Understanding Group Life Insurance:

Transcription

1 Liberty Mutual Insurance Group Benefits FOUNDATION for success Understanding Group Life Insurance: A Guide for Producers

2 Using this guide: when discussing group life insurance policyholder always means the employer. Group life insurance programs play an important role in helping companies attract and retain talented employees. As an advisor, you can offer meaningful advice to your clients based on your understanding of group life plans. Group Life Insurance a Critical Product According to a LIMRA study, 1 life insurance ownership in the United States is at a 50-year low. Currently, 3 in 10 households carry no life insurance and half of households believe they are underinsured. Increasingly, households rely solely on their employers group insurance programs to provide important financial protection to their families 37 percent in 2010, up from 32 percent in These statistics suggest employers have a vital interest in offering a well-administered program of group life benefits. However, coverage is about more than just collecting premiums and paying claims. For an employer, administration can be complex and group life insurance coverage problems may be exposed at the worst possible time. This guide is intended to help you clarify some of these issues for your clients and includes: Questions to ask a client to understand their administrative processes and service needs Questions to include in requests for proposals (RFPs) to group life carriers Employer administrative responsibilities, such as coverage for terminated employees, beneficiary designation, and assignment record keeping Key aspects of transferring a group life program to another carrier Detailed information on waiver of premium and continuation of coverage Frequently asked questions related to group life coverage Key success factors to look for in a group life carrier Group Life By the Numbers The most frequently offered group benefit in Offered by more than 98% of employers with 500 or more employees 2 Nearly $19 billion of In-force premiums 3 More than $2.5 billion in annual sales 3 37% of households rely solely on group life insurance programs for coverage 1 With this information, you will be able to provide valuable guidance to your clients and help them identify the group life insurance carrier that best meets their needs. 1 Household trends in U.S Life Insurance Ownership, LIMRA, LIMRA Voluntary Worksite Benefits: Penetration & Market Potential, LIMRA 2009 U.S. Group Life Insurance Annual Review. 1

3 Understanding Your Client s Group Life Insurance Program While two companies may have similar employee populations, their financial, plan, and service needs for group life programs may be very different. Questions to discuss with an employer that are addressed in this guide could include: How much does your human resources or benefits staff interact with the family and beneficiary(ies) when a claim is submitted? What is your current carrier s role during the claim process does the claim team contact beneficiaries directly? Do you also offer group long-term disability (LTD) coverage? If so, does your current program include disability continuation or waiver of premium provisions? Is the waiver of premium process integrated into the carrier s administration of LTD services? Does your program include portability and conversion provisions? If so, are all employees eligible or only certain groups (such as employees versus employees and dependents)? How do you manage enrollment, evidence of insurability, and beneficiary designations? Do employees complete paper forms or submit information online? Does your plan allow for assignments? If so, what types of assignments are accepted? What support services are currently offered with your group life program (such as grief and loss counseling, financial and legal assistance, or will preparation)? How often are they used? A clear understanding of how a client currently administers its program will be useful when it s time to review options or solicit proposals. Notes: 2

