Group Insurance for Firms
Benefits During Total Disability
Life Insurance Installment Payments
An insured individual under age 50 who becomes totally and permanently disabled is eligible to receive monthly installment payments. Installment payments are paid at a rate of $10 per $1,000 of term life insurance coverage the insured has, for a period of up to 10 years. As payments are made, the face amount of life insurance is reduced accordingly. See prior description of Total and Permanent disability under the section "Group Insurance Plan Frequently Asked Questions".
Waiver of Contribution during Disability
If a covered individual becomes totally disabled before age 60, the member's
life insurance will be extended at no cost while the member remains totally
disabled. As long as the disability remains, and proof of disability is furnished
from time to time, the death benefit protection will be extended at no cost
from year to year. (This extension will not apply to the accidental death
and dismemberment insurance.)
Accelerated Benefit Option
Another no-cost feature of the Plan, this Option allows participants who become
terminally ill while covered to receive a portion of their life insurance benefit
in a lump sum. To receive this benefit, the insured individual must furnish
satisfactory evidence, including a doctor's certification, that his or her life
expectancy is six months or less. The insured may elect a portion of the insurance
(generally tax-free) while he or she is living, and the death benefit will be
reduced by any amount received. The insured may elect to receive a portion of
term life insurance not more than 75% or $375,000 - whichever is less.
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