Ameriprise Financial Life Insurance Plan 2018 Summary Plan Description

Transcription

1 Ameriprise Financial Life Insurance Plan 2018 Summary Plan Description 2018 Ameriprise Financial, Inc. All rights reserved D (2/18)

2 Table of contents Participation... 3 Cost and coverage... 3 Waiving coverage... 3 Supplemental life insurance... 4 Spouse life insurance... 5 Child(ren) life insurance... 5 Accelerated Benefit Option... 6 Receiving benefits... 6 If benefits are denied... 7 If you become Totally Disabled... 7 Accidental Death & Dismemberment (AD&D) coverage... 7 Additional benefits... 8 What is not covered Naming a beneficiary How payment is made Assigning life insurance benefits Filing a claim If you retire Conversion of coverage Portability Continuation of coverage residents of Minnesota Disclaimer Glossary Appendix A: Definition of covered compensation for advisors and field leaders Appendix B: Definition of covered compensation for Wholesalers... 17

3 To give you and your family greater security for the unexpected, Ameriprise Financial provides you with basic life insurance of one times your Covered Compensation at no cost. The Life Insurance Plan (the Plan ) also offers you the opportunity to purchase: Supplemental life insurance protection for yourself and your eligible dependents Accidental Death & Dismemberment (AD&D) coverage Participation Eligibility, enrollment, when coverage begins and when coverage ends are outlined in the Health and Wellness Benefits Plans Administration and Participation Summary Plan Description. Cost and coverage Basic life insurance is automatically provided at no cost to you in the amount of one times your Covered Compensation with a maximum of $1 million. You may also purchase supplemental employee life insurance and Accidental Death & Dismemberment (AD&D) coverage for yourself. Your contributions for coverage will be made on a before-tax basis and will be based on the coverage amount you elect and your age. For the purposes of the Life Insurance Plan, the "compensation of regular full-time and part-time employees including corporate office staff is defined as Covered Compensation (i.e. base salary). Covered Compensation does not include overtime, bonuses, shift differentials or any other compensation elements except for certain positions within Ameriprise Financial, Inc. Field Leaders and Ameriprise Financial Services, Inc. advisors should refer to Appendix A and Wholesalers should refer to Appendix B herein which details what pieces of variable compensation above level income (Covered Compensation) are included in determining benefits under the various plans. If you elect to cover your spouse and/or eligible dependent children, your contributions for coverage will be made on an after-tax basis. Contributions for spouse coverage will be based on the amount of coverage you elected and your spouse s age. Contributions for coverage for your child(ren) will be based on the amount of coverage you elect. For additional cost information, see the section Paying for Coverage in the Health and Wellness Benefits Plans Administration and Participation Summary Plan Description. Imputed Income Imputed Income is the taxable cost of your company-provided basic life insurance coverage over $50,000. The cost is determined by a set of age-related rates, established by the Internal Revenue Service (IRS). The imputed income is added to your paycheck as taxable earnings, as well as to your W-2 earnings at the end of the year. You must pay income taxes and Social Security (FICA) taxes on your Imputed Income amount. Waiving coverage You may elect to waive your company-provided basic life insurance coverage. However, if you elect to waive your coverage you would be required to complete and submit the Supplemental Enrollment form to MetLife for approval before being allowed to enroll in the Plan at a future date. 3