4 Finding the Right Solution: Your clients may ask for assistance in selecting providers for their group life insurance programs. A comprehensive understanding of a carrier s approach to group life insurance might uncover some meaningful differences. Including questions about administration or case management in a client s RFP will help clarify which organization will best meet the client s needs. A solid grasp of the underwriting processes and industry preferences of carriers will help you better represent your clients diverse needs. Administration These questions focus on the level of administrative support the carrier provides, both during program implementation and for day-to-day administration. Beneficiary designations: Will you accept the existing beneficiary designations? Who maintains designations the policyholder, the carrier, or a third party? How will beneficiary designations be transferred? Are there fees to transfer records to the policyholder or a new carrier? Will transfers be managed electronically or as paper records? Assignments: Will you accept existing assignments? If so, what types are accepted? Who maintains the assignments the policyholder, the carrier, or a third party? Do you have an integrated process to initiate waiver of premium claims for employees out on long-term disability? What ancillary services are offered with your program (such as travel assistance or will preparation)? What informational resources are available to employers and employees? Case Management Questions such as these can gauge the level of support the carrier provides your client as well as beneficiaries and family members when a claim is submitted. When a claim is submitted, how, specifically, do you work with the employer? Are claim specialists trained to work directly with the beneficiary(ies) and families? Do beneficiaries have direct access to a designated case manager throughout the claim process? How does the case manager support the family members and beneficiaries of the insured? Do you provide guidance or direct assistance for helping beneficiaries apply for Social Security death benefits? Can you supply statistics addressing timelines and success rates? What types of additional services such as grief and loss or financial and legal counseling or other tools are available to beneficiaries? Are retained-asset accounts used to provide insurance benefits to beneficiaries? Are details of retained-asset accounts clearly spelled out in a manner beneficiaries can understand? Do you offer financial service products such as annuities, mutual funds, etc., to beneficiaries? 3

5 Finding the Right Solution: (continued) Underwriting A clear understanding of what a carrier s underwriters need to know puts you in a position to help ensure that issues will be addressed. There are three phases to the underwriting process: Collection obtaining the information and data needed to determine the appropriate rate(s) Analysis crunching the numbers and completing a risk analysis of the collected information Developing and quoting pricing, terms, and conditions that will provide a financially stable plan Information shared during the collection and analysis phases will determine the final quote. Key topics to discuss with your clients include: Company plans and strategies what is it they want to accomplish? How do they see themselves today? Corporate attitude toward benefit plans are they perceived as positive recruiting and retention tools or solely as regulatory and marketplace necessities? How do they see group life insurance fitting into benefit plans? What are their benefit plan costs today? Long-term goals where are they going? Does the current plan design fit the employer and employee needs? Questions an underwriter will consider when determining a quote include: Quoting Group Life What Do Underwriters Need? When requesting a proposal, the information you provide is key to meaningful quotes! Who s covered a complete employee census with: Date of birth Gender Salary Covered benefit Class indicator Four years of experience information including: Enrollment (by year) Rates (by year) Paid premiums and claims Volume by year of open waiver claims and disabled employees Copies of existing contracts, premium statements, and renewal positions Is the experience predictive of what we expect going forward? Are our assumptions credible and realistic? The program information and other insights you provide to the carrier are critical to the underwriting process. The impact of missing information can be substantial. If the underwriter has questions for which answers are not available from the employer or prior carrier, he or she must make assumptions based on what is known. In such instances the underwriter will generally make conservative assumptions, which may affect plan costs. 4

6 When an Employer Changes Carriers When group life insurance products are placed with a new carrier, transitional issues may arise. As an informed advisor, you have an understanding of key issues related to transitioning a group life insurance program between carriers that will help your client better manage the change and its impact on employees. Transfer of Coverage: Employer To-Dos To effectively manage the transfer-of-coverage process, prior to the effective date with the new carrier, an employer should: File waiver of premium claims with the current carrier on behalf of all disabled employees if there is a waiver of premium provision in the policy Make a determination if certain employees must also file for conversion to individual policies Provide the new carrier with a list of individuals not actively at work, including, but not limited to: Full name Date of birth Social Security Number Class designation Last day worked The reason for each individual s absence Current coverage Obtain agreement (through transfer-of-coverage letter or policy provision) from the new carrier to extend coverage to employees not actively at work on the effective date, due to their own disability The Actively-at-Work Provision Communicate program changes to active employees, such as coverage amount increases, decreases, or new services Inactive Employees Inactive employees can present challenges when a group life insurance program is transitioned, as the life contract typically includes an actively-at-work provision. Under this provision, an employee must be actively at work as of the new policy s effective date to be eligible for coverage. However, an employer can work with carriers to ensure that employees not actively at work maintain group coverage after the program is transferred to a new carrier. This discussion needs to occur during the sales process. Carriers can address coverage for employees not actively at work with varied methods: An actively-at-work provision protects the carrier against the risk of antiselection which may occur if unhealthy employees absent from work are covered under the plan. The actively-at-work provision applies at all times, not just when coverage transfers from one carrier to another. An administrative letter provided to the employer outlining which individuals not actively at work may be covered under the new program, for what amount, and for how long An active employment definition in the policy that covers employees out of work on an effective date due to vacation days, scheduled nonworking days, etc. A specific policy provision sometimes called continuity of coverage, no loss, no gain, or transfer of coverage which extends coverage to employees not actively at work on the new policy effective date 5

