2019 FAQs Life Insurance and Long-Term Disability plans. Frequently Asked Questions from employees

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1 2019 FAQs Life Insurance and Long-Term Disability plans Frequently Asked Questions from employees September 2018

2 Life and long-term disability plans Here are some commonly asked questions about the Life and Long-term disability plans that our employees have raised. To find a particular topic, click on the subject or category below to go directly to that section of the FAQ. About the Life and Accident plans Who s eligible Supplemental life insurance contributions General questions about Life and AD&D insurance Evidence of insurability Naming a beneficiary Long-term disability plan Important If there is ever a conflict in the information provided in this FAQ, the plan documents and summary plan descriptions will govern. In addition, participation in the benefits program does not constitute a right to continued employment with the Company. While it is the Company s intent to continue these programs, we reserve the right to amend or terminate any plan at any time, for any reason. 2

3 Life and Accident insurance and Long-term disability plans About the Life and Accident plans Q. What Life and Accident insurance benefit does Dover offer? You automatically receive Basic life and Accidental Death and Dismemberment (AD&D) Insurance, at no cost to you. You can also purchase Supplemental life insurance for yourself, spouse/partner and eligible dependents. The Hartford is the supplier that administers these plans. Basic life and AD&D insurance You automatically receive this coverage, at no cost to you. Supplemental life insurance You can purchase this coverage for yourself, your spouse/partner and eligible dependents. Q. What are my Basic life and Accidental Death and Dismemberment (AD&D) insurance coverages? All Dover Companies provide you with Basic life insurance that is equal to2 times your annual base salary* (rounded up to the nearest $1,000) to a maximum of $1 million. Your AD&D coverage is the same amount as your Basic Life insurance. You do not need to enroll for this coverage; it is automatic and Dover pays the full cost. For coverage amounts offered at your Company, refer to your Benefits Enrollment Worksheet. *Annual base salary is defined as your annual salary excluding overtime and bonuses. For commission-based positions your annual base salary is your annual salary plus your last 12 months of commissions. Q. What are my Supplemental life insurance options? Supplemental Life insurance is an optional benefit that can provide additional life coverage for you, your spouse partner and eligible dependent children. You can elect to purchase Supplemental life coverage from these options: For you you can elect 1, 2, 3, 4 or 5 times your annual base salary* up to $1 million For your spouse/partner you can purchase $10,000, $25,000, $50,000 or $100,000 up to a maximum of 50% of your basic plus supplemental life (approved amount), combined For your eligible children you can purchase $5,000 or $10,000 Note: You must elect and be approved for employee supplemental life insurance in order to purchase coverage for your spouse/partner and eligible children. *Annual base salary is defined as your annual salary excluding overtime and bonuses. For commission-based positions your annual base salary is your annual salary plus your last 12 months of commissions. Important Note In certain instances, Evidence of Insurability (EOI) or proof of good health is required by The Hartford (Dover s life insurance administrator) before your Supplemental life coverage is approved. Q. How is Accidental Death and Dismemberment (AD&D) different from Life insurance? AD&D coverage would pay the entire benefit amount to your beneficiary if you die in an accident, in addition to any Basic and Supplemental life amounts. Or, if you suffer a serious accidental injury (such as loss of a limb or loss of eyesight) caused by a covered accident, the benefit amount payable would depend on the loss. 3

4 Who s eligible Q. What family members are eligible for Supplemental life insurance? For Supplemental Life insurance, you can enroll: Your legal spouse, including common law spouse through common law marriage in applicable states Your domestic partner same-sex or opposite Your natural children, stepchildren, children placed with you for adoption and children whom you are the legal guardian up to age 26 Your eligible domestic partner s children Important Note You must elect and be approved for employee supplemental life insurance in order to purchase coverage for your spouse/partner, and eligible dependent children. Supplemental life insurance contributions Q. Are there advantages to buying Supplemental life insurance at work? There are good reasons to take advantage of Supplemental life insurance and enroll. Because of Dover s size, we can help keep group life rates lower and more affordable for our employees. It s also easy and convenient because you pay premiums through automatic payroll deductions. Q. What is the cost for Supplemental life insurance? Supplemental Life insurance rates are age-banded, which is the industry standard for this type of insurance. The cost of coverage for you and/or your spouse/partner depends on age, the amount of coverage purchased, and whether you or your spouse/partner use tobacco. Non-tobacco users are eligible for lower contributions. For enrolled children, you pay a monthly flat rate per $1,000 of coverage. For supplemental life rates, see your Employee Contributions Chart. Q. When I reach a new age band, when will my Supplemental life premium change? Any age-rated Supplemental life contribution increase will take effect on the January 1, following the enrolled employee s or spouse s/partner s birthday. Q. How is it determined who will pay tobacco-user contributions for Supplemental life? All employees and spouses/partners need to certify tobacco status independently to avoid the tobacco fees and higher contributions for supplemental life insurance; employees no longer have to certify on behalf of spouses/partners. The Tobacco Certification is one of the questions you will answer before completing the personal assessment. Employees and enrolled spouses/partners must certify as tobacco-free between April 1 and July 31, 2018 to avoid additional fees and higher supplemental life contributions in Important note for tobacco users enrolled in Dover medical plans Tobacco-user certification also impacts any medical coverage in which you and/or your spouse/partner enroll. If either you or your spouse/partner uses tobacco, the Tobacco Fee will apply in addition to the tobacco-user (supplemental life) contribution. 4

5 Q. What does being a tobacco user mean is it more than just cigarettes? For certification purposes, tobacco use includes regular use of cigarettes, cigars, pipes or smokeless tobacco over the last three months. You are not considered a tobacco user if you use cigars, pipes or smokeless tobacco only occasionally. All tobacco use is still prohibited at all Dover campuses. Some exceptions may apply if you are trying to quit tobacco, such as patches, gum, and prescriptions for tobacco cessation as prescribed by your healthcare provider while under doctor s care. Q. My spouse who uses tobacco is enrolled in Supplemental life insurance but not in Dover medical. Will the Tobacco fee apply to my Dover single medical coverage if I am tobacco-free? The Tobacco fee will NOT appy to your Dover medical coverage, nor will you pay the tobacco-user contributions for your employee Supplemental life insurance. You will, however, pay the tobacco-user contributions for spouse Supplemental life insurance. General questions about Life and AD&D insurance Q. If I choose not to elect employee Supplemental life insurance, can I enroll my spouse/partner and/or my children in this coverage? No. You must elect, and be approved, for employee Supplemental life, in order to also purchase Supplemental life insurance for your spouse/partner and/or dependent children. Q. My spouse/partner and I both work at Dover; can I purchase Supplemental life for my spouse/partner? No. You cannot elect coverage for your spouse/partner if he or she also works at Dover and is already covered as an employee under the Supplemental life plan. Q. My spouse/partner and I work at Dover, can we both cover our dependent children for Supplemental life? Only one of you may cover your dependent children for Supplemental life insurance but not both of you. Q. Can my life insurance be reduced? If you are working at Dover at age 70 or older, your Basic and Supplemental Life will be reduced. This chart shows the percentage that is payable to your beneficiary. If you are working % of benefit payable at age: Basic and Supplemental: 70 but under 75 65% 75 but under 80 45% 80 but under 85 30% 85 but under 90 20% 90 and over 15% 5

6 Evidence of Insurability (EOI) Q. In what situations must I provide Evidence of Insurability (EOI) for life insurance? You will need to provide EOI if you decide to increase or add Supplemental life insurance for yourself or your spouse/partner up to certain limits during annual enrollment or if you later add or increase coverage because of a family status change. For new hires, EOI is required if you elect supplemental life coverage above certain amounts during you initial enrollment period. EOI is not required for children who are enrolled in Supplemental life, and it does not apply to Basic life insurance, which is provided automatically by Dover. Situations where EOI is required are described below: Life coverage Enrolling or increasing coverage at annual enrollment Newly hired employees when first eligible Qualified family status change Supplemental life for employee Supplemental life for spouse/ partner If currently enrolled: You can increase coverage from one to two times annual base salary, up to $500,000 with no EOI; additional increases require EOI. If not currently enrolled: You can elect one times annual base salary up to $500,000 with no EOI; additional increase requires EOI. If currently enrolled: Spouse/partner amount may be increased to $25,000 without EOI. Additional increase requires EOI. If not currently enrolled: Elect $10,000 without EOI. Additional increase requires EOI. You can elect two times annual base salary up to $500,000 with no EOI if you enroll during your initial enrollment period You can elect up to $25,000 with no EOI if spouse/partner is enrolled during the initial enrollment period EOI is required for any amount or increase in coverage, whether or not you are currently enrolled EOI is required for any amount or increase in coverage, whether or not spouse/partner is currently enrolled Dependent Child Life Long-term Disability EOI is not required EOI is not required EOI is not required EOI is required if enrolling for the first time during annual enrollment EOI is not required EOI is not required Important Note A qualified family status change is a life event that may change your coverage needs, such as marriage or birth of a new child. If you experience a status change, you have 30 days from the date of the event to add or increase or drop your life coverage. Q. What is the process for providing Evidence of Insurability (EOI), if required? If EOI is required, The Hartford (life insurance administrator) will send a Personal Health Application to your home mail after your enrollment is completed (after annual enrollment or after a status change). You must complete and return the Personal Health Application to The Hartford for approval within 45 days. The Hartford will make a decision based on the information provided. Important Note The new coverage is not effective until it is approved by Hartford. You will be notified by mail if and when your coverage is approved. Your local HR will also be advised of the decision to update your payroll contributions. Q. Are there instances where I can purchase Supplemental life without Evidence of Insurability (EOI)? You can purchase Supplemental life coverage up to certain limits without EOI, during annual enrollment and as a new hire. For details, see your Benefits Enrollment Decision Guide and the chart presented earlier. 6

