on the amount of coverage you have on the day before you apply for the benefit. The maximum benefit you can receive is the lesser of $100,000 or 50% of your Group Term Life coverage amount, with a minimum benefit of $10,000. Note: The gross Accelerated Life Benefit paid to you will be subtracted from your Group Term Life coverage amount and will permanently reduce your Group Term Life coverage amount. The price you pay will continue to be based on your original coverage amount. Rates/Cost See page 8 See page 10 See page 16

5 ALPA Life Insurance Life Insurance Plans Exclusively for ALPA Members Eligibility Who Can Apply? You are an Eligible Member and may apply for coverage if you are in one of the following membership classes: Apprentice Member Executive Member Reactivated Member Active Member Furloughed Grievance Pending Inactive Participant For 10-Year and 20-Year Level Term Plans: You are an Eligible Member and may apply for 10-year Level Term coverage if you are under age 65. For the Group 20-Year Level Term plan, you must be under age 55. If you are an Eligible Member, you may also apply for coverage for your Eligible Dependents: Your (a) lawful spouse (under the maximum eligibility age 65 for the 10-year plan, 55 for the 20-year plan) or (b) Unmarried dependent children ages 14 days through 20 years (22 years if a full-time student). You can purchase Dependent Child coverage through the Group Term Life plan. If your spouse and/or dependent child(ren) are also eligible ALPA members, they cannot be covered as dependents. If both parents are ALPA members, only one parent may apply for insurance for any eligible child(ren). You must have coverage through the plan for yourself in order to cover dependents you cannot have coverage for your dependents only. Guaranteed Coverage for Group Term Life Any eligible member age 59 or younger who purchases Group Term Life Insurance can get guaranteed coverage for: Up to $500,000 for eligible members under age 40 Up to $300,000 for eligible members under age 50 Up to $200,000 for eligible members under age 60 5

6 ALPA Insurance Plans: By Pilots, for Pilots To qualify for guaranteed coverage you must meet the following criteria: Be a member in good standing and employed by an ALPA member airline, Hold a valid FAA medical certification to fly with no special issuance or SODA, Confirm, at time of enrollment, that you have not previously been denied participation in an ALPA group life plan, and Confirm, at time of enrollment, that your health status has not changed since your last FAA physical exam. Conditional-Issue Dependent Spouse Coverage: You can qualify for $50,000 of guaranteed coverage if you are under age 60 and affirm at time of application that in the last 6 months you have not received medical care, including treatment, consultation, services, diagnostic measures, or monitoring of a condition in remission; or taken prescribed drugs for: cancer, heart disease, any condition related to AIDS or AIDS related complex, or any other chronic condition. Don t qualify for Guaranteed Issue or desire greater coverage? You may qualify for up to $1.5 million in coverage by completing the application and submitting to a medical exam. Group Term Life Coverage for Newly Hired Pilots If you are a first-time Apprentice Member, you must opt in to the Group Term Life plan at the $50,000 benefit level. This coverage is provided at no cost to the member during the first 12 months of employment. Additional coverage can be purchased up to the Guaranteed Issue amounts. Need more than the guaranteed amounts? You can apply for coverage up to $1.5 million (subject to medical underwriting). Act early for discounts: If additional coverage is purchased during the first 12 months of new-hire status, premiums will be discounted 6

7 ALPA Life Insurance by 75%. Additional coverage purchased or maintained during months from date of hire, premiums will be discounted by 50%. Any coverage purchased or maintained after 25 months will be billed at full cost. If you are a Reactivated Member and apply for coverage under this plan, you will receive a 75% premium discount for the first 12 months of your membership date and a 50% premium discount for months Any coverage purchased or maintained after 25+ months will be billed at full cost. First-Time Apprentice Active Member Benefit $50,000 at no cost to you 50,000 paid by you Discounts Purchase Options Additional coverage purchased during new-hire/rehire period. 75% discount during first months, and 50% during the following months Guaranteed coverage up to: $500,000 for eligible members under age 40 $300,000 for eligible members under age 50 $200,000 for eligible members under age 60 Up to $1.5 million in coverage, subject to underwriting Group Term Life: Annual Premium Contributions for Member, Spouse, and Child(ren) The initial cost of insurance for you and your spouse is based upon the amount of insurance requested, usage of tobacco/nicotine products, and your attained age when insurance becomes effective. The cost increases as you grow older. Premium contributions are dependent upon the amounts chosen. 7

