Group Universal Life Insurance (2018)

 
 

Benefits Summary Plan Description

Group Universal Life Insurance (2018)

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Group Universal Life Insurance

Employees can purchase an added measure of protection for themselves through Prudential. Group Universal Life (GUL) Insurance provides benefits that go beyond term life insurance. GUL helps protect your family and builds a secure financial future.

Any coverage purchased through GUL is in addition to Basic Term Life Insurance coverage. For more information, download the plan document (coming soon).

Coverage Options
       
Cash Accumulation Fund
       
Evidence of Insurability
       
Additional Benefits
       
Limitations and Exclusions

 

Coverage Options

Employees can purchase Group Universal Life Insurance in amounts equal to 1, 2, 3, 4, 5, 6, 7, or 8 times their annual compensation, to a maximum of $4 million. Additional information can be found in the Plan Summary.

Employees pay the full cost of coverage of Group Universal Life Insurance, which is purchased on an after-tax basis.

GUL premiums are subject to change throughout the year due to changes in salary.


 

Cash Accumulation Fund

In addition to providing a life insurance benefit for your loved ones, the GUL features a Cash Accumulation Fund that allows you to earn interest on a tax-deferred basis.

You can:

  • Earn guaranteed interest - The Cash Accumulation Fund has a guaranteed interest rate that will never be less than 4 percent.
  • Keep it even after your employment with Leidos ends - Insurance can continue at the full coverage amount up to age 100, on a direct-billed basis.
  • Enjoy tax benefits - Earnings and interest credited on contributions to the Cash Accumulation Fund are tax-deferred. The death benefit (typically the face amount of insurance plus the Cash Accumulation Fund) is generally income tax-free to beneficiaries.
  • Access funds easily - You can take loans or make withdrawals from the cash accumulation fund at any time and for any reason. You can also use the Cash Accumulation Fund to pay premiums or purchase fully paid up coverage.
  • Qualify for special benefits if you become disabled or terminally ill - Our Waiver of Premium provision for qualifying disabled employees and the Accelerated Benefit Option for terminally ill employees provide extra support when it’s needed most.

If you elect to cancel coverage or withdraw from your Cash Accumulation Fund, you must complete the Owner Transaction Form.


 

Evidence of Insurability

When an employee enrolls for Group Universal Life (GUL) Insurance, he or she will be required to provide evidence of insurability (EOI) if he or she:

  • Elects coverage in excess of the lesser of 3x annual salary or $500,000 when first eligible to enroll;
  • Elects to increase coverage by more than one benefit level or any amount exceeding 3x annual salary during Open Enrollment or within 31 days of a qualified life event; or
  • Elects to enroll for coverage after having waived coverage when first eligible

If the elected amount requires EOI, Prudential will either mail or email the required form and instructions for completion. Prudential may 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. Group Universal Life Insurance coverage will be provided at the existing level while the decision on the participant's evidence of insurability is pending.


 

Additional Benefits

Group Universal Life Insurance also pays additional benefits, including:

If an employee 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 Term Life Insurance and Group Universal Life Insurance). The maximum accelerated benefit amount is $250,000.

Any remaining benefit amount will be paid to the employee'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.


 

Limitations and Exclusions

Group Universal Life Insurance will not be payable if the employee commits suicide within the first two years of being covered.

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