4 Supplemental life insurance You may elect supplemental life insurance coverage of up to eight times your Covered Compensation, to a maximum of $2 million. As a new hire you can elect up to four times your Covered Compensation without going through the MetLife Proof of Good Health process. Employee life insurance coverage amounts are rounded to the next higher thousand, as shown below. Assume your Covered Compensation is $27,260, and you chose employee life insurance coverage of two times your Covered Compensation. Covered Compensation: $27,260 Coverage amount chosen: x 2 $54,520 Rounded amount of coverage = $55,000 (Two times Covered Compensation rounded to the next higher $1,000.) Things to consider when electing life insurance coverage When you're trying to decide the amount of life insurance to elect, think about your current financial status, responsibilities and future goals, and consider the following questions: Do you have debt (such as college loans or credit card balances) that would need to be paid if you died? Do you share responsibility for your personal debt with anyone else, such as your spouse/domestic partner or your parents? Do you have any dependents that rely on you for financial support and would need support if you died? Do you plan to help your children pay for their education? Do you have a mortgage to pay? Do you have any additional savings or benefits from other insurance plans that would help support your dependents? MetLife has a life insurance calculator designed to assist you in determining how much coverage to elect. It is available at: Electing coverage When you first become eligible, you will automatically be enrolled in basic life and can elect supplemental life of four times your Covered Compensation without providing Proof of Good Health. For coverage amounts over these limits, you must complete the Statement of Health form for MetLife s approval. Providing Proof of Good Health Generally, providing Proof of Good Health is satisfied by completing a medical questionnaire. This questionnaire is available on Inside > Resources > Policies > HR Policies and Forms A-Z (U.S.) > Forms > MetLife Statement of Health. You must forward the completed questionnaire to MetLife within 30 days for review. Any coverage above the guaranteed amount will not begin until MetLife approves the coverage. In some situations, a physical exam may be required. Increasing or decreasing coverage You may increase or decrease your coverage each year during open enrollment or if you experience a qualified event as defined in the Health and Wellness Benefits Plans Administration and Participation Summary Plan Description. If you elect to increase your coverage, you will be required to provide Proof of Good Health before 4

5 increased coverage begins. If Proof of Good Health is not approved, you will retain your previous option. Your coverage amount and the contributions related to it will be automatically adjusted to reflect any compensation changes on an annual basis for variable compensation or as it occurs for any Covered Compensation, approved coverage changes requested by you or cost increases due to age. Spouse life insurance You may elect life insurance coverage for your spouse in an amount equal to one to six times your Covered Compensation (rounded to the next higher $1,000), up to a maximum coverage of $200,000. If you and your spouse are both company employees, the total amount of life insurance in your name (employee life insurance, including company-provided coverage, and spouse life insurance coverage) cannot exceed $3.2 million. You must elect employee life insurance coverage of at least one times your Covered Compensation if you want to elect coverage for your spouse. Amount of coverage You have the option to elect life insurance coverage for your spouse as follows: No coverage 1 times employee s Covered Compensation 2 times employee s Covered Compensation 3 times employee s Covered Compensation 4 times employee s Covered Compensation 5 times employee s Covered Compensation 6 times employee s Covered Compensation Electing coverage When you first become eligible, you can elect coverage for your spouse equal to the lesser of two times your Covered Compensation or $30,000 without providing Proof of Good Health. If you decide to increase or newly elect your spouse s life insurance coverage during open enrollment or with certain qualified events, you will be required to provide Proof of Good Health for your spouse before the coverage increase will go into effect. If your spouse s Proof of Good Health is not approved, your spouse will retain his or her previous coverage level. Your spouse s coverage amount and the cost related to it will be automatically adjusted to reflect any compensation changes on an annual basis for variable compensation or as it occurs for any Covered Compensation, approved coverage changes requested by you or cost increases due to age. Residents of Texas For residents of Texas, the state currently has a limitation placed on the amount of dependent group life available to spouse and children, which is the same as that for which the employee is covered. For Texas employees, employer-provided group life insurance coverage from all sources cannot exceed $250,000 or seven times the employee's compensation, whichever is higher, regardless of the state in which the group coverage is issued. The same overall limitation applies to dependent coverage and to policies delivered, issued for delivery, or renewed on or after January 1, Child(ren) life insurance You may elect life insurance in the amount of $5,000 or $10,000 for each covered child older than 14 days. When each child reaches age 26, his or her coverage will end. Child life insurance coverage can be extended beyond age 26 if the child was disabled before the age limit. Conversion privileges are not available. 5

