1 Protect your family with the right amount of Supplemental Life Insurance You may have a small amount of Basic Life Insurance, but would it be enough to protect your family if something happened to you? The opportunity to add Supplemental Life Insurance through your employer s group plan is an affordable way to help make sure you have the right amount of coverage. You can spend just a little to buy a lot because the group rates on Supplemental Life Insurance offer an economical way to buy life insurance.
2 How much do you need? While there are formulas to help determine how much life insurance to buy, the best way is an individual approach that looks at your own family s circumstances. You can paint a clear financial picture by calculating the cost of your basic living expenses and the lifestyle, experiences and opportunities that are important to you. Every family has important factors to consider. A family with young children might be especially concerned with assuring adequate finances to meet education costs. A couple in their 50s or 60s may want to make sure an unexpected loss wouldn t jeopardize the financial requirements for a secure retirement for the surviving spouse. Life insurance can help secure home ownership by providing funds to pay off a mortgage, or it can protect family members from the burden of large debts. Use the Life Coverage Needs Worksheet on the next page to calculate your need for Supplemental Life Insurance.
3 Life Coverage Needs Worksheet 1. Amount needed to pay off outstanding debt: Credit cards Car payment Mortgage Medical expenses 2. Amount needed to provide children s future education: + 3. Your current salary times the number of years you wish to provide replacement income for your family s expenses: Rent Childcare Everyday living expenses Saving for retirement 4. Funeral expenses: + 5. Life insurance coverage you already have: - 6. Total amount needed: = Since your family s needs change over time, it s a good idea to review your financial situation and your insurance coverage periodically. And if there s a big change in your life, such as buying a house or having another child, that s a good time to update your coverage.
4 Now is a perfect time to secure your family s future with the right amount of life insurance Are you eligible for group rates and guaranteed coverage? Purchasing Supplemental Life Insurance through your employer offers three valuable advantages: Group rates: This is an economical way to buy. Convenient payroll deduction: You never have to think about making your premium payments. Guaranteed coverage: Guaranteed coverage means that, up to a specified coverage level, you are not required to show proof of good health with a Personal Health Statement and possibly a medical exam provided you meet two conditions: TO QUALIFY FOR GUