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TAC-$AVER PLUS Universal Life
Insurance
Universal Life Insurance = Protection + Portability
Voluntary Universal Life (UL) Insurance combines life insurance protection
with an ability to grow cash value. You have the safety and security of a
specified death benefit plus the opportunity to tailor your coverage to your
personal situation. Individual or family coverage is available.
You’ll appreciate the convenience of automatic premium payments - through
payroll deduction. If you retire or leave your group, you can take comfort in
knowing the individual rate for your coverage won’t change because you leave.
You can choose direct bill or pre-authorized bank draft.
Coverage Continuation In Case Of Layoff
To address employee concerns about losing coverage because of a layoff,
Transamerica Life Insurance Company includes a unique layoff feature in your
TAC-$aver®Plus UL certificate. It protects your life insurance from lapse for up
to six months if you’re involuntarily laid off.
You must have been employed on a permanent, full-time basis. The layoff must be
due to: a reduction in work force due to economic conditions; a decrease in your
employer’s production; or, a reorganization causing a discontinuation of your
job or a resulting change in job aptitude or skills requirements. Other
conditions and limitations are outlined in the Certificate.
Protection and Options to Suit Your
Needs
Permanent Life Insurance Protection
• Simplified underwriting
• Death Benefit Protection
• Tax-Deferred Cash Value Growth
• Coverage is Portable
Living Benefit Coverages
• Layoff Waiver
• Accelerated Death Benefit for Terminal Illness
Options for Family Protection
• Spouse’s Coverage*
• Children’s Coverage
*Or equivalent as defined by governing State Law
Employees Coverage Limits:
Guaranteed Issue (GI) or Conditional Guaranteed Issue (CGI) Maximum*: $100,000
or five times the employee’s annual base salary, whichever is less.
Simplified Issue (SI) Maximum**: $150,000 or five times the employee’s annual
base salary, whichever is less.
Employee Eligibility:
An employee may apply for life insurance coverage subject to the satisfaction of
the following eligibility requirements.
General and Guaranteed Issue
Requirements
1. An employee must be actively performing the regular duties of his/her job for
at least 30 hours per week in the usual manner and at the usual place of
employment or business. If he/she is not working due to an illness or injury,
the applicant is not eligible until he or she returns to work.
2. An employee must be age 16 through 70.
Conditional Guaranteed Issue
Requirements
In the past six months prior to the application date, an employee: a) must not
have been hospitalized at any time; and b) must have not missed more that five
consecutive days of work due to accident of illness.
Simplified Issue Requirements
An employee must satisfactorily answer the required eligibility questions
and the required evidence of insurability questions on the application and must
provide additional evidence of insurability that is satisfactory to the insurer,
if the insurer requests it.
Spouses Coverage Limits:
Conditional Guaranteed Issue (CGI) *: $5,000 - $25,000.
Simplified Issue (SI) Maximum**
$50,000.
An employee must participate in order for his or her eligible spouse to
qualify for CGI coverage. SI underwriting applies if a spouse does not qualify
for CGI coverage or applies for an amount in excess of the CGI limit. SI
underwriting is based on an acceptable health history and is not guaranteed. The
spouse cannot apply also as an employee.
Spouse Eligibility:
An eligible employee may apply for life insurance coverage on his or her
spouse, subject to the satisfaction of the following eligibility requirements:
General Requirements
1. A spouse must be legally married to the employee as determined by the
laws of the state in which the employee resides.
2. The spouse must be age 16 through 65.
3. If employed, a spouse must be actively performing the regular duties of his
or her job in the usual manner and at the usual place of employment or business.
If the spouse is not working due to an illness or injury, the spouse is not
eligible until he or she returns to work.
4. If not employed, a spouse must be able to perform the normal activities of a
person of the same age and gender. A spouse who is disabled is not eligible
Dependent Children Coverage
Limits:
Conditional Guaranteed Issue (CGI) *: $12,500 or $25,000
Simplified Issue Maximum**: $25,000
If an employee participates, CGI is available for all eligible children
All children in a family must be insured equally. An employee may elect to provide a Child’s Term Rider in lieu of the individual UL on his or her children. If an applicant and his or her spouse are both eligible as employees, their child(ren) can be insured as dependents of either one, but not both. The child cannot apply also as an employee.