6 You must elect employee life insurance coverage of at least one times your Covered Compensation if you want to elect coverage for your child(ren). Amount of Coverage You have the option to elect child(ren) life insurance as follows: No coverage $5,000 per child $10,000 per child Accelerated Benefit Option If, while covered under the Plan, you become Terminally Ill, you may request that MetLife pay an Accelerated Benefit Option (ABO). The minimum ABO payout is $5,000. You will be considered Terminally Ill if: Your life span is drastically limited You are expected to die within 6 months You are not expected to recover Your request for an ABO must state the amount of the benefit requested. You may request an amount up to the maximum ABO percentage, which is 50% (up to $250,000) of the amount of employee and/or spouse life insurance coverage in effect. In no event may the amount be less than $10,000 in order to request an ABO. You may request an ABO at any time by completing and submitting a Request for ABO Form to MetLife. You can obtain this form by contacting HR Services. The request must include the statement of a currently licensed U.S. physician that you are Terminally Ill. The physician's statement must include: All medical test results Laboratory reports Any other information on which the statement is based, including the generally accepted prognostic protocol used by the physician to determine your expected remaining life span; and MetLife must accept the physician's statement In considering your request for an ABO, MetLife may require you, at MetLife's expense, to submit to an Independent Medical Examination by a physician chosen by MetLife. MetLife may suspend its review of a request for an ABO until the exam has been completed and the results submitted to MetLife. You may request an ABO only once while covered under the Plan. Receiving benefits Upon approval by MetLife, the amount of the ABO will be paid to you in a lump sum. To the extent allowed by law: Any ABO paid to you may be exempt from any legal or equitable process for your debt You will not be required to request an ABO in order to satisfy claims of creditors If you are not the owner of the life insurance coverage by assignment or otherwise, an ABO will not be available. The amount of ABO that will be payable is equal to the lesser of: The amount of ABO you requested or 6

7 The amount of employee and/or spouse life insurance that would have been in effect as of the date of your request, multiplied by the same percentage that you selected above when you made the request (e.g., you may choose an ABO benefit of 25% rather than the full 50%) After your request for an ABO has been approved, the amount of employee and/or spouse life insurance coverage in effect will be reduced by the amount of the ABO. You are entitled to convert the remaining amount of employee and/or spouse life insurance to an individual policy. If benefits are denied MetLife may refuse your request for an ABO if: Prior to MetLife's receipt of approval of the request, the group contract ends for your employee group (even though all or part of your employee life insurance coverage continues for any reason), or the entire amount of your employee life insurance ends under the group contract for any reason Prior to payment of the ABO, you die You do not meet the requirements for receiving an ABO You have assigned your life insurance benefits MetLife has been notified that all or a portion of your life insurance benefits are to be paid to your former spouse as part of a divorce agreement You meet the requirements as a result of: o Attempted suicide - Injuring yourself on purpose - Alcohol or drug abuse - A war, or warlike action in time of peace - Any event occurring while you are in violation of criminal law If you become Totally Disabled If you become Totally Disabled on or after January 1, 2017, you will no longer have your life insurance contributions waived. In addition, your group life coverage will end on your termination date at which time you may elect to continue your coverage through an individual policy with MetLife at your own expense. Accidental Death & Dismemberment (AD&D) coverage You can purchase Accidental Death & Dismemberment (AD&D) coverage equal to the life insurance coverage elected for you and/or your spouse. AD&D coverage is not available by itself, nor is it available for children. If you elect AD&D coverage for yourself and/or your spouse, the beneficiary would receive both the full amount of the life insurance benefit and the AD&D benefit in the event of death as the direct result of accidental injury, provided that death occurs not more than 1 year after the date of the accident. AD&D coverage may continue for you and your spouse as long as you remain employed by the company. You cannot convert your AD&D coverage to an individual policy after you leave the company or retire. How much the Plan pays You will be covered for accidents occurring in the course of business or pleasure, at home or on the job, traveling to and from work, 24 hours a day. Coverage while you are on a flight as a passenger in any aircraft licensed to carry passengers is included. 7