7 When an Employer Changes Carriers (continued) Generally there is a specified extension-of-coverage period during transition addressing employees who are not actively at work. The length of the extension of coverage can depend on whether an employer s group life insurance policy has waiver of premium or disability continuation provisions or both. Waiver of premium provides continued coverage for totally disabled employees. (See Spotlight on pages ) Under the waiver of premium provision, most employees who are totally disabled at the time of the takeover will remain covered by the prior carrier. Disability continuation also provides continued coverage for disabled employees. (See page 11.) When a case has a disability continuation provision, the takeover of the employees who are disabled needs to be negotiated with the new carrier during presale discussions. When transfer of coverage occurs, some employees may not qualify for waiver of premium under a policy provision. Reasons for coverage termination can include age, not meeting the definition of disability, or absence for nondisabling reasons such as leaves covered under the federal Family and Medical Leave Act. During the presale process and prior to the effective date, an employer should provide the new carrier detailed information about any employees not actively at work to determine who will be covered. An employee who has not returned to work by the end of the coverage extension period will no longer be covered under the employer s group plan. The employee is eligible to convert to an individual life policy as long as the conversion application is filed and the premium is remitted within 31 days of coverage termination. The employer is responsible for notifying an employee of his or her right to convert coverage. Notes: 6

8 Spotlight: Tax Issues in Group Life Insurance Group life insurance offered through an employer may result in taxable income. As an advisor, you have an opportunity to provide your client with a basic understanding of the types of group life insurance plans that may be taxable, so that the appropriate professional guidance can be obtained. Imputed Income When an employer provides group life insurance to employees, taxable income may result, which must be included in the employee s W-2 statement. This income is known as imputed income. The following may result in the employer having to report imputed income for employees: Employer partially or fully paid coverage of more than $50,000 Employer partially or fully paid dependent coverage of more than $2,000 Employee-paid coverage rates that straddle those found in Table I of Section 79 of the Internal Revenue Code If the plan is considered to be discriminatory If insurance is provided to key employees Discriminatory Plans A group life insurance plan that meets the following conditions may be considered discriminatory, as plan design features such as eligibility and available benefit amounts favor key employees: The plan benefits fewer than 70 percent of all employees. More than 15 percent of all participating employees are key employees. The plan is a Section 125 plan and the eligibility rules for cafeteria plans are not satisfied. Key Employees A key employee is an employee who: Is an officer of the employer compensated more than the IRS threshold Owns more than five-percent of the employer Owns more than one-percent of the employer and receives compensation greater than the IRS threshold If a group life plan results in imputed income, both the employer and the employee must pay Social Security, Medicare, and federal unemployment taxes. Publication 15B from the Internal Revenue Service provides information on the taxation of group life insurance and other fringe benefits. Advice of a tax advisor is always recommended when setting up or transferring a group life insurance program. 7