General Requirements
1. A dependent child is an unmarried child financially dependent upon his or
her parent(s) for support, who is:
a. An employee’s natural child, or a child for whom adoption proceedings have
begun, or
b. An employee’s legally adopted child
c. A stepchild who lives with the employee, or
d. A child for whom the employee has been appointed legal guardian who lives
with the employee; and
e. Age 1 year through 21 years for individual UL coverage and 15 days through 18
years for Term Rider Life Insurance.
CONDITIONAL AND SIMPLIFIED ISSUE REQUIREMENTS FOR DEPENDENTS:
*CGI-Conditional Guaranteed Issued Requirement - a) must not have been
hospitalized in the past six months prior to application date; b) must not have
missed more than five consecutive days of work due to accident or illness, if
employed. **SI-Simplified Issue Requirements - a dependent must satisfactorily
answer the required eligibility questions and the required evidence of
insurability questions on the application and must provide additional evidence
of insurability that is satisfactory to the insurer, if the insurer requests it.
A Special “Living Benefit” for
Terminal Illness
The Accelerated Death Benefit for Terminal Illness lets you “tap into“ your
life insurance in the event of a future terminal illness diagnosis, and still
provides a benefit for your beneficiary. If you or an insured dependent is
diagnosed and certified by a physician as having an illness or physical
condition which can reasonably be expected to result in death within 12 months,
you can receive up to 50% of the death benefit or $100,000, whichever is less.
There is no cost for this coverage until the accelerated benefit is exercised.
If you use the feature, the death benefit and cash accumulation value are then
reduced. The balance will be paid to the beneficiary following the Insured ’s
death. Coverage must be in force at the time of the original diagnosis of the
terminal illness. This feature terminates once the accelerated death benefit is
paid. (Form No. 9-G701 0091 or CR100800)
Act Now to help Secure Your Financial Future!
If you’re looking for valuable life insurance protection backed by a company
you can count on, Transamerica Life Insurance Company’s Voluntary Universal Life
Insurance offers both...plus the advantage of living benefit coverages. Because
it’s Universal Life Insurance, it also offers you flexibility and the option to
grow tax-deferred cash value accumulation. Ask your HR representative how to get
started.
Important Information about this Life Insurance Coverage
For all insurance coverages, benefits are not payable for a loss sustained
after the contract lapses. Coverage ends on the earliest of: the date we receive
a written request for surrender, the date you or another Insured reaches age 95,
the Certificate lapses (subject to the Grace Period), or death. Generally, if
suicide occurs during the first two years of coverage, the death benefit is
limited to the return of premiums paid.
The Accelerated Death Benefit for Terminal Illness may or may not qualify for
favorable tax treatment under the Internal Revenue Code. Whether such benefits
qualify depends on factors such as your life expectancy at the time benefits are
accelerated, or whether you use the benefits to pay for necessary care. If the
acceleration-of-life-insurance benefits qualify for favorable tax treatment, the
benefits will be excludable from your income and not be subject to federal
taxation. Tax laws relating to acceleration-of-life-insurance benefits are
complex. You are advised to consult with a qualified tax advisor about
circumstances under which you could receive acceleration-of-life-insurance
benefits excludable from income under Federal law. Receipt of
acceleration-of-life-insurance benefits may affect you, your spouse’s, or your
family’s eligibility for public assistance programs such as medical assistance
(Medicaid), Aid to Families with Dependent Children (AFDC), supplementary Social
Security Income (SSI) and drug assistance programs.
You are advised to consult with a qualified tax advisor and with social service
agencies concerning how receipt of such payment will affect you, your spouse,
and your family’s eligibility for public assistance.
Coverage is subject to certain conditions, limitations and exclusions, which are
detailed in the Group Master Policy, Certificate and Riders (or, in some states,
in the
Policy and Riders); together, these constitute the legal contract. If there is a
conflict between what is described in this brochure and the contract, the
contract will govern.
Accelerated Death Benefit Rider for
Long-Term Care with Extension of Benefits Rider
Statistics show that 11.5 million Americans need long-term care. And
though a majority (51%) of those needing care are elderly, 46% of those relying
on long-term care are working-age adults. When you consider that the average
cost of nursing home care is about $46,000 annually, it’s obvious what a
financial impact long-term care can have.