8 If, within three months following an accident, you lose, as a direct result of the injury: Life Speech and hearing Any combination of a hand, a foot or sight in an eye Quadriplegia You will receive the full amount of your life insurance benefits. If, within three months following an accident, you lose, as a direct result of the injury: A hand, at or above the wrist joint A foot, at or above the ankle joint An eye, involving irrecoverable and complete loss of sight in the eye Speech or hearing in both ears Paraplegia Hemiplegia You will receive one half of your life insurance benefit. If, within three months following an accident, you lose, as a direct result of the injury: Thumb and index finger of same hand You will receive one quarter of your life insurance benefit. However, you cannot receive more than your full life insurance benefit for all losses which result from one accident. Additional benefits Seat Belt benefit MetLife will pay an amount equal to 10% of the full amount of your AD&D coverage for the loss of a covered person's life that results from injuries sustained while driving or riding in a private Passenger Car if the covered person's Seat Belt was properly fastened. The amount payable will not: (a) exceed $25,000; or (b) be less than $1,000. The correct position of the Seat Belt must be certified by the investigating officer. A copy of the police report must be submitted with the claim. MetLife will not pay a Seat Belt benefit if the covered person was driving while under the influence of alcohol or drugs. Hospital benefit If, as a result of an accident, a covered person is confined in a hospital, MetLife will pay during such confinement, after a four day waiting period, a monthly amount equal to 1% of the full amount of your AD&D coverage, but not more than $2,500 per month. In no case will such benefit be payable for: The first four days of a hospital confinement More than 12 months during a period of hospital confinement Payments for periods less than a full month will be made on a pro-rata basis. 8

9 Training benefit for a dependent spouse If you die as a result of an accident while your dependent spouse is enrolled in an accredited school for the purpose of training or refreshing skills needed for employment, MetLife will pay the actual cost incurred for enrolling for one year in such school, up to a maximum of $5,000. Training benefit for a dependent spouse will be paid to your dependent spouse. Education benefit for dependent children If you die as a result of an accident, MetLife will pay on account of each dependent child an annual amount equal to 2% of the full amount of your AD&D coverage, but not more than $5,000 per year, if such child, on the date of the accident, was: Enrolled as a full-time student in a college, university or vocational school above the 12 th grade level At the 12 th grade level and subsequently enrolls as a full-time student in a college, university or vocational school within 365 days following the date of the accident The education benefit for dependent children is payable for a maximum of four consecutive years as long as the dependent child remains a full-time student. If there are no dependent children who qualify for the education benefit for dependent children on the date of your death, MetLife will pay an additional benefit of $1,000 to your beneficiary. Education benefit for dependent children will be paid to each dependent child. Child Care Center benefit If you die as a result of an accident, MetLife will pay on account of each dependent child who: Is 12 years of age or under on the date of the accident; and Was enrolled in a Child Care Center on the date of the accident; an annual amount equal to the lesser of: - 3% of the full amount of your AD&D coverage; and - The actual amount of Child Care Center benefit costs incurred; however, in no event will such amount be more than $5,000 per year The Child Care Center benefit is payable for a maximum of four consecutive years as long as the dependent child remains: Enrolled in a Child Care Center 12 years of age or under. If there are no dependent children who qualify for the Child Care Center benefit on the date of your death, MetLife will pay an additional benefit of $1,000 to your beneficiary. Child Care Center benefits will be paid to any person or persons who have incurred Child Care Center expenses on account of the dependent child. The Child Care Center benefit will be payable on a quarterly basis, with the first quarter beginning on the first day of the month following the date of your death, and with the first benefit being payable at the end of the first quarter. 9

10 What is not covered AD&D benefits will not be paid if death or injury results from one of the following: Physical or mental illness, diagnosis of or treatment for the illness An infection, unless it is caused by an external wound that can be seen and which was sustained in an accident Suicide or attempted suicide Injuring oneself on purpose The use of any drug or medicine voluntarily taken, unless used on the advice of a Doctor A war, or a warlike action in time of peace Committing or trying to commit a felonious assault or other felony Any poison or gas, voluntarily taken, administered or absorbed Service in the armed forces of any country or international authority, except the United States National Guard Operating, learning to operate, or serving as a member of a crew of an aircraft; or while in any aircraft operated by or under any military authority (other than the Military Airlift Command); or while in any aircraft being used for the test or experimental purposes; or while in any aircraft used or designed for use beyond the earth s atmosphere; or while in any aircraft for the purposes of descent from such aircraft while in flight (except for self-preservation) Driving a vehicle while intoxicated as defined by the laws of the jurisdiction in which the vehicle was being operated Naming a beneficiary You will be asked to name a beneficiary for your employee life insurance coverage under the Life Insurance Plan (you are automatically the beneficiary for spouse life insurance and child(ren) life insurance). Your beneficiary is the person you have designated to receive the proceeds of your insurance in the event of your death. If you want to change your beneficiary designation, you must follow the instructions described below. You may name any person(s) you desire as beneficiary of your employee life insurance coverage by completing a Beneficiary Designation Form. The Beneficiary Designation Form provides options for electing more than one primary beneficiary, as well as options for electing contingent beneficiaries. You may change your beneficiary at any time by completing and properly filing a new Beneficiary Designation Form, unless you have previously made an irrevocable designation. To request a Beneficiary Designation Form, contact the HR Service Center at The form is also available at Inside > Resources > Policies > HR Policies and Forms A-Z (U.S.) > Forms > MetLife Beneficiary. If you do not name a beneficiary If you have not designated a beneficiary under the Plan, or if no beneficiary survives you, benefits will be paid in the following order: Spouse Child(ren) Parents Siblings Estate of the deceased 10

