Survivor Benefits Program
- Issue Date: September 1, 1997
- Primary Contact: Director of Human Resources
- Responsible Member of Directorate: President and Director
- Responsible Office: Human Resources
The Institution makes available three survivor
benefits programs to all Regular employees . These coverages
consist of Group Term Life Insurance, Accidental
Death and Dismemberment (AD&D) Insurance, and a Burial benefit.
For someone with a life-threatening condition, there
is also the option of applying for a viatical settlement.
II. Group Term Life Insurance
A. Coverage is provided in the form of
non-contributory group Basic Life insurance in an amount equal
to the annual base salary rounded to the next $1,000. An eligible
employee may elect the lesser of $50,000 or 1 times annual salary.
The maximum coverage is $400,000. The amount of Basic Life Insurance
that applies to you is reduced beginning at age 65 based upon
the published schedule in the Certificate of Coverage.
III. Group Accidental Death and Dismemberment
An eligible employee may purchase additional
Supplemental Life insurance in an amount equal to 1, 2, 3, or
4 times the annual base salary, rounded to the next $1,000.
The cost is based upon an age-related premium, established on
January 1 of each year.
In the event of death, benefits are payable to
the employee's designated beneficiary.
B. An eligible employee may purchase Dependent
Life insurance for his/her spouse and/or children. Coverage
for the spouse is available in increments of $5,000, subject
to a maximum of $30,000 ($70,000 with satisfactory evidence
of good health). The cost is based upon an age-related premium.
Each and every eligible child over age 14 days
old may be covered for either $2,000 or $5,000. The cost is
based upon a per capita fixed rate for each level of coverage.
In the event of death of any covered dependent,
the employee is the beneficiary.
C.Waiver of Premium
If an employee suffers Total Disability (as defined
by the Plan), a Waiver of Premium on her/his Life Insurance
will continue the coverage if:
1.the employee is less than 60 years
The Waiver of Premium will cease at the earliest
2.proof of disability is furnished to the carrier
as specified in the Plan.
1.conversion of Life Insurance;
Waiver of Life Insurance premium applies to only
the employee's Life Insurance coverage. This does not apply to
Dependent Life or Accidental Death and Dismemberment (AD&D)
2.failure to furnish proof of Total Disability;
3.employee no longer suffers from Total Disability;
4.attainment of age 65.
D. Continuation of Coverage
If an employee is absent from regular employment
due to one of the following reasons, the insurance may be continued
up to the maximum period of time stated in the Plan.
1.Injury or illness: until the end of
12 consecutive months beginning on the date of first absence
from work due to the injury or illness.
E. Termination of Coverage
2.Temporary layoff due to lack of work: until
the end of the month in which the layoff commenced.
3.Approved leave of absence (other than Family
or Medical Leave): until the end of the month following the
month in which the leave of absence commenced.
Coverage ceases upon termination of employment,
transfer to an employment status not entitled to coverage, the
last day of the period for which the last required premium is
paid retirement, or a Dependent no longer meets the definition
of a Dependent. Once coverage has ceased, the individual may
convert any or all of her/his coverage to an individual policy.
Such conversion must be made by making application and the first
premium payment, within 31 days of the date the group coverage
terminates. The individual policy will be issued at the insurance
company's regular rates. No proof of insurability is required.
F. For details about eligibility, enrollment,
changes in coverage, and benefits, refer to the Summary Plan
A. Under this policy an eligible employee
may purchase coverage at any time for themself alone (Individual
Plan) or for themself and their spouse/child(ren) (Family Plan),
providing coverage remains in effect for at least one year. In
order for children to be eligible, they must be dependent upon
the employee for support and under the age of 20, full-time students
up to age 24, or disabled beyond age 24.
B. The Accidental Death and Dismemberment portion
of the policy covers the employee and dependent(s) for injuries
which result in death or dismemberment within one year from
the date of accident. The Permanent Total Disability portion
of the policy covers employees only for injuries which result
in total and permanent disability within 180 days of accident.
An Education Benefit provides additional financial assistance
to a dependent child who is an enrolled full-time, post-high
school student on the date of the injury which results in the
employee's death and/or for a spouse who enrolls in a professional
or trade training program within 30 months of the employee's
death in order to obtain an independent source of support.
C. An employee may purchase coverage in multiples
of $10,000 up to $500,000. Amounts in excess of $200,000 may
not exceed ten times base annual pay. The cost for the employee
alone is $.18 per $10,000/pay period; for Family coverage the
cost is $.27 per $10,000/pay period.
D. If enrolled in the Family Plan, dependents
are insured as follows:
||% of Employee's Coverage
|Spouse (no Children)
|Spouse (with children)
|Child (no spouse)
|Child (with spouse)
E. In the event of an employee's death
while insured under the Family Plan, the Family Plan coverage
will remain in effect for 90 days following the last premium payment
at no cost to the family.
IV. Burial Benefits
F. In the event of death from a common accident
of both the employee and the insured spouse within 30 days of
each other, the spouse's benefit amount will be increased to
equal that of the employee.
G. Exclusions: Coverage is not provided for losses
1.War or act of war or accident occurring
while in the military, except if in active duty for a period
of less than 60 days in the Reserves or National Guard;
H. Benefits are paid to the designated beneficiary
in the event of the employee's death, to the employee in the event
of the employee's dismemberment or disability, or to the employee
in the event of a loss by an insured family member.
2.Flying in any aircraft leased, owned or operated
by the Institution, or riding in, boarding or alighting from
any aircraft except while a passenger on a previously tried,
tested and approved civilian aircraft being used for the transportation
3.A loss to which sickness or disease is a
I. For provisions concerning change in status,
including leaves of absence, see Definitions/Types
A. In addition to enrollment in the Group
Term Life and AD&D insured plans, regular employees are covered
for Burial Benefits. This coverage is also provided to employees
who retired under the Institutions Retirement Plan on or after
their Normal Retirement Date with at least 10 years of service
or on their Early Retirement Date with at least 20 years of service.
Employees who retired prior to July 1, 1982, are not covered by
V. Viatical Settlement
B. The Institution's Burial Benefit is in the
amount of $2,500 and is payable to the designated beneficiary
of the deceased. If no beneficiary has been designated, based
upon the individual circumstances, the Institution will determine
to whom the benefit will be paid. According to tax law, this
benefit must be recognized as taxable income by the recipient.
C. When notified of the death of a covered individual,
the Human Resources Office will prepare a letter of condolence
to the spouse or next of kin. Whenever practical and appropriate,
this letter, along with the $2,500 check, will be hand-carried
to the recipient by either the employee's supervisor or a member
of the Human Resources Office.
For an employee facing a life-threatening illness,
s/he an option to apply for a viatical settlement. A "viatical
settlement" is a financial resource obtained by
selling one's group and/or individual life insurance policy. Application
or information is obtained by contacting
Viaticus, Inc. at 1-888-200-5204. (Viaticus is a subsidiary
of CNA Insurance Companies.)
A. This is a confidential service between
the employee and Viaticus. No one at WHOI needs to know or be
involved in the process.
B. The proceeds of the "sale" of the life insurance
policy are generally from 50 to 85 percent of the face value.
No further premium payments are made by the applicant/employee.
C. Virtually any life insurance policy may qualify.
D. The settlement is an option for an individual
with a life expectancy up to five years.
you require assistance in the interpretation of this procedure,
please contact your Human Resources Representative.
Last updated: May 7, 2008