8 ALPA Insurance Plans: By Pilots, for Pilots Annual Rate per $50,000 Option Active Members/Spouses Active Member Age <30 $15.81 $ $20.91 $ $24.99 $ $31.62 $ $45.39 $ $74.97 $ $ $ $ $ Child Coverage: $5,000 per child cost is a flat $6 annually; $10,000 per child cost is a flat $12 annually. Cost for each option remains the same no matter how many eligible children are covered. Amounts of Insurance after Age 64 Life insurance amounts are based upon your age when coverage becomes effective, and decrease as you grow older. Benefits will be determined based on the member s pre-65 benefit amounts and current age. If death occurs when your age is: The amounts of insurance provided under your member and spouse options shall be reduced to: years The lesser of $100,000 or 65% of your pre-65 benefits years The lesser of $61,538 or 40% of your pre-65 benefit years The lesser of $38,462 or 25% of your pre-65 benefit 80+ The lesser of $23,077 or 15% of your pre-65 benefit Note: These reductions will be effective on the November 1 on or next following the date you reach ages 65, 70, 75, and 80. The annual rates per $1,000 of benefits are: Age $12.43 $ $20.10 $ $37.39 $ $64.50 $ $ $ The $5,000 or $10,000 level of insurance for dependent children does not decrease. 8

9 ALPA Life Insurance Benefit option amounts are not guaranteed and are subject to change by agreement between ALPA and Guardian Life Insurance Company of America. Age reduction examples: The maximum amount considered for reduction schedule pre-65 is $153,846 (See Example #1 below) Age Example #1 Example #2 100% 64 $1,500,000 $60,000 Lesser of -35% or 100K 65 $100,000 $39,000-60% 70 $61,538 $24,000-75% 75 $38,462 $15,000-85% 80 $23,077 $9,000 Minimum benefit is $1, /20-Year Life: Annual Premium Contributions for Member and Spouse The cost of this life insurance is based upon the member and spouse s genders, amount of insurance requested, usage of tobacco/nicotine products, health status, and attained age on the date coverage is issued. Premium contributions will vary depending upon the options chosen. Only nonsmokers meeting the highest underwriting standards will qualify for Super- rates. Other nonsmokers may qualify for the higher or Standard rates. Upon approval of your application, you will be notified of the rate classification for each approved person. 9

10 ALPA Insurance Plans: By Pilots, for Pilots 10 Issue Age 10-Year Level Term Life Insurance: Face Amounts $250, ,000 Annual Rate per $50,000 of Face Amount Super- MALE

11 ALPA Life Insurance Issue Age 10-Year Level Term Life Insurance: Face Amounts $250, ,000 Annual Rate per $50,000 of Face Amount Super- FEMALE

12 ALPA Insurance Plans: By Pilots, for Pilots 12 Issue Age 10-Year Level Term Life Insurance: Face Amounts $500, ,000 Annual Rate per $50,000 of Face Amount Super- MALE

13 ALPA Life Insurance Issue Age 10-Year Level Term Life Insurance: Face Amounts $500, ,000 Annual Rate per $50,000 of Face Amount Super- FEMALE

14 ALPA Insurance Plans: By Pilots, for Pilots 14 Issue Age 10-Year Level Term Life Insurance: Face Amounts $1,000,000 1,500,000 Annual Rate per $50,000 of Face Amount Super- MALE

15 ALPA Life Insurance Issue Age 10-Year Level Term Life Insurance: Face Amounts $1,000,000 1,500,000 Annual Rate per $50,000 of Face Amount Super- FEMALE

16 ALPA Insurance Plans: By Pilots, for Pilots Issue Age 20-Year Level Term Life Insurance: Face Amounts $250, ,000 Annual Rate per $50,000 of Face Amount Super- MALE

17 ALPA Life Insurance Issue Age 20-Year Level Term Life Insurance: Face Amounts $250, ,000 Annual Rate per $50,000 of Face Amount Super- FEMALE