11 If you do not name a beneficiary when you first enroll or if the person you designate dies before receiving the full amount of benefits payable, any remaining benefits will then be paid to your next eligible beneficiary, if applicable. Payment will then be made to your estate if you have no additional eligible beneficiaries. How payment is made Generally, employee life insurance benefits are paid to your beneficiary in a money market account regardless of the cause of death. Spouse life insurance and child(ren) life insurance benefits, as well as dismemberment benefits under the Plans, must be payable to you. If the beneficiary of your coverage is a minor, benefits will be paid to the legal guardian for the benefit of the minor. In the event of your death or your dependent's death, and upon receipt of a certified copy of the death certificate by MetLife, the amount of life insurance coverage in effect on the date of death will be paid to your beneficiary by one of the following methods: Lump sum If the value of the life insurance is less than $5,000, the beneficiary receives the policy proceeds in one lump sum; or Money market account At the time of claim submission, beneficiaries may elect to receive proceeds in a check or, for benefits amounts of $5,000 and above, they may elect to receive proceeds via a MetLife Total Control Account. The money market account allows the beneficiary immediate access to the proceeds via free, personalized checking, while the money earns interest at a rate that is competitive in the financial market. Assigning life insurance benefits If an assignment of life insurance benefits is made, neither the company nor MetLife assumes responsibility of any kind or degree for the validity, sufficiency or effect of this assignment. You are strongly urged to discuss this with your personal legal, tax and financial advisors before assigning life insurance benefits. Once you have assigned your life insurance benefits, you give up all ownership rights to the assignee including conversion, portability, accelerated benefit option, beneficiary changes and the right to increase or decrease your supplemental life amount. Filing a claim To claim employee life insurance, spouse life insurance or child(ren) life insurance benefits, MetLife must be given written notice of your death or your dependent's death. This notice must contain information sufficient to identify the person for whom a claim is being submitted and must include a certified copy of the death certificate. To claim employee AD&D or spouse AD&D benefits, MetLife must receive written notice of the accidental death or dismemberment within 20 days after the date of the occurrence. Written proof of the claim must be given to MetLife no later than 90 days after the date of the loss. This proof must contain information sufficient to identify the person for whom a claim is being submitted and must include a certified copy of the death certificate or proof of the dismemberment. For more information on filing a claim and instructions on filing an appeal, see the section Claiming Benefits in the Health and Wellness Benefits Plans Administration and Participation Summary Plan Description. 11