To help with these often-exorbitant costs, our Accelerated Death Benefit Rider
for Long-Term Care with the Extension of Benefits Rider allows an Insured to
take an advance against his or her life insurance death benefit to pay for care,
and extend the death benefit payments, if necessary.
activation of the accelerated death
benefit rider for long-term care with extension of benefits rider
Benefits under the Accelerated Death Benefit Rider for Long-Term Care
with the Extension of Benefits Rider can only be triggered by a chronically ill
diagnosis that must be certified by a licensed Health Care Practitioner.
Chronically ill means an Insured who has been certified by a licensed Health
Care Practitioner as:
(a) being unable to perform, without substantial human assistance, at least two
of the six activities of daily living (ADLs) - bathing, continence, dressing,
eating, toileting, and transferring - for a period of at least 90 days; or
(b) being so severely cognitively impaired that the Insured requires substantial
supervision to protect the Insured from threats to his or her health and safety.
Under the Accelerated Death Benefit Rider for Long-Term Care, the percentage of
death benefit that is available each month is:
• up to 4% of the existing death benefit if you are confined to a licensed
Nursing or Assisted Living Facility, payable for up to 25 months; or
• up to 2% of the existing death benefit if you are receiving Home Health Care
or Adult Day Care, payable up to 50 months.
Payout Example: With a 4% death benefit advance, a 35-year-old nonsmoker
with $50,000 of coverage who is confined to a licensed Nursing or Assisted
Living Facility would receive $2,000 per month for up to 25 months. Each benefit
payment will reduce the face amount of the policy by 4% if benefits are paid for
confinement in a Nursing Facility or Assisted Living Facility. A 12-month
benefit period would mean a $24,000 reduction in coverage, and an adjusted face
amount and death benefit of $26,000. If all benefits are paid in 25 months, the
death benefit is depleted and coverage will end. With a 2% death benefit
advance, a 35 year old non- smoker with $50,000 of coverage who is receiving
Home Health Care or Adult Day Care services would receive $1,000 per month for
up to 50 months. A 12-month benefit period would mean a $12,000 reduction in
coverage, and an adjusted face amount and death benefit of $38,000. If all
benefits are paid in 50 months, the death benefit is depleted and coverage will
end. Additionally, if the Insured should die while this coverage is in force and
while benefits are being paid, the remaining death benefit proceeds will be paid
to the named beneficiary and no further payments will be made. Moreover, if the
entire death benefit proceeds are paid prior to death, coverage will end and
there will be no death benefit proceeds available upon death.
Extension of Benefits Rider
If all of the benefits of the life insurance coverage have been
depleted through the use of this Accelerated Death Benefit, the Rider allows for
a benefit Extension. For example, under the Accelerated Death Benefit Rider for
Long-Term Care, the percentage of death benefit available each month is 4% for
confinement in a licensed Nursing or Assisted Living Facility and 2% for Home
Health Care or Adult Day Care services. For a $50,000 death benefit, this
translates into $2,000 per month for 25 months if the Insured is confined in a
Nursing or Assisted Living Facility, and $1,000 per month for 50 months for Home
Health Care or Adult Day Care. The amount payable under this Extension feature
cannot exceed 100% of the Universal Life death benefit.
If after 25 months the Insured is still confined in a licensed Nursing or
Assisted Living Facility, and the death benefit has been depleted, the death
benefit will be extended on a month-to-month basis (provided the Insured meets
eligibility requirement) for up to an additional 25 months.
Similarly, if after 50 months the Insured still requires Home Health Care or
Adult Day Care, and the death benefit has been depleted, the death benefit will
be extended on a month-to-month basis (provided the Insured meets the
eligibility requirement) for up to an additional 50 months. In this example, the
$50,000 policy could pay a $100,000 benefit.
Activating Multiple Accelerated Death
Benefits
If an owner accelerates any death benefit under another Accelerated
Death Benefit (ADB) Rider such as Critical Care and/or Terminal Illness while
also accelerating the Accelerated Death Benefit Rider for Long-Term Care (LTC),
the maximum we will pay under all of the ADB Riders will not exceed 100% of the
death benefit for any one Insured.
