Elite Plan for Firms
Benefits During Total Disability
(Optional) Waiver of Contribution during Disability
If a covered individual becomes totally disabled before age 60, the individual's life insurance will be extended at no cost while that individual 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. See prior description of coverage while totally disabled under the section "Group Life Plans for Firms Frequently Asked Questions." (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 to exceed the lesser of 75% of the life insurance amount or $375,000.
Accelerated Death Benefit option is a feature that is made available to group life insurance participants. It is not a health, nursing home, or long-term care insurance benefit and is not designed to eliminate the need for those types of insurance coverage. The death benefit is reduced by the amount of the accelerated death benefit paid. There is no administrative fee to accelerate benefits. Receipt of accelerated death benefits may affect eligibility for public assistance and may be taxable. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefits and is considered ["terminally ill" or "chronically ill."] You may wish to seek professional tax advice before exercising this option.