12 If you retire You may convert your basic employee life insurance coverage in the amount of one times your Covered Compensation to an individual policy through MetLife at your own expense. In addition, you may continue the life insurance coverage you had in excess of one times your Covered Compensation, as well as any spouse life insurance coverage, if applicable, through MetLife s portability option also at your own expense (See section Conversion of coverage.) For American Express Financial Corporation (AEFC) employees who retired prior to April 1, 1990, the following is the reduction schedule applicable to your life insurance coverage: If you are under age 70, the percentage of your original life insurance amount remaining today is 30%. If you are age 70 but less than age 75, the percentage of your original life insurance amount remaining today is 20%. If you are age 75 or older, the percentage of your original life insurance amount remaining today is 10%. The value of your life insurance during retirement will not be less than $1,000. Members of the AEFC field organization who left American Express Company at or after age 55 with at least 10 years of service on or before March 22, 2000, receive life insurance coverage of $10,000 at no cost. This coverage does not extend to eligible members of the American Express Financial Advisors (AEFA) field organization who left American Express Company as of March 22, 2000, and failed to elect continuation life insurance coverage. Conversion of coverage If your coverage ends, in most cases you can apply for an individual policy under the conversion privilege within 31 days after your life insurance coverage or any continuation period ends, or 31 days from the date on your life insurance conversion worksheet, whichever is later. After you terminate for any reason, MetLife will mail you the life insurance conversion worksheet application and instructions. If you die during this 31 days and before the individual policy goes into effect, the amount payable under the group contract is limited to the maximum that could have been converted. This limit applies even if you have not applied for or paid the first premium on the individual policy. In order to convert, you must file a written application for an individual policy with MetLife and pay the first premium to MetLife within 31 days after group coverage ends, or: For New York, 45 days from the date notice is given if more than 15 days but less than 90 days after the date benefits terminated. For all other states, 15 days from the date notice is given if more than 15 days but less than 90 days after the date benefits terminated. In no event will this period extend beyond 91 days from the date benefits were terminated. No Proof of Good Health will be required. Spouse and child life insurance coverage may be converted to an individual policy; however, you cannot convert AD&D. The individual policy will become effective at the end of the 31-day period during which conversion is possible. The premiums due under the personal policy will be based on your age (nearest birthday) at that date. The premiums for the converted policy will be at MetLife's then customary rates for the same policy issued to any 12

13 other person of the same class of risk and age at the time the converted policy is to become effective. After an individual policy becomes effective, that policy will replace all benefits and privileges provided previously under the discontinued group life insurance coverage. If life insurance ends because coverage is discontinued for your employee group, you may convert life insurance coverage to an individual policy. To do so, your life insurance coverage must have been in effect for five consecutive years prior to the discontinuation date. If you convert, the amount of the coverage you had will be reduced by any group insurance amount for which you become eligible within 31 days of the discontinuation date. The maximum amount that can be converted is $2,000. Conversion of coverage after a divorce, legal separation, or annulment If you and your spouse get a divorce, legal separation or annulment, your spouse life insurance coverage will end. Conversion privileges are available, provided the paperwork is complete and the required premium payment is made within 31 days of the date on which your spouse's coverage would otherwise end. Portability Employees with supplemental life insurance benefits who, at the time make a request to continue supplemental life insurance benefits, are allowed to continue certain supplemental life insurance benefits even though: 1. Your employment with Ameriprise Financial has ended due to: Voluntary termination of employment Retirement Dismissal 2. Your employment classification has been changed such that you are no longer eligible for supplemental life insurance benefits under this Plan. The above is subject to the following conditions: Ameriprise Financial has not terminated or given MetLife notice of termination of the Plan. You make a written request to MetLife to continue such supplemental life insurance benefits. The request and the first payment for the cost of your continued supplemental life benefits must be received by MetLife during the enrollment period. The enrollment period is the 31-day period after the date your supplemental life insurance benefits end because of 1 or 2 above. If you are not given notice, in writing, of such right to continue such supplemental life insurance benefits within 15 days before or after the first day of the enrollment period, you will have additional time in which to make the request. If such notice is given more than 15 days but less than 90 days after first day of the enrollment period, you will then have 45 days from the date you are given the notice in which to apply. If such notice is not given within 90 days after the first day of the enrollment period, the time in which you may exercise this right will expire at the end of such 90 days. You may be entitled to apply for a personal policy of life insurance on your own life. If you make a written request and are issued a personal policy, you may not make a request to continue your supplemental life insurance benefits. Such supplemental life insurance benefits will be continued under a portability pool established under Group Policy No G issued by MetLife to The Chase Manhattan Bank, N.A., Trustee. Your coverage under the pool will automatically include an ABO. It will not include a provision to continue your death benefits during total disability. Your coverage in the pool will become effective on the day following the 13

