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Basic Employee Life Insurance
& AD&D
This insurance is payable for death from any cause to any person you
name as beneficiary.
All Eligible Employees .......One
Times your Base Annual Earnings, rounded to the next $1,000. (No Cost To You)
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Optional Employee Life Insurance
AND AD&D*
Your employer sponsored basic life coverage provides important
protection for you, but you may need to add to that protection. To help meet
this need, you have the opportunity to elect additional group life insurance
under the optional portion of your plan.
Your choice of the following
amounts: $100,000, $50,000, $40,000, $30,000, $20,000, $10,000
Guaranteed Issue Amounts:
Employee less than age 60: $50,000
Employees age 60 to 69: $20,000
Employees over age 70: No Guarantee Issue
| Employee
Optional |
Monthly Cost |
| $100,000
|
$24.00 |
| $50,000
|
$12.00 |
| $40,000
|
$9.60 |
| $30,000
|
$7.20 |
| $20,000
|
$4.80 |
| $10,000
|
$2.40 |
* The payroll deductions for the term life is post-tax
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Optional Dependent Life Insurance*
Provides coverage on:
• Your Spouse
• Child(ren) from 14 days of age to age 19 (up to age 25 if wholly dependent
upon you for maintenance and support and if enrolled as a full-time student in
an accredited school or college). Handicapped children can continue to be
covered with no age limit if handicap is diagnosed prior to age 19.
(It is your responsibility to notify payroll in writing when a dependent is
ineligible for coverage. Examples of ineligible dependent status are divorce or
a child graduates from college).
• $2,500 on your spouse
• $2,500 on each of your eligible children (Regardless of the number of
children)
Optional Dependent Monthly Cost:
Family Coverage (Spouse & Children) $1.06
*The payroll deductions for the term life is post-tax
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Accidental Death and Dismemberment
Benefits under this coverage are payable as described in your
certificate. All active employees have Basic Accidental Death and Dismemberment
coverage.
AD&D Exclusions:
Benefits are not payable for any loss to which a contributing cause is:
- intentional self-inflicted injury or
intentional self-destruction;
- disease, bodily or mental infirmity, or
medical or surgical treatment of these; except for:
(a) a bacteria infection resulting from an
accidental cut or wound;
(b) the accidental ingestion of a poisonous
food substance;
- participation in a riot;
- duty as a member of any military, naval or
air force;
- war or any act of war, declarded or
undeclared;
- participation in the commission of a
felony;
- voluntary use of drugs; except when
prescribed by a physician;
- voluntary inhalation of gas, including
carbon monoxide;
- travel or flight in any aircraft, including
balloons and gliders; except as a fare paying passenger on a regularly scheduled
flight; or
- driving a vehilce while intoxicated.
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FEATURES
Eligibility
You will be eligible for insurance if you are a permanent full-time
employee.
Enrollment
Enrollment is simple - just fill out the election card provided by
your employer. You have 31 days to enroll yourself and dependents without
evidence of insurability. Thereafter you will have an opportunity r approved
evidence of your insurability or waived such requirement.
Beneficiary
You have the right to designate the beneficiary of your choice under
employee coverage. The beneficiary elected on your life enrollment form
designates your beneficiary for basic and optional coverage. You are
automatically the beneficiary under Dependent Life. It is your responsibility to
update the beneficiary designation as needed.
Suicide Exclusion
No Employee or Dependent Life Benefits are payable if suicide is
committed within two years from the effective date of the coverage.
WHEN YOUR BASIC INSURANCE STARTS
If you enroll on or before the day you become eligible your insurance
becomes effective on the date of your eligibility if you are then actively at
work; otherwise on the day you return to active work.
WHEN YOUR OPTIONAL INSURANCE STARTS
If you meet the eligibility requirements for date of enrollment and for
effective date of coverage, your Optional Employee Life Insurance, if you have
enrolled for that coverage, will become effective on the date of your
eligibility provided you are then actively at work; otherwise, on the day you
return to active work.