18 ALPA Insurance Plans: By Pilots, for Pilots Issue Age 20-Year Level Term Life Insurance: Face Amounts $500, ,000 Annual Rate per $50,000 of Face Amount Super- MALE

19 ALPA Life Insurance Issue Age 20-Year Level Term Life Insurance: Face Amounts $500, ,000 Annual Rate per $50,000 of Face Amount Super- FEMALE

20 ALPA Insurance Plans: By Pilots, for Pilots Issue Age 20-Year Level Term Life Insurance: Face Amounts $1,000,000 1,500,000 Annual Rate per $50,000 of Face Amount Super- MALE

21 ALPA Life Insurance Issue Age 20-Year Level Term Life Insurance: Face Amounts $1,000,000 1,500,000 Annual Rate per $50,000 of Face Amount Super- FEMALE

22 ALPA Insurance Plans: By Pilots, for Pilots Important Plan Information Effective Date You will become insured with respect to you and any eligible dependents whose evidence of insurability is satisfactory to Guardian Life on the first of the month on or next following the date of approval as specified by The Guardian Life Insurance Company of America, provided: (a) the premium contribution is paid within 31 days after the date billed; (b) you are actively at work or available for active work; and (c) any approved dependents are actively performing the normal activities of a person in good health of like age. If you are not at or available for active work as required, you will not become insured until the day you are at or available for active work. Dependent insurance will not take effect unless your insurance is in effect on a paying basis, and any dependent who is not performing his/her normal daily activities as required will not become a covered dependent until the day he/she is performing such activities, provided you are still insured and the dependent is still eligible. When Coverage Ends Your insurance continues (for you and your Eligible Dependents) as long as: you pay the required premium contributions when due, the policy is not modified to end insurance for your membership class, you remain an Eligible Member of ALPA, and the policy is not terminated by ALPA or Guardian. Coverage for your dependents will end when your coverage ends or when the dependent eligibility requirements are no longer being met. Beneficiary The beneficiary is the person last designated by you in writing and recorded as such by or on behalf of 22

23 ALPA Life Insurance Guardian. You are the automatic beneficiary for your covered dependents. If you wish to name a different beneficiary for spouse coverage, contact ALPA for the applicable form. Conversion Privilege The plan provides conversion privileges under certain circumstances of involuntary termination of coverage as described in the Certificate of Insurance. Incontestability The validity of any amount of your insurance that has been in force for two years during your lifetime will not be contested, except for insurance eligibility provisions or nonpayment of premium contributions. Exclusions Benefits are not payable for death due to suicide, while sane or insane, during the first two years of coverage. 10-Year and 20-Year Level Term Plans After the Initial 10- and 20-Year Periods Once coverage has been approved, your rate is guaranteed to remain level for a specified term: 10 years under the Group 10-Year Level Term plan or 20 years under the Group 20-Year Level Term plan. At the end of this term, an insurance member or spouse can apply for a new 10- or 20-year period, provided the insured person is under the maximum eligibility age (65 for the 10-year plan, 55 for the 20- year plan) and is otherwise still eligible. If coverage is approved, the insured person s premium will be based on his/her age and health status at the time new coverage becomes effective and will be guaranteed for a new 10- or 20-year period. If the insured is not approved for a subsequent term of guaranteed rates or chooses not to reapply, coverage will continue at nonguaranteed renewable rates (available upon request) that increase as the insured ages. Coverage can be renewed regardless of health. 23

24 ALPA Life Insurance Plans Administered by: Air Line Pilots Association, Int l 535 Herndon Parkway Herndon, VA Insurance@alpa.org Underwritten by: The Guardian Life Insurance Company of America 7 Hanover Square Customer Service, H-6-D New York, NY Main Number: This brochure contains only a brief description of the principal provisions under the Plan. The complete terms and conditions are set forth in the Group Policy issued by Guardian to the Trustee of the Air Line Pilots Association, Int l, Pilot Welfare Benefit Plan Trust. Please contact ALPA for more information. ALPA proudly offers products and services underwritten by The Guardian Life Insurance Company of America (Guardian) and is not a subsidiary or affiliate of Guardian.