Group Insurance for Firms
Additional Plan Features
Accidental Death and Dismemberment (AD&D) Insurance
Included with the term life insurance are accidental death and dismemberment
benefits. The full amount (equal to the amount of term life insurance) is
payable for the loss of: life, both hands, both feet, sight of both eyes, one
hand and one foot, one hand and the sight of one eye, or one foot and the
sight of one eye. One-half the amount is payable for the loss of one hand,
one foot, or the sight of one eye. The accidental death benefit is payable
to the named beneficiary. All other accident benefits are paid to the insured,
if living, otherwise to his or her estate.
When the Insurance Terminates
The insurance for an individual will automatically terminate when he or she
is no longer actively engaged in work full-time with the contributing employer,
the firm ceases to be a contributing employer, or the group policy terminates.
Coverage for a dependent terminates when: the insurance terminates on the insured proprietor, partner, firm member, or employee; the dependent no longer qualifies; the firm terminates its dependents coverage; the firm terminates its Plan participation; or the provision in the policy for dependents coverage terminates.
Minnesota Residents Only : If employment is terminated, either voluntarily or involuntarily, or if the individual is laid off and the group policy is still in force with the firm, coverage may be continued by the individual until coverage is obtained under another group policy or until a return to work from lay off; however, the maximum period that coverage may be continued is 18 months. Minnesota law allows the individuals to elect such coverage by the later of (a) 60 days from the date the notice of continuation is received from the firm; or (b) 60 days from the date coverage would otherwise have terminated.
Conversion Privilege
If coverage terminates because the insured is no longer employed full-time,
all or part of the term life insurance may be converted to an individual life
insurance policy within 31 days of such termination. Similarly, if the term
life insurance is reduced due to attainment of an age, a change in classification,
a change in earnings basis, or a Plan amendment, the individual may convert
an amount equal to the amount by which the insurance was reduced to an individual
policy within 31 days of the reduction.
If insurance terminates because the group policy or employee's class is terminated, or the firm ceases to be a contributing employer, the individual has the same conversion privilege. In this event, the amount of the individual policy may not exceed the amount of insurance at termination, reduced by any amount for which he or she may become eligible under any group insurance policy issued within 45 days of the termination. This limit does not apply to Minnesota residents.
No medical examination or other evidence of insurability will be required. Any individual life insurance policy then customarily issued by Prudential may be requested, except term insurance or a policy containing disability benefits. (However, preliminary term insurance for up to one year may be included.)
Conversion rights in a modified form are also available for insured dependents.
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