14 end of the enrollment period. If you die during the enrollment period, MetLife will pay a death benefit to your beneficiary. The amount of the death benefit will be the amount of supplemental life insurance benefits, which you could have continued. This death benefit will be payable even if you did not make a request to continue such supplemental life insurance benefits. MetLife will, however, pay only one death benefit either under this provision or under the conversion of coverage right. The amount you may continue is the amount indicated on your written request. This amount cannot be more than the lesser of (i) the amount of supplemental life insurance benefits in effect on your account on the date your supplemental life insurance benefits would otherwise end because your employment ends or your class is changed or (ii) $2 million. You pay the full cost for the continued supplemental life insurance benefits directly to MetLife. Payments, other than the first, are due on the first day of each calendar month. MetLife will send you a payment notice. A grace period of 31 days will be allowed for each payment. If you do not make the full payment within the grace period, your continued supplemental life insurance benefits will end; they will end on the last day of the grace period. Your continued supplemental life insurance benefits may not be reinstated. The payment you make for the continued supplemental life insurance benefits will change each year as a result of your advancing age. Such change in your payments will take effect on January 1 of each year. In addition, a review of the financial experience of the portability pool will be made by MetLife annually. The payments you make may change after MetLife s review of the experience of the pool. MetLife will provide you with notice of any change in your payment no later than 31 days immediately preceding the effective date of the change. Continuation of coverage residents of Minnesota If you reside in Minnesota and your employment terminates, you may elect to continue life insurance and AD&D coverage for your spouse and/or eligible dependent children, if you have elected to continue your employee coverage under the Life Insurance Plan. Coverage may continue to the earliest of the following dates: 18 months from your termination date The end of the period during which you last paid the required contribution when due The date your dependent is no longer eligible for coverage The date you and your dependents become covered under another group life insurance plan The date the company terminates dependent life insurance coverage The date your coverage as an employee or covered dependent under the Life Insurance Plan ends If you choose to continue coverage, contact the HR Service Center to request the application. You will be responsible for paying the full cost of coverage, plus a 2% administrative fee. Disclaimer This SPD contains only certain highlights of the Ameriprise Financial Life Insurance Plan. It does not supersede the actual provisions of the Plan Document (MetLife Group Benefits Plan Insurance Policy # G Certificate of Coverage) available upon request from the HR Service Center. If there is a discrepancy between this SPD and the Certificate of Coverage, the terms of the Certificate of Coverage will govern. Glossary Child Care Center A facility which is operated and licensed according to state law, and provides care and supervision for children in a group setting on a regular daily basis. 14

15 Doctor A person who is legally licensed to practice medicine. A licensed medical practitioner will be considered a doctor if applicable state law requires that such practitioners be recognized for the purposes of disability certification and the care and treatment provided by the practitioner is within the scope of his/her license. Independent Medical Examination A medical examination you may be required to undergo by a MetLife approved physician. MetLife will pay for the exam. Passenger Car Any validly registered four-wheel private passenger car. It does not include: Any commercially licensed car A private passenger car, which is being used for commercial purposes Proof of Good Health This is generally accomplished by satisfactorily completing a medical questionnaire. In some situations, a physical exam may be required. Seat Belt Any child restraint device which meets the definition of the state law; or any other restraint device which: Meets published federal safety standards Has been installed by the car manufacturer Has not been altered after such installation Terminally Ill A person is considered terminally ill if: He or she suffers from an incurable, progressive and medically recognized disease or condition To a reasonable medical probability and based on a generally accepted prognostic protocol, will not survive more than six months beyond the date of the request for an ABO Totally Disabled A disability caused by sickness, disease, injury, pregnancy, related mental impairment or corporate pilots unable to pass the Class I Federal Aviation Administration (FAA) health examination for which appropriate care and treatment is received and complying with the requirements of such treatment. During the first two years of Long Term Disability payments, because of sickness or injury, you are unable to perform any and every duty of your own occupation. Or, you are unable to perform all of the material duties of your own occupation on a full-time basis, but are performing at least one of the material duties of your own occupation or any other gainful work on a part-time or full-time basis. (In this situation, your earnings cannot exceed 80% of your earnings prior to disability. Your combined earnings, Long Term Disability and earnings from gainful employment may not exceed 100% of your pre-disability salary.) Thereafter, total disability means you cannot perform each of the material duties of any gainful work or service for which you are reasonably qualified, taking into consideration your training, education, experience and past earnings (except rehabilitative employment). 15

