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Basic Term Life Insurance

Basic Term Life Insurance may provide a benefit to employees and their eligible dependents if any were to die while the employee was working for Leidos.

How it Works
       
Evidence of Insurability
       
Additional Benefits
       
Limitations and Exclusions



How Basic Term Life Insurance Works

Eligible employees automatically receive Basic Term Life Insurance coverage for themselves and their eligible dependents, including their spouse or registered domestic partner* and their dependent children*

Leidos pays the full cost of Basic Term Life Insurance coverage.

* To qualify for this benefit, a stepchild or registered domestic partner's child must reside with the Leidos participant.

Employee Coverage

The amount of coverage that an employee may receive is based on his or her classification.

CLASS BASIC TERM LIFE INSURANCE BENEFIT DETAILED PLAN INFORMATION

Class 1 — All regular full-time employees working at least 30 hours per week and regular part-time employees working 12 – 29 hours per week and who are benefit eligible

1 times annual compensation, rounded to the next higher $1,000, to a maximum of $500,000 (Benefits for part-time employees will be based on their regularly scheduled hours.)

Evidence of Coverage

Class 5 — All eligible employees waiving Basic Term Life Insurance coverage amounts over $50,000

$50,000

Evidence of Coverage


"Annual compensation" means an employee's annual wage or salary as reported by his or her employer for the work performed as of the date of loss. It does not include earnings received as bonuses, overtime pay or other extra compensation.

Employees Ages 70+

When an employee reaches age 70, the total amount of the employee's Basic Term Life Insurance benefit will be reduced by 35%. Once an employee reaches age 70, the Basic Term Life Insurance coverage for the employee's spouse or domestic partner will end.

Basic Term Life Insurance benefit amounts over $50,000 are subject to income tax. The value of an employee's life insurance coverage over $50,000 will be added each year to his or her W-2 form as taxable income. This is called "imputed income."

The employee may choose to waive any coverage over $50,000 at any time. However, if he or she waives this excess coverage and later wants to reinstate it, the employee may have to provide evidence of insurability to CIGNA.

Dependent Coverage

Coverage for an employee's eligible dependents equals $2,000 per person. Under the Basic Term Life Insurance plan, eligible dependents may include the employee's spouse or registered domestic partner* and/or their dependent children**. See Eligibility in the Participating in the Plans section for more information about eligibility requirements.

*Life insurance eligibility for a spouse or registered domestic partner is based on the employee's age. Once an employee reaches age 70, coverage for the employee's spouse or domestic partner ends.

**To qualify for this benefit, a stepchild or registered domestic partner's child must reside with the Leidos participant.



Evidence of Insurability

If an employee wants to increase his or her Basic Term Life Insurance coverage after having waived coverage over $50,000, he or she will be required to provide evidence of insurability document.

The plan's underwriter will request that the employee complete a brief medical questionnaire. He or she may need to provide additional information.

Any evidence of insurability must be satisfactory to the plan's underwriter before coverage can be approved. The plan's underwriter uses standard underwriting rules and procedures for reviewing applications and has sole authority to approve or reject any application on the basis of health. Basic Term Life Insurance coverage will be provided at the existing level while the decision on the participant's evidence of insurability is pending.



Additional Benefits

Basic Term Life Insurance also pays additional benefits, including:

  • Accelerated Benefits — If an employee or his or her spouse or registered domestic partner becomes terminally ill and is not expected to live for more than 12 months, he or she may request an accelerated benefit equal to a maximum of 50% of his or her combined life insurance benefit (Basic Life Term Insurance and Supplemental Term Life Insurance). The minimum accelerated benefit amount is $10,000 and the maximum is $250,000.

    Any remaining benefit amount will be paid to the employee's, spouse's or registered domestic partner's designated beneficiary upon his or her death. For a covered person to qualify for an accelerated benefit, two doctors must certify his or her condition.

  • Seat Belt(s) Benefit — If an employee dies as a direct result of an accident and the following conditions are met, CIGNA will pay a seat belt benefit to the designated beneficiary. The benefit will be at least $1,000, to a maximum of 10% of the employee's benefit or $10,000, whichever is less. An employee's beneficiary will receive the seat belt benefit if:
    • The private passenger car the employee was driving/riding in was equipped with seat belts;
    • The seat belt(s) was in actual use and properly fastened at the time of the covered accident; and
    • The position of the seat belt(s) was certified in the official report of the covered accident or by the investigating officer. A copy of the police accident report must be submitted with the claim. If certification is not available but it is clear that the employee was properly wearing a seat belt, CIGNA will pay the additional benefit. If, however, certification is not available and it is not certain that the employee was wearing a seat belt, then the benefit will be fixed at $1,000.

    No benefit will be paid if the accident causing the employee's death occurred as a result of participation in a race, or a speed or endurance test.

    "Private passenger car" means a validly registered four-wheel vehicle limited to private passenger cars, station wagons, Jeeps, pick-up trucks, and van-type cars.



Limitations and Exclusions

Benefits for part-time employees will be calculated using their pay for a standard number of hours worked per week.