9 Group Life Insurance Administration Employer Responsibilities As mentioned earlier in this guide, when discussing group life insurance policyholder always means the employer. As policyholders, employers have administrative responsibilities that carry statutory requirements at both state and federal levels. This section provides a brief overview of those responsibilities and suggests ways in which you can offer guidance for managing a sometimes complex and challenging process. Beneficiary Designations: Who s Responsible? Complete and current beneficiary designations can make the difference between a smooth claim process or one with problems and delays. Guaranteed Issue Guaranteed issue is the amount of coverage an employee can be offered when electing to participate in group life coverage without having to submit a statement of health (SOH) application. SOH is a term that is interchangeable with evidence of insurability (EOI). Carriers determine guaranteed issue based on plan characteristics such as the number of employees, the maximum amount of insurance available, the spread of insurance amounts, and the premium generated to offset potential losses. With optional plans, carriers generally have minimum participation requirements. Statement of Health Statement of health, is important to insurers and employers to reduce risk. An employee seeking coverage above the guaranteed issue, increasing coverage, or choosing coverage after he or she is first eligible (late entrant) may need to provide medical proof that he or she is an acceptable risk to obtain additional coverage. The information required by different carriers is essentially the same. Having an SOH form that asks for appropriate information in a manner that s easy for the applicant to understand will be beneficial to both the individual applying for the coverage and the plan overall. Employee responsibilities: Naming a beneficiary and providing the employer with up-to-date, complete information Reviewing and updating designations following life events (such as marriage, divorce, or birth of a child) Employer responsibilities: Maintaining appropriate records Providing a means for employees to update their records Reminding employees to review beneficiary designations and make changes, if appropriate, at certain times of the year (such as during enrollment) Administrative functions can be done internally or outsourced to a third party. Integrating SOH into the policyholder s enrollment process is critical to ensure that those who need to provide evidence of good health do so. Helping your clients understand SOH will make collaboration with a carrier easier and lead to the best results. 8

10 Group Life Insurance Administration Employer Responsibilities (continued) Beneficiary Designations and Assignments Effective maintenance of beneficiary designations and assignments helps ensure death benefits are paid to the intended beneficiaries in a timely manner. Beneficiary designations and assignments differ in important ways.your clients should understand and be able communicate these differences to employees. Beneficiary Designation: An employee is given the right to direct who will receive the proceeds of his or her group life insurance coverage if he or she passes away while covered under the employer s policy. An exception to this right may occur in the event of an absolute assignment, which might transfer beneficiary designation rights to the assignee. (See discussion below and on page 15.) Designating a beneficiary is usually completed when enrolling for group life coverage and may be changed as needed. Assignment: An assignment is the legal transfer of some or all rights of ownership to proceeds from a group life insurance policy from one individual or entity to another individual or entity. Under a group life insurance policy, the employee completing an assignment transfers some or all of his or her rights under the policy. (See discussion of assignments on page 15.) The employer can choose whether or not to make assignment available to employees. Life Claims: Critical Steps for Timely Payment The death of an employee is a rare, often unexpected event. The claim process may be unfamiliar to human resources or benefits personnel. Encourage your clients to help expedite the claim process and ensure timely payment of benefits: Inform Contact the carrier immediately. Questions, concerns, or additional information about a claim (such as notice of another party claiming benefits or seeking eligibility information) should be conveyed in writing. Submit Submit paperwork and other documentation such as beneficiary designations as quickly as possible. Incomplete or missing information is the primary cause for delays in claim settlements. Respond Respond to inquiries from the carrier as quickly as possible. 9

