UnumProvident Universal Life Plan
Details
Life is unpredictable. But you can take steps to help protect your family
now and into the future with UnumProvident’s Voluntary Individual Universal
Life insurance. Ask your benefits counselor for more information and sign up
today!
AFFORDABLE INSURANCE PROTECTION
UnumProvident’s Voluntary Individual Universal Life Insurance can give
you the insurance protection you need, while also giving you the financial
flexibility you want. This policy is designed to provide a death benefit to
your beneficiaries if you pass away in addition to the life insurance
coverage your employer may already be providing for you. For an affordable
premium, you can help provide more financial protection for your family —
now and into the future.
LIVING BENEFIT OPTION INCLUDED
This feature is automatically included for all eligible employees and
spouses between the ages of 15 and 79 and children/grandchildren ages 14
days through 24 years for no additional premium. It provides the option of
requesting up to 75% of the policy’s death benefit, to a maximum of
$150,000, if the insured is diagnosed with a medical condition limiting life
expectancy to 12 months or less. If you have to face a terminal illness,
this option can provide additional financial assistance during a difficult
time.
CONVENIENT PAYROLL DEDUCTION
Your premiums are automatically deducted from your paycheck, so you
don’t have to worry about writing checks or mailing payments.
NO PHYSICALS REQUIRED
If you are actively at work1, you may apply for coverage by completing a
simple application and no physical exams are required! Your coverage becomes
effective on the date you sign the application. This means that you will
receive the plan and coverage amount you applied for on the application
unless it is determined to be unacceptable under UnumProvident’s rules,
limits or standards. In such event, the plan and coverage amount may be
modified or declined.
INDIVIDUALLY OWNED
If you leave your company, you can take your policy with you and still
pay the same premium. Instead of paying your premiums through payroll
deduction, UnumProvident will bill you directly at home.
CASH VALUE ACCUMULATION FEATURE
Voluntary Individual Universal Life Insurance can build cash value that
earns interest. The interest rate your policy is credited with will never be
less than the guaranteed minimum rate of 4.0%. It is important for you to
remember, as with all universal life policies, that the projected cash value
of your policy may change over time. Such changes can result from
fluctuations in interest rates, scheduled changes in the cost of insurance,
or non-payment of premiums, policy loans and loan interest. We encourage you
to maintain consistent premium payments and repay any outstanding loans in a
timely fashion to avoid an early lapse in coverage or termination of your
policy.
ADDITIONAL FEATURES
Accidental Death Benefit Rider
• Available to employees and spouse between the ages of 15 - 65 for an
additional premium.
• Provides an additional death benefit equal to the face amount, up to a
maximum of $150,000, if the insured dies as a result of an accident before
age 70.
• Under certain conditions, the benefit will double if death occurs from
injuries sustained while the insured is a fare-paying passenger via
commercial transportation.
• Benefits increase by 25% if death occurs from accidental bodily injury
sustained while wearing a seatbelt.
FAMILY COVERAGE
Spouse Coverage
Voluntary Individual Universal Life coverage is available for your
spouse based on a qualifying health question. However, no physical exams are
required and coverage is available even if you don’t apply for coverage
yourself. A few additional health questions may be asked based on the level
of coverage being applied for.
Children’s Standalone Coverage
Children, stepchildren, legally adopted children and grandchildren must
be between the ages of 14 days - 24 years to be eligible for coverage.
FREQUENTLY ASKED QUESTIONS
Is this same coverage available to an individual not employed at my company?
No. UnumProvident’s Voluntary Individual Universal Life insurance is
available exclusively through your employer.
Am I required to apply for this coverage?
No. Your coverage is voluntary, and you decide if it is right for you and
your family’s needs. It’s your choice.
Who becomes the owner of the policy?
UnumProvident’s Voluntary Individual Universal Life Insurance policy is just
that - voluntary and individual. This means that electing coverage is
optional, and if you decide coverage is right for you, then you become the
owner of your policy.
Does this policy automatically replace any of my existing group insurance
coverage?
No. Voluntary Individual Universal life insurance is a supplemental
insurance policy and can enhance your group coverage.
