What are Life Insurance benefits?

"How to File a Claim"

If you die while insured, your beneficiary may receive a Life Insurance benefit. If you become terminally ill, you may be eligible to receive a benefit. Any benefit amount is based on your base hourly rate.

Eligibility for benefits

The Company provides Life Insurance:

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Benefit amount upon death prior to age 65

If you are under age 65 and die from any cause while insured, your beneficiary will receive the Life Insurance amount shown on page 218 of the CBA, Volume II or on page 104 of "Your Employee Benefits" Handbook.

The amounts shown on the pages referenced above will be reduced by any amount of insurance paid prior to your death due to terminal illness.

If you last worked before September 29, 2003, your Life Insurance amount is shown in the Collective Bargaining Agreement in effect when you last worked.

Benefit amount after age 65

When you reach age 65, your Life Insurance will be gradually reduced if you are insured, but not below a Continuing Group Life Insurance amount if you’re eligible for that coverage.

If you are insured at age 65 as a retiree, the reduction each month after age 65 is 2% of the amount in force at age 65.

If you are insured after age 65 other than as a retiree, your Life Insurance will increase as shown in the table (on page 104 of "Your Employee Benefits" Handbook) if your base hourly rate increases. Your insurance, however, will be reduced by 2% of that insurance amount for each month you are over age 65. Nevertheless, until age 70 your insurance will not be reduced below 65% of the amount that was in force at age 65 adjusted to reflect any pay increases you may have received after that age. At age 70, your insurance will not be reduced below 50%. Further reductions are made at age 75, 80 and so on.

If you become insured after age 65, your Life Insurance will be determined as shown in the table, reduced by 2% of that amount for each month you are over age 65, as though you had been insured since age 65. Nevertheless, your insurance will not be reduced below the amounts described above as long as you have Company-paid coverage beyond age 65 other than as a retiree.

Continuing Group Life Insurance amount
If you are insured at age 65 and have 10 or more years under the Retirement Plan and the Life and Disability Insurance Program, your Life Insurance is continued by the Company at a reduced level until you die.
In determining whether you have the required 10 years to be eligible for Continuing Group Life Insurance, your years under the Retirement Plan and the Life and Disability Insurance Program are the sum of:

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Your Continuing Group Life Insurance amount

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Your Life Insurance in force at age 65 or later (based on your last day worked)

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Your years under the Retirement Plan and the Life and Disability Insurance Program (as described above)

How your benefits are paid

As soon as satisfactory proof of your death is submitted to the carrier, your life insurance benefit will be paid to your beneficiary(ies). If $10,000 or more is payable to a beneficiary, an interest paying money market account will be established under the provisions of UNICARE Control Plus Account #1-800-551-7564 Mail: P.O. Box 9128 Boston, MA 02117. A beneficiary may withdraw the account balance at any time. Additional information will be provided to your beneficiary in the event of your death.

At your death, the carrier may deduct up to $5,000 from the benefit - to be paid to any person or persons who have incurred burial expenses on your behalf.

Naming a beneficiary

You may name a beneficiary you want to receive your Life Insurance. You have the right to name the beneficiary of your choice - and to change that beneficiary at any time by notifying the carrier.

Your beneficiary will be the last designation indicated on the carrier's records. When the carrier receives notice of a beneficiary change, the change takes effect on the date the notice was signed even though the carrier may receive the notice of change after your death. If the carrier makes a payment on account of your death before receiving the notice of change, however, the carrier will not be liable for another benefit payment.

If your last named beneficiary dies before you do, or if no beneficiary designation is in effect at your death, your insurance will be paid, in this order, to:

If there are no such survivors, your insurance will be paid to the executor or administrator of your estate.

Be sure to update your beneficiary designation on file with the carrier. If you don't, your benefit could be delayed or paid to someone other than the person you want to receive the benefit.

Life insurance is not assignable, unless the assignment is made in writing and consented to by the insurer in writing.

Benefit If You Become Terminally Ill

Effective January 1, 1997 you may elect to receive a portion of your life insurance proceeds, up to 50% of coverage if you become terminally ill. "Terminal illness" means an injury or sickness expected to result in death within one year without any reasonable prospect of recovery as determined by the insurer.

The amount of life insurance remaining in force will be reduced by the amount paid. This option does not apply to individuals who:

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Have irrevocably assigned their life insurance or when all or a part of life insurance is to be paid to a former spouse as a part of the divorce decree.

Converting to an individual policy

If you leave the Company or no longer are eligible for coverage, you can convert, within 31 days of the time coverage ends, to any individual life insurance policy then customarily issued by the carrier except term insurance. This is done by making application and paying the required premium to one of the UNICARE Life and Health Insurance Company/John Hancock offices. The maximum amount of the individual policy will be equal to the amount of your Life Insurance in force when you left the Company, including Survivor Income Benefits.