7 Naming a beneficiary Q. Why do I need to designate a beneficiary? The value of having life and AD&D coverage is that it will pay a cash benefit to your designated beneficiary in the event of your death. If you die without having a designated beneficiary on file, The Hartford is required to pay your benefit to the legal default beneficiary which may not be what you intended. To make sure the people you want protected are protected, you must designate a beneficiary through the WageWorks website or by calling a Benefits Advocate at Both options are available 24/7. If you already named a life insurance beneficiary, follow these same steps to review your beneficiary information and ensure it still reflects your life situation and your wishes. 1. Go to DoverHealthandWellness.com > Enroll & Change Benefits tab (at the top) 2. Under Important Links, click WageWorks benefits website and log in 3. Click the blue Personal Information tab > Beneficiaries tab (below Personal Information) > Add Beneficiaries (or Edit Beneficiaries if applicable) 4. Complete (or update as needed) the information fields have this information ready when you log in or call: Your relationship to the beneficiary Beneficiary s full legal name, Social Security number, birth date and address Whether the beneficiary is primary or secondary (you must name at least one primary beneficiary; the secondary beneficiary(ies) would receive payment only if the primary beneficiary(ies) die before you do or cannot be located) Percentage of your total benefit each beneficiary(ies) should receive; these must add up to 100% 5. Click Save Changes 6. Follow the same steps to enter or edit additional beneficiaries if you wish Quick Tip Annual enrollment is a good time to review and update your beneficiary information online. Long-term disability plan Q. What is the Long-term disability benefit? Long-term disability (LTD) coverage pays you a portion of your earnings if you cannot work because of a disability. Check your Benefits Enrollment Worksheet to see if you need to enroll and pay for this coverage or if it is provided to you automatically. Your LTD benefit equals 60% of your monthly base salary*, up to the maximum monthly benefit of $24,000. The minimum monthly benefit is the greater of $100 or 10% of your disability benefit. Annual base salary is defined as your annual salary excluding overtime and bonuses. For commission-based positions your annual base salary is your annual salary plus your last 12 months of commissions. Q. Does Dover offer any other disability benefits, such as sick pay or short-term disability? Your local Company determines the policy for additional disability plans it will offer, such as sick pay, short term disability, time off or personal days. Contact your local HR representative for more information on what s available at your location. 7

8 Q. When is an employee considered to be disabled under the LTD plan? You are considered disabled when they are prevented from performing one or more of the Essential Duties of: Your occupation during the elimination period Your occupation, for the 24 month(s) following the elimination period, and as a result your current monthly earnings are less than 80% of your indexed pre-disability earnings and After that, any occupation Q. When do LTD benefits begin? You must be considered disabled because of an illness or injury for 180 days before LTD benefits begin. Important Note You will be required to provide proof of your disability to The Hartford at the time you apply for benefits. You may also need to provide proof of continued disability. Q. How long can I receive LTD payments? If you were disabled before age 63, your LTD payments will end when you are no longer disabled, or if earlier, after receiving payments for the greater of your Social Security retirement age, or 42 months. If you became disabled after age 63, your payments will end when no longer disabled, or if earlier, based on a payment schedule. For more details, refer to your Benefits Enrollment Decision Guide. Q. What if I am eligible for Social Security Disability Insurance benefits (SSDIB)? The Hartford will work with you to file for SSDIB if you become eligible. Q. What is the LTD pre-existing condition limit? This means that the Long-term disability plan limits the benefits employees can receive for a pre-existing condition. In general, if employees were diagnosed or received care for a condition before the effective date of their policy or their coverage effective date, Hartford will not pay any benefit, under The Policy for any Disability that results from, or is caused by a Pre-existing Condition, unless, at the time You become Disabled: 1. You have not received Medical Care for the condition for 12 consecutive month(s) while insured under The Policy; or 2. You have been continuously insured under The Policy for 12 consecutive month(s). 8