Payout Example: With a 4% death benefit advance, a 35-year-old nonsmoker
with $50,000 of coverage who is confined to a licensed Nursing or Assisted
Living Facility (as previously noted) would receive $2,000 per month for up to
25 months. However, if the owner exercised another ADB option (such as Critical
Care or Terminal Illness) three months into the LTC acceleration, the remaining
death benefit available for future monthly payments for all exercised ADB
options (combined) would be $44,000 (22 months). Furthermore, if the owner
exercised the Critical Care option and depleted $22,000 of the remaining
$44,000, the owner would have $22,000 (11 months) of death benefit remaining for
long-term care. The total benefit period then for long-term care would have been
14 months.
exclusions
All benefits are subject to a 90-day “Elimination Period.” There is a
“Waiting Period” of 30 days from the Rider Effective Date for sickness
conditions. Benefits will only be paid for a sickness condition or Plan of Care
that begins after the “Waiting Period.” No benefits will be payable for any
sickness condition or Plan of Care that begins during the “Waiting Period.”
There is no “Waiting Period” for accidents.
We will not pay Rider benefits for care that is received or loss incurred as
a result of: (a) an intentionally self-inflicted injury, or attempted
suicide; (b) war or any act of war, declared or undeclared, or service in the
armed forces of any country; (c) treatment of the Insured’s alcohol, drug, or
other chemical dependency, except if the drug was sustained or acquired at the
hands of a physician, or while under treatment for an injury or sickness; or (d)
the Insured’s commission of, or attempt to commit, a felony; or an injury that
occurs because of the Insured’s involvement in an illegal activity.
We will not pay Rider benefits if the Confinement or service: (a) is
received outside the United States and its territories; (b) is provided by
ineligible providers; (c) is rendered by members of the Insured’s Immediate
Family; (d) is reimbursed by a state or Federal worker’s compensation plan,
Medicare, any other health insurance or plan, or any other governmental program,
except Medicaid; (e) would not be charged in the absence of insurance.
Limitations
We will not pay accelerated death benefits for Confinement or Home
Health Care or Adult Day Care services simultaneously, even if the Insured
otherwise qualifies for benefits. In any given month the Insured qualifies for
both benefits, we will pay either the Monthly Accelerated Death Benefit for
Confinement or the Monthly Accelerated Death Benefit for Home Health Care or
Adult Day Care services, whichever is higher.
The death benefit that is the basis for the “extended benefit” is the death
benefit amount at the time of the first acceleration of benefits under the
Accelerated Death Benefit Rider for Long-Term Care. This may or may not be the
death benefit at the time the extended benefit is utilized by the Insured.
This Accelerated Death Benefit Rider for Long-Term Care with Extension of
Benefits Rider may not cover all of the costs associated with long-term care
incurred during the period of coverage. Please carefully review all limitations
of the Rider as well as those of the Contract to which it is attached.
tax qualification notice
This rider is intended to provide a qualified accelerated death
benefit that is excluded from gross income for Federal Income Tax purposes under
the applicable provisions of the Internal Revenue Code in existence at the time
this Rider is issued. To that end, the provisions of the Rider and the Contract
are to be interpreted to ensure or maintain such tax qualification,
notwithstanding any other provisions to the contrary. We reserve the right to
amend this Rider or the Contract to reflect any clarifications that may be
needed or are appropriate to maintain such tax qualification or to conform this
Rider or the Contract to any applicable changes in such tax qualification
requirements. We will send you a copy of any such amendment.
If you refuse such an amendment, it must be by giving us written notice, and
your refusal may result in adverse tax consequences. Whether any tax liability
may be incurred when benefits are paid under this Rider could depend on whether
you are also the Insured and how the Internal Revenue Service interprets
applicable provisions of the Internal Revenue Code. As with any tax matter, the
Insured and any other recipient of this benefit should each consult a tax
advisor to evaluate any tax impact of this benefit.
Receipt of an accelerated death benefit MAY AFFECT MEDICAID and SUPPLEMENTAL
SECURITY INCOME (SSI). Without exercising this option, the mere fact that an
Accelerated Death Benefit Rider is part of the Insured’s Contract will not in of
itself affect the eligibility for these government programs. However, exercising
this option before applying for these programs, or while receiving government
benefits, may affect the Insured’s continued eligibility. Contact the Medicaid
Unit of the local Department of Public Welfare and Social Security
Administration Office for more information.
TAC-$aver Plus Universal Life Insurance is underwritten by Transamerica Life
Insurance Company.
If you have any questions about the plan, please call Customer Service at:
1-800-346-1608.