11 Group Life Insurance Administration Employer Responsibilities (continued) Coverage Continuation Group life insurance coverage for employees and their dependents generally is available to employees who are actively at work. However, an employer s policy may include provisions for employees who are no longer actively at work to maintain coverage for themselves and their dependents. Reasons for absences may include family and medical leave, leaves of absence due to disability, or layoff. Continuation provisions must be chosen by the policyholder to provide uninterrupted coverage. The length of a group life insurance policy continuation provision is specific to the type of continuation and must be agreed upon by the employer and carrier. Except as noted below, the employer must make premium payments to continue coverage for the employee and his or her dependents. Waiver of premium: This is an optional provision selected by the employer that provides continued coverage under the employer s plan for individuals who are totally disabled. The group life carrier makes the determination that the employee has met the definition of totally disabled as specified in the waiver of premium section or the definitions section of the employer s life insurance policy. The carrier has terminal liability. (See expanded discussion on pages ) Disability continuation: This is an optional provision selected by the employer that provides continued coverage under the employer s plan for disabled employees. Unlike waiver of premium, the employer, not the life insurance company, makes the determination of disability. To maintain coverage, premium payments must continue during an employee s absence from work. The carrier does not have terminal liability. Conversion: Conversion provides the insured employee the right to obtain an individual permanent whole life policy without evidence of good health when a portion of, or all group coverage ends. The ability to convert group life coverage is required by state statute. When Coverage Ends: The Employer s Role An employer must ensure employees understand their options and rights when coverage terminates under the company s plan. Review these proper notification steps with your clients: Identify employees with terminating coverage and confirm the termination date as soon as possible to provide notifications in a timely manner. Determine the specific coverage continuation options for the employee. Notify the employee in writing of his or her options, with clearly communicated deadlines for each option. Maintain a record of each notification. Portability: This is a provision that provides the insured employee the option to continue group term life insurance coverage under a separate group policy upon employee termination. Term life coverage available through the portability provision is generally issued through a policy that is part of a discretionary trust, and plan features may differ from those found under the employer s policy. Though portability is not a state-mandated benefit like conversion, the availability of the benefit is regulated by individual states. Portability may not be available in states that have statutes that recognize discretionary trusts. Portability is an optional provision that must be selected by the employer and may have restrictions related to such things as maximum coverage amounts or age limitations. 10

12 Spotlight: Waiver of Premium Waiver of premium is an optional benefit provision in the group life insurance contract that allows an employee who is considered totally disabled and not actively at work to continue his or her life coverage under the employer s group plan. While waiver of premium offers employees important coverage protection, the provision can be a source of confusion. Below are some key talking points to discuss with your clients when reviewing group life insurance coverage and waiver of premium. The definition of totally disabled To qualify for waiver of premium, an employee must be totally disabled. In the waiver of premium provision, totally disabled is generally defined as the inability, as a result of injury or sickness, to do any work through the entire elimination period. Disability, as defined in the waiver of premium provision, will likely differ from the definition of disability in a client s group disability insurance policy. Therefore, an employee considered disabled under a group disability insurance policy does not automatically qualify for waiver of premium. (See page 13.) The elimination period The standard elimination period for waiver of premium is six months. This time frame may differ from the elimination period on the client s long-term disability policy. Determine the appropriate waiver of premium elimination period for your client s program. Also communicate that extending or reducing the elimination period would likely affect the rate. Premium payments To maintain group coverage and remain eligible for waiver of premium, premium payments must be made: Through the waiver of premium elimination period; and Until the carrier determines that an individual meets the definition of totally disabled and approves the waiver. If an employer chooses to stop making premium payments, the employee s group coverage will terminate. In this instance, the employee can remain eligible for waiver of premium if he or she converts group coverage to an individual policy. Integrated waiver of premium If an employer s group life and group longterm disability insurance programs are administered by the same insurance carrier, the waiver of premium process can be integrated to streamline administration. The benefits of integrated waiver of premium include: Single claim submission the submission of the long-term disability claim initiates the waiver of premium claim Single request for information the life case manager references the disability claim medical documentation to make the waiver of premium determination Waiver of Premium Employee Actively at Work (Employer/employee pays premium) Employee Becomes Totally Disabled (Under age 60) Waiver Waiting Period (6-9 Months) Waiver of Premium Begins Waiver Period Ends Recovery RTW Death Attain Age Limit (Usually age 65) Waiver Continues (Ongoing review of eligibility) 11