May I increase my coverage in the future?
Yes, your coverage can be increased to meet your changing needs. Once you
have owned your policy for one year, you may apply for additional coverage
up to the maximum amount available for your age.
May I insure my spouse and/or my children even if I don’t participate in
this plan?
Yes, coverage is available for your spouse and children even if you choose
not to purchase coverage for yourself. Certain minimal underwriting
requirements may apply. Ask your benefits counselor for more details during
enrollment.
May I take a loan on my policy?
Yes, you may borrow part of your cash value from the policy at an annual
interest rate of 8.0% per year.
How will I be kept informed of my cash value?
Each year, UnumProvident will mail you a policy statement outlining what you
have paid, how much cash value you have, plus the status of any loans,
interest credited and applicable administrative charges. These statements
are designed to provide you with a valuable record of your policy activity.
Does my policy have a surrender charge?
If you surrender your policy during the first 10 years of coverage, a
surrender charge will apply. Beyond the 10th year, there is no surrender
charge. A unique 10- year period applies to each increase in coverage.
Who can I contact if I have questions about my policy after
enrolling?
During enrollment, a benefits counselor will be available one-on-one to
answer any questions you may have about Voluntary Individual Universal Life
Insurance.
If you have questions about your policy after enrolling, simply pick up the
phone and call UNUM PROVIDENT at 1-800-635-5597.
The policy or its provisions may vary or be unavailable in some states. The
policy has exclusions and limitations which may affect any benefits payable.
UnumProvident Corporation complies with Act 91, the Vermont Civil Union
Endorsement Law.
1 Being “actively at work” means that on the day you apply for coverage, you
are working at one of your company’s business locations, or you are working
at a location where you are required to represent your company. If you are
applying for coverage on a day that is not one of your scheduled workdays,
then you will be considered actively at work if you meet this definition as
of your last scheduled workday. You are not considered actively at work if
your normal duties are limited or altered due to your health, or if you are
on a leave of absence.
Underwritten by the following subsidiary of UnumProvident Corporation:
Provident Life and Accident Insurance Company
1 Fountain Square, Chattanooga, TN 37402
www.unumprovident.com
©2006 UnumProvident Corporation. All rights reserved. UnumProvident is the
marketing brand of UnumProvident Corporation’s insuring subsidiaries.
CU-2673 (3/06)
UnumProvident Long Term Care
Rider
If you’re like most people, you’ve heard how important it is to
prepare for your future and that of your family. You may have acquired a home,
built a savings nest egg, begun contributing to retirement funds, and even made
plans and preparations for your children’s education. But is that enough? Are
you financially prepared to cover the expenses of long term care should you or
your spouse become ill or disabled, or need special medical treatment as you get
older?
Choosing UnumProvident’s Long Term Care Rider to complement your
voluntary life insurance plan can help give you the additional financial
protection you may need. In the event you or your covered spouse need long term
care, this rider can help provide benefits to cover those costs.
Consider these facts:
• In the year 2020, some 12 million older
Americans are expected to need long term care. Individuals and their families
pay about one-fourth of all nursing home costs out of pocket. One year in a
nursing home can average more than $50,000. Bringing an aide into your home
three times per week (two or three hours per visit) to help with bathing,
dressing, meals and similar household chores can easily cost $1,000 per month or
$12,000 per year. Family members and friends are the sole caregivers for 70% of
elderly people. Medicare pays only about 12% for short-term skilled nursing home
care following hospitalization. By the end of 2002, more than 5,600 employers
were offering a long term care insurance plan to their employees, retirees, or
both.1
• Costs for long term care are expected to
quadruple in the next 30 years. 2
The
Benefits of the Long Term Care Rider
The Long Term Care Rider is designed to
provide you access to your policy’s death benefit to help cover the expenses
related to long term care.
• Available at initial offering to employees
and spouses ages 18 - 70. All newly eligible adult policies will automatically
receive the Long Term Care Rider.
• Available with base policy face amounts of
at least $10,000.