16 Appendix A: Definition of covered compensation for advisors and field leaders This chart summarizes how covered compensation is defined for the following health and wellness benefit programs: Life Insurance, Long Term Disability and Accidental Death and Dismemberment. During Open Enrollment, the Benefit System will reflect variable compensation for the current calendar year including coverage and costs. This information will be updated prior to the first payroll of the following year. New Hires If during the hiring process a trailing twelve (T-12) amount is provided, that will be used to assign what the covered compensation rate will be for benefit purposes. This will be used for the first two full years of employment and will not change except for adjustments made to base draw or salary. If no T-12 is provided during the hiring process covered compensation will be based only on base salary or annual draw. As annual base salary or draw changes throughout the year it will change your covered compensation for benefit purposes as well. See Annual Covered Compensation Updates for information on future adjustments new hire covered compensation assignment T-12 Covered compensation assignment Less than $100,000 $24,000 $100,000 but under $200,000 $67,500 $200,000 but under $300,000 $95,000 $300,000 but under $400,000 $140,000 $400,000 but under $500,000 $189,000 $500,000 but under $600,000 $242,000 $600,000 but under $700,000 $286,000 $700,000 but under $800,000 $330,000 $800,000 but under $900,000 $374,000 $900,000 but under $1mm $418,000 $1mm plus $462,000 Annual Covered Compensation Updates*: Field Leaders & Advisors with less than two years of service as of December 31, 2018: Field Advisors and Leaders will maintain their assigned new hire covered compensation assignment based on the T-12 schedule in place on their DOH or base salary whichever was used at hire until the first January in which they have 2 full calendar years of service. - As base salary or draw changes throughout the year covered compensation will be adjusted (increase/decreased) to reflect that change. Field Leaders & Advisors with two or more calendar years of service as of January 1, Covered compensation will be updated in January 2018 as follows: - Current calendar year base or draw if applicable plus your prior 2-year average variable compensation (paid in 2016 and 2017). Variable comp is only updated annually. - As base salary or draw changes throughout the year covered compensation will be adjusted (increase/decreased) to reflect that change. 16

17 Example: John Doe DOH May 5, 2015 January 1, 2017 he will have 2 years (2016, 2017) and 7 months (2015) of service Covered Comp = Current Base (draw) + Average of variable compensation Compensation typically included in yearend variable compensation updates: Current Annual Base Pay/Draw Commissions on Sales - Financial Plans - Products - Risk Management Bonus (for sales of life/disability products) Recruiting Bonus for Field Leaders meeting their office recruiting goals Annual Incentive Awards (AIA) Types typically not included: Speaker Bonus Training Bonus Recruiting Bonus given as part of hiring package Non Cash bonuses (stocks, deferrals) *Field Advisors or Leaders on an Unpaid Medical Leave will not have their annual covered compensation updated if on a leave in January. Appendix B: Definition of covered compensation for Wholesalers The chart below summarizes how covered compensation is defined for the following health and wellness benefit programs: Life Insurance, Long Term Disability and Accidental Death and Dismemberment. Covered compensation for purposes of calculating Life Insurance, Accidental Death and Dismemberment and Long Term Disability benefits will include base salary and average commission paid in the prior year. Average commission will be determined for certain employees by using an average commission amount for all employees assigned to the same unique job code. The employee must also be in one of the following incentive plans: Incentive Plan Code: 1 Incentive Plan Code: 7 Incentive Plan Code: 17 Incentive Plan Code: 21 Incentive Plan Code: 33 Incentive Plan Code: 34 Incentive Plan Code: 35 RiverSource Conservation Wealth Management RiverSource Distributors Experienced Advisor Recruiting Fixed Income Trading AM Institutional AM Intermediary 17

18 During Open Enrollment, the Benefit System will reflect your base salary and average commission compensation for the current calendar year including coverage and costs. The average commission amount will be updated each year in December. Any annual base salary changes throughout the year will change your covered compensation for benefit purposes as well. To determine if you meet the criteria for this definition of covered compensation please contact your HR Business Partner or contact the HR Service Center at