13 Spotlight: Waiver of Premium (continued) It s important to remember that the definition of disability for waiver of premium may be different from the definition for long-term disability. If your client requests integrated waiver of premium, confirm the carrier s process and any potential rate impact. Claim filing For an employer with integrated waiver of premium, the waiver claim is initiated during the LTD claim. However, if an employer does not have an integrated process, or an employee does not have LTD coverage, the employer must initiate a waiver of premium claim. The waiver of premium claim should be initiated 30 to 60 days prior to the end of the elimination period to allow the carrier time to review the claim and make a determination. Conversion Conversion of group coverage to an individual life insurance policy is an option if coverage is ending and: An employee is disabled, but is still in the elimination period and has not yet qualified for waiver of premium, or An employee does not qualify for waiver of premium due to age or because he or she does not meet the definition of totally disabled. Employers should notify an employee of his or her right to convert coverage to ensure coverage remains In-force during the waiver of premium elimination period. If an employee converts to an individual policy and is approved for waiver of premium, the individual conversion policy may be returned for a full refund as long as no claim against the individual policy has been made. Terminal liability Terminal liability provisions, frequently referred to as extended coverage, refer to additional periods of coverage for claims incurred while a group life insurance contract is In-force, but that are paid during a specified period following termination of the contract. When Is a Total Disability Not a Total Disability? Total disability is defined under the terms and conditions of the employer s long-term disability or group life insurance contract, and it may not be the same for both products. Total disability can be defined as: Own job the inability to perform the functions of the employee s own job or position Some jobs the inability to perform the duties or functions of any job for which he or she is suited by training, education, or experience Any job the inability to perform any job or function In the context of waiver of premium, a carrier s explicit definition as spelled out in the plan provisions will determine if a waiver is triggered. 12

14 Frequently Asked Questions Does a transfer-of-coverage administrative letter or policy provision guarantee that an employee who dies will be covered at the time of the death? No. The transfer-of-coverage letter or provision provides the opportunity for an individual to become insured under the new group life insurance policy when he or she cannot satisfy the actively-at-work requirement on the policyeffective date. The following factors affect the determination of whether coverage is In-force at the time of a claim: Were premium payments made for the employee? Is the employee covered by the prior carrier s disability provision? Did coverage expire? Was the individual on the transfer-of-coverage list approved by the new carrier? These factors and the individual claim circumstances are taken into consideration during the claim process. How is transfer of coverage limited? Typically, transfer of coverage is limited in three ways: Who: The coverage is limited to only those employees who meet the policy provision requirements or employees who are on the list provided by the employer and submitted to and approved by the new carrier. How long: Transfer of coverage is generally provided for up to 12 months from date of disability. However, an individual s coverage may be limited by the amount of time he or she would have been covered under the continuation provision of the prior policy (and no longer than one year following the date of disability). How much: The amount of coverage will be the lesser of the amount insured under the prior policy or the amount under the new carrier s policy. Can a minor child be named as a beneficiary? Yes. However, benefits cannot be released directly to the minor child. A carrier will pay benefits to the court-appointed guardian of the minor child s estate (or property). In some states, the guardian of the estate or property is called the conservator of the estate. Parents are not automatically the guardians of a minor s estate. A parent may need to petition a local probate court where the child lives to be named guardian of the child s estate. In states that have enacted the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA), there are state-specific guidelines under which benefits may be released to an adult member of the minor s family. The adult may need to execute a standard affidavit certifying that he or she is the child s custodian under the law. The law in individual states varies as to the age at which a minor is deemed competent to be a recipient. Many states have dollar limits on the amount of money that can be paid under the UGMA/UTMA. (It s typically $10,000, but may be lower or as high as $50,000.) Can a trust be named as a beneficiary of a group life or accidental death insurance policy? Yes. There are generally two types of trusts used for this purpose: Testamentary trust: A trust established in an individual s probated will. The trust, if valid, is created upon death. Inter-vivos trust: A living trust created during the lifetime of the employee. The benefits payable to a living trust may be released to the trustee upon the employee s death. 13

