Dependent Term Life Claims
Accelerated Life Benefit for Dependent Term Life
If your dependent:
- is diagnosed with a terminal condition, and
- has a life expectancy of twelve months or less,
Steps to file a claim for accelerated life benefit
Extended Life Insurance Benefit
Your Optional Term Life coverage may be continued without payment of any premiums if you are younger than 60 and:
- become totally disabled for six continuous months or more, and
- cannot be gainfully employed in any occupation.
You must apply for this benefit within 6-18 months from the onset of your disability.
Steps to file a claim for Extended Life Insurance Benefit
Accidental Death Benefit
Dependent Term Life also includes $5,000 accidental death and dismemberment (AD&D) benefit for each dependent covered by the policy. If your dependent dies as the direct result of an accidental bodily injury, the policy pays an additional AD&D benefit of $5,000 to you.
If your dependent has an accident and experiences one or more of the covered bodily losses as a direct result of the accident, you can apply to receive a benefit.
- Loss of hand by actual severance through or above the wrist.
- Loss of foot by actual severance through or above the ankle joint.
- Loss of sight in one eye resulting in total and permanent loss of vision that cannot be recovered by surgery or other means.
If one of the covered bodily losses occurs, you receive a benefit of $2,500. If two or more covered bodily losses occur at the same time, you receive a benefit of $5,000. Benefits are not paid if your dependent independently loses one or more fingers, one or more toes, or incurs a partial loss of sight.
Steps to file a claim for dismemberment benefits
You or your spouse may convert his or her Dependent Term Life Insurance policy to an individual life insurance policy without EOI during the first 31 days after group insurance ends:
- if your coverage ends for any reason,
- if they are no longer eligible for Dependent Term Life Insurance coverage, or
- in the event of your death.
If your covered spouse converts to an individual life insurance policy, the premium will cost more than your spouse’s Dependent Term Life Insurance.
Dependent children are not eligible for the conversion privilege.
Viatical Settlement Option
If your dependent is diagnosed with a terminal condition, you may enter into a Viatical Settlement. A Viatical Settlement pays the beneficiary a percentage of the Dependent Term Life benefits now. In exchange, the Viatical Settlement provider becomes the permanent beneficiary of the dependent's life insurance benefits at the time of death.
You will need to research and select a Viatical Settlement provider. Upon your dependent’s death, payment will be made to the viatical settlement provider if the Dependent Term Life insurance is still in force.