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 the coverage reduces or terminates because of the attainment of an age, or because the insured is no longer an employee of the Firm the insured has the privilege of converting the amount by which the insurance was reduced or terminated to a Prudential individual life insurance policy. The insured can get this life insurance protection without taking a medical examination or answering health questions. To convert the insured must apply for the individual contract and pay the first premium according to the following rules:
If the insured has been given written notice of the conversion privilege within 15 days before or after he/she ceases to be insured for all or part of the insurance, he/she must apply for the individual contract and pay the first premium within 31 days after ceasing insurance coverage; or,
If he/she has been given written notice of the conversion privilege more than 15 days but less than 90 days after he/she ceases to be insured for all or part of the insurance, he/she must apply for the individual contract and pay the first premium within 45 days after written notice has been given; or,
If he/she have not received written notice of the conversion privilege within 90 days after all or part of the insurance ceases, the time allowed for exercising the privilege ends at the end of 90 days.
If your insurance ends because all of the insurance ends for your class, the total amount of individual insurance which is obtained through this privilege will not exceed the total amount of the insurance that was terminated under the Group Contract reduced by the amount of group life insurance from any carrier for which he/she becomes eligible within 45 days. A death benefit is payable under the Group Contract, even if he/she did not apply for conversion, if he/she dies within 31 days of the termination and while still entitled to convert according to the rules described above. If the insurance for a dependent child terminates for any of the reasons stated, all or part of the Dependent Child coverage may be converted to an individual life insurance policy within 31 days of such termination.
No evidence of insurability will be required. 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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