Back

Supplemental Term Life Insurance

Employees can purchase an added measure of protection for themselves and their eligible dependents. Any coverage purchased through Supplemental Term Life Insurance is in addition to Basic Term Life Insurance coverage.

For more information, download the Supplemental Term Life Insurance document.

How it Works
       
Evidence of Insurability
       
Additional Benefits
       
Limitations and Exclusions



How Supplemental Term Life Insurance Works

There are two types of coverage under Supplemental Term Life Insurance:

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

Supplemental Term Life Premiums are subject to change throughout the year due to changes in salary and/or age category.

* Life insurance eligibility for a spouse or registered domestic partner is based on the employee's age.

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

Employee Coverage

Employees can purchase Supplemental Term Life Insurance in amounts equal to 1/2, 1, 2, 3, 4, 5 or 6 times their annual compensation, to a maximum of $1,500,000. Additional information can be found in the 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 Supplemental Term Life Insurance benefit will be reduced by 35%.

Dependent Coverage

If employees elect Supplemental Term Life Insurance for themselves, they can also elect supplemental coverage for their eligible dependents. In no case may covered employees be also covered as dependents, and dependents may not be covered more than once.

Spouse or Registered Domestic Partner Coverage

Employees can purchase Supplemental Term Life Insurance for their spouse or registered domestic partner*. Coverage is available for:

  • $10,000;
  • $25,000; and
  • $50,000.**

* Life insurance eligibility for a spouse or registered domestic partner is based on the employee's age.

** Refer to Evidence of Insurability for more information.

Child Coverage

Employees can purchase Supplemental Term Life Insurance for their eligible children, including their registered domestic partner's children*.

Coverage is available for:

  • $5,000; and
  • $10,000.

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

Requirements for Dependent Coverage

On the date life insurance would otherwise be effective, if an eligible spouse, registered domestic partner or dependent child is:

  • an inpatient in a hospital, hospice, rehabilitation center, convalescence center, custodial care facility, or
  • confined to his or her home under the care of a physician

Then life insurance will become effective on the date he or she is no longer an inpatient in these facilities or confined at home



Evidence of Insurability

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

  • Elects coverage in excess of $750,000 when first eligible to enroll;
  • Elects to increase coverage by more than one benefit level or any amount exceeding $750,000 during Open Enrollment; or
  • Elects to enroll for coverage after having waived enrollment when first eligible or during Open Enrollment.
  • Elects supplemental coverage in excess of $25,000 for his or her spouse or registered domestic partner.

Completed EOI forms should be submitted to Enterprise Shared Services via fax at 1-865-425-5272 or mail to P.O. Box 2502, Oak Ridge, TN 37831.

The plan's underwriter may request that the employee and/or his or her spouse or registered domestic partner, if applicable, 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. Supplemental 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

Supplemental 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 Term Life 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 designated beneficiary upon his or her death (The employee is automatically the beneficiary for any covered dependent). 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 participant'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

Supplemental Term Life Insurance will pay benefits limited to an amount equal to all contributions paid for coverage, without interest, if an employee or his or her spouse or registered domestic partner 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.