Will taxes be withheld from my disability benefits?

Yes, taxes will be withheld from all disability payments just as they are from your paychecks.

Withholding will be based on your current exemption status on record with the Company. When your exemption status is not available, the withholding amounts will be determined as if you were single and claiming zero exemptions until the claims processor is provided with Form W-4.

If you wish to change your exemption status while you are receiving disability benefits, you may contact the claims processor regarding the submission of updated Form W-4. Changes submitted to the claims processor will take effect as soon as possible for future benefits only. Your exemption status will be obtained from the Company payroll records each time you file a claim. For that reason, you must submit Form W-4 changes for each claim if you desire a different level of tax withholding than appears on Company payroll records. Any Form W-4 changes that are submitted to the claims processor will not affect your Company payroll records.

Your disability benefits also will be reduced by the amount of any applicable court order directing the Company to withhold from your wages or benefits. Court orders for dependent support, bankruptcy, tax levies, garnishment, etc. which are on file with payroll services or served directly upon will apply to your disability benefits. The amount withheld will be sent by UNICARE to the court involved. An explanation of withholding will be included on your disability benefit draft.

Will taxes be withheld from my disability benefits?

Yes, taxes will be withheld from all disability payments just as they are from your paychecks.

Withholding will be based on your current exemption status on record with the Company. When your exemption status is not available, the withholding amounts will be determined as if you were single and claiming zero exemptions until the claims processor is provided with Form W-4.

If you wish to change your exemption status while you are receiving disability benefits, you may contact the claims processor regarding the submission of updated Form W-4. Changes submitted to the claims processor will take effect as soon as possible for future benefits only. Your exemption status will be obtained from the Company payroll records each time you file a claim. For that reason, you must submit Form W-4 changes for each claim if you desire a different level of tax withholding than appears on Company payroll records. Any Form W-4 changes that are submitted to the claims processor will not affect your Company payroll records.

Your disability benefits also will be reduced by the amount of any applicable court order directing the Company to withhold from your wages or benefits. Court orders for dependent support, bankruptcy, tax levies, garnishment, etc. which are on file with payroll services or served directly upon will apply to your disability benefits. The amount withheld will be sent by UNICARE to the court involved. An explanation of withholding will be included on your disability benefit draft.

When does coverage end?

Coverage will end when you no longer are eligible for the Program.

 The description for each benefit area under the Program includes a discussion of when coverage ends. Additionally, coverage under the Life and Disability Insurance Program automatically will end on the earliest of:

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What other circumstances might affect benefits?

This section has summarized your Life and Disability Insurance Program coverages. Additional circumstances, however, might affect your benefits.

Accident or disability

It is important to remember these things about disability coverage for an accident or sickness:

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Assigning your benefits

You and your beneficiary may assign your Life Insurance, Accidental Death and Dismemberment Insurance and Optional Group Life Insurance by making your assignment in writing with the carrier. Neither you nor your survivors may assign your Survivor Income Benefits, Dependent Life Insurance, Optional Accident Insurance, Safety Belt User Benefits, Accident and Sickness Benefits or Extended Disability Benefits.

Certain court orders relating to domestic relations matters could require that your benefits (or a part of your benefits) be paid to someone else - your spouse or children, for example. This could apply to benefits paid to you as well as to any beneficiary. If the carrier or claims processor determines that the court order qualifies, payments will be made according to the order. As soon as you are aware of any court proceedings which may affect your Life and Disability Insurance Program benefits, contact the National Employee Services Center at 1-800-248-4444.

Attachment of Survivor Income Benefits

To the extent permitted by applicable law, Survivor Income Benefits are not subject to attachment or other encumbrance or subject to the debts or liability of any survivor.

Filing claims

No benefits can be paid until you or your beneficiary files a claim. If you have questions, contact the National Employee Services Center at 1-800-248-4444.

If a disability benefit is overpaid

If a disability benefit is overpaid for any reason, you will receive a written notice that you should repay that amount directly to the claims processor.

If you do not pay that amount promptly, the claims processor has the right to deduct the overpaid amount from future benefit payments. At the claims processor's request, the Company may deduct the overpaid amount from your future paychecks. However, repayment of overpayments caused solely by Company or carrier error is only required if notice is given within one year from the date an overpayment is established.

If you or your beneficiary is incompetent

If you or your beneficiary is incompetent or otherwise incapable of giving a valid release, the carrier or claims processor may withhold payment until a guardian is appointed. In the case of weekly or monthly benefits, payment may be made to any relative by blood or marriage or to any other individual or institution appearing to the carrier or claims processor to have assumed custody of the person. The liability of the carrier or claims processor shall be fully discharged to the extent of such payment.

Naming a beneficiary

You may name a beneficiary you want to receive your Life Insurance, Accidental Death and Dismemberment Insurance, Optional Group Life Insurance and Optional Accident Insurance if you die. You have the right to name the beneficiary of your choice - and to change that beneficiary at any time by notifying the carrier. When the carrier receives notice of a beneficiary change, the change takes effect on the date the notice of change was signed even though the carrier receives the notice after your death. If the carrier makes a payment on account of your death before receiving the notice of change, however, it will not be liable for another payment.