• Provides a maximum monthly benefit for
nursing home care of the lesser of:
- 4% of the death benefit, less any
policy debt at the end of the elimination period; or
- $3,000
• Provides a maximum monthly benefit for home
health care or adult day care of the lesser of:
- 2% of the death benefit, less any
policy debt at the end of the elimination period;
- The actual monthly cost incurred; or
- $1,500
• Benefits are payable once you have been
receiving long term care for 90 days, subject to rider conditions.
• Provides for a waiver of policy monthly
deductions even if your policy does not have the Waiver of Premium Rider.
• The maximum lifetime payout is equal to
100% of the death benefit, less any policy debt.
• Benefits and amounts may vary by state.
Please refer to your Outline of Coverage for complete details.
Available to all employees and spouse between the ages of 18-70.
This Rider provides monthly benefits if a physician certifies the insured is
functionally impaired and requires long term care provided through a nursing
home, home health care or adult day care. There is a 90 day waiting period, and
benefits are subject to rider conditions. Maximum lifetime value is equal to
100% of the death benefit minus any policy debt. Available at initial offering
on policies of $10,000 or more.
LONG TERM CARE FREQUENTLY ASKED QUESTIONS
Can the Long Term Care Rider be added to any size life insurance
policy?
The minimum policy size to which the Long Term Care Rider can be added is
$10,000.
Will receiving benefits under this rider change the death
benefit of my life insurance policy?
Each monthly long
term care benefit will reduce your death benefit and other values in your
policy. Please see the "Impact on Policy" section of your Outline of Coverage
for specific values and reductions.
Can I receive long term care benefits if I’ve
already received part of my death benefit as an advance due to terminal illness?
Your Long Term Care Rider will terminate if
any of your death benefit is advanced to you under any provisions that pay
pre-death benefits for a terminal illness, whether those provisions are part of
your life insurance policy or an attached rider.
If I need long term care benefits, when will
they begin?
Payments will begin after 90 days. This 90-day
waiting period is referred to as your elimination period; no benefits will be
paid during the elimination period.
What is a pre-existing condition and how will it affect my Long
Term Care Rider coverage?
A pre-existing
condition is when a healthcare provider has recommended treatment or given
medical advice within six months prior to your Long Term Care Rider’s effective
date. Any period of long term care beginning six months after the effective date
will not be covered if the care is needed due to a pre-existing condition.
Can I receive long term care benefits for care received in a
retirement home?
Your Long Term Care
Rider does not provide benefits for care received in retirement, convalescent
and residence homes, or community living centers.
What is the maximum long term care benefit I can receive?
Your maximum lifetime
long term care benefit is 100% of your life insurance policy’s death benefit at
the time your elimination period is satisfied, less any policy loans.
Can I insure other family members under the
Long Term Care Rider?
The Long Term Care Rider can be added to your
spouse’s voluntary life insurance policy. It cannot be added to your children’s
policies.
If I already have long term care insurance,
should I replace it with this rider?
Only you can make that decision. You should
remember that this rider’s benefits are paid as a percentage of your life
insurance death benefits and are not based on the actual costs of long term
care. These benefits will help you pay long term care expenses, but may not
cover them completely. You should examine your benefits carefully before making
any replacement decisions.
The Long Term Care Rider is not available in CA, CO, CT, DC, KS,
MA, MN, NJ, NM, NY, PA, RI, SD, VT, WA, WI.
Underwritten by the following subsidiary of UnumProvident
Corporation:
Any person currently covered by Medicaid, except residents of
Kentucky, will be excluded from eligibility. The policy or its provisions may
vary or be unavailable in some states. The policy has exclusions and limitations
which may affect any benefits payable.
1 America’s
Health Insurance Plans, "Guide to Long Term Care Insurance," 2004. pg. 3 [cited
May 19, 2005]; available from http://www.http://www.ahip.org/content/default.aspx?bc=41|329|450
2 National
Underwriter, "Awareness of LTC Insurance Value Growing," ACLI report, May 2003.
©2006 UnumProvident Corporation. All rights reserved.
UnumProvident is the marketing brand of UnumProvident Corporation’s insuring
subsidiaries.
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