15 Frequently Asked Questions (continued) What are the different types of assignments? There are three different types of assignments most frequently encountered in group life insurance. Absolute assignments transfer all rights, title, and interest from the assignor to the assignee. The assignment must be completed by the individual who has ownership rights under the policy. For a group life insurance policy, this individual is the employee. After completing an absolute assignment, the insured (the employee) no longer has the right to exercise any options available under the group life policy, including the right to: Change the coverage amount Cancel or convert coverage Exercise the portability feature Change a beneficiary These rights now belong to the assignee. Collateral assignments transfer the insured s ownership rights, usually for the purpose of providing additional security to a bank as collateral for a loan such as a mortgage. If the insured dies, the assignee (holder of the loan) receives only the benefit amount equal to the debt balance. The remaining benefit is paid to the insured s designated beneficiaries. What is a retained-asset account? A retained-asset account is a draft account issued to individuals receiving proceeds from group life and AD&D policies. The claimant or beneficiary has access to the funds by issuing drafts (similar to checks) in amounts up to the total balance in the account. As a result of increased state regulation, it is unlikely that carriers will continue to use the retained-asset account as the standard method of payment unless it is specifically elected by the beneficiary. Carriers may offer the beneficiary several payment options, including a retainedasset account or a lump-sum payment. How does a retained-asset account compare to a checking account? Life insurance proceeds deposited into a retained asset account earn interest. In addition, a beneficiary can also write a draft, which looks much like a check, from a retained-asset account to pay bills or purchase items. Some retainedasset accounts may also have an automated clearing house (ACH) feature, which allows account holders to purchase items from retailers that require ACH functionality. Generally, a retained-asset account is not insured by the Federal Deposit Insurance Corporation (FDIC); rather the insurance carrier guarantees any proceeds deposited into a beneficiary s retained-asset account. Funeral assignments transfer some or all of the policy benefits from the beneficiary to a cemetery, funeral home, or mortuary. The assignment should be completed by the beneficiary and the value assigned should cover only the amount due for services provided. Unless included on the assignment form, any interest payable on the benefit will be paid to the insured s designated beneficiary. 14

16 1 Key Success Factors: What to Look for in a Group Life Provider Group benefits programs play an important role in attracting and retaining talented employees and protecting their families. Selection of a carrier based on a holistic view of group life insurance features, beyond price alone, may uncover important ways a carrier adds value especially at the time of a claim. Features to look for include: Single Point of Contact: Group life claims are far less common than claims for other benefits programs and may be unsettling. A carrier should assign a designated case manager immediately after being notified of a claim to act as a single point of contact for the employer and beneficiary throughout the claim process. Beneficiary Focus: The death of a loved one is often unexpected, and a beneficiary may need assurance during this time. Effective case management begins with an experienced and compassionate case manager whose main focus is on guiding the beneficiary through a sometimes complex process. The life case manager may help complete the claim form, obtain the death certificate, arrange for payment of funeral expenses, and provide counseling on how to apply for Social Security survivor benefits. Administrative Flexibility: Human resources or benefits personnel have varied levels of experience handling claims and interacting with beneficiaries. A carrier should be able to tailor its support to align with an employer s culture and preferences. If an employer remains in close contact with its employees beneficiaries, the carrier s role is limited. However, if an employer has a small staff or limited experience managing claims, the carrier may take a more active role and work directly with beneficiaries. Did You Know? Liberty Mutual Insurance has published a library of useful resource guides to support group life insurance clients and beneficiaries. Taking the Next Step A Resource Guide for Beneficiaries Moving Forward: A Guide for Employers maps out critical tasks to follow after the death of an employee and offers suggestions for supporting coworkers and the deceased s family through this difficult transition. Taking the Next Step: A Resource Guide for Beneficiaries focuses on practical matters, including financial and legal issues, and suggests resources that can help a beneficiary when a loved one dies. More than Recordkeeping: A Resource Guide for Employers identifies key steps employers need to take to effectively manage their employees group life beneficiary designations and assignments. Contact your Liberty Mutual Insurance Group Benefits sales representative for more information. Group products and services are offered by Liberty Life Assurance Company of Boston, a Liberty Mutual company. Home Office: Boston, MA. This document contains general information, which may change. Products and services discussed in this guide may not be available from all carriers. Please seek professional advice for complete information Liberty Mutual Insurance. GRP 109