If you or any dependents do not satisfy the eligibility requirements described
above for date of enrollment and for effective date of coverage, that person
will not become insured for Optional Life Insurance until such person has
furnished medical evidence of insurability satisfactory to Lincoln Financial Group Insurance Company.
Reductions at age 65 and over on
basic term life coverage
If you remain in active service beyond age 65, your Basic Employee
Life Insurance will reduce as follows:
| Attained
Age |
Reduction Schedule |
| 65
|
Benefits will reduce by 35% of original amount |
| 70
|
Benefits will reduce an additional 20% of original
amount |
| 75
|
Benefits
will reduce an additional 15% of original amount |
Reductions at age 65
and over on OPTIONAL term life coverage
If you remain in active service beyond age 65, your Optional Employee
Life Insurance will reduce as follows:
| Attained
Age |
Reduction Schedule |
| 65
|
Benefits will reduce by
30% of original amount |
| 75
|
Benefits will reduce an
additional 20% of original amount |
Termination of coverage
All insurance under this plan will terminate upon the earlier of
retirement, termination of employment, when the plan ceases or when you withdraw
from the plan. Nevertheless, if you should die within 31 days thereafter, your
life insurance will still be paid to the beneficiary.
Disability (Prior to age 60)
If an insured becomes
totally disabled prior to age 60, the amount of group life coverage may be
continued without payment of premium. After the first two years of Total
Disability, the Company will not request proof or an exam more than once a year.
Please refer to the Certificate Booklet for the Waiver of Premium provision at
Social Security Normal Retirement Age.
Statement of Health
Increases in coverage, a re-entry
in the plan and participants who enroll 31 days beyond the eligibility period
will be required to provide evidence of insurability satisfactory to
Lincoln Financial Group Life Insurance Company.
APPROVED LEAVE OF ABSENCE
If you are on leave (off the payroll) you may
continue your group term life insurance for a period of 3 months by paying the
cost of your Basic Employee Life Insurance plus the cost of your Optional Life
Insurance. Amounts of insurance may be continued for a period of not longer than
the last day of the month following the month which leave occurs.
Conversion
If your employment terminates
while you are covered under the plan, you may purchase without medical evidence
of insurability, any individual insurance policy, (without AD&D) except a term
policy, issued by Lincoln Financial GroupInsurance Company in any amount up
to the amount of your coverage in effect on your date of termination. You must
apply for this policy within 31 days after the date your employment terminates.
This privilege applies to Optional Employee Life and Optional Dependent Life
Insurance as well as the Basic Employee Life Insurance. Please refer to the
Certificate Booklet for more details.
CONTINUATION OF COVERAGE
This option gives you the opportunity to continue your Term Life Insurance
policy without submitting Evidence of Insurability, if employment or policy
terminates due to anything other than sickness, injury or retirement. Coverage
must be in force for at least 12 months in a row to be eligible. Continuation of
coverage applies to Optional Employee Life Insurance and Accidental Death and
Dismemberment.
The accelerated DEATH
benefit (ADB)
Lincoln Financial Group Life Insurance
Company has included an Accelerated Death Benefit (ADB) as part of your group
life benefits. Under this option, if you are diagnosed as having a terminal
illness, you may be eligible to receive an advance payment of up to 75% or
$250,000, (whichever is less) of your Life Insurance benefit amount. Please
refer to your Certificate Booklet for details.
CLAIMS PROCEDURE
Claim forms needed to file for benefits
under the group insurance program can be obtained from your employer who will
also be ready to answer questions about the insurance benefits and to assist in
filing claims. The instructions on the claim form should be followed carefully.
This will expedite the processing of the claim. Be sure all questions are
answered fully. If there is any question about a claim payment, an explanation
can be requested from your employer, who is usually able to provide the
necessary information. Please refer to the Certificate Booklet for more details.
For Questions regarding the status of your statement of health
or life claim, please con at:
800-423-2765.
Coverage is underwritten by Lincoln Financial Group company. Lincoln Financial Group
is the marketing name for Lincoln National Corporation and its affiliates.
PLAN ADMINISTRATOR:
City of Kannapolis
246 Oak Avenue
Kannapolis, NC 28082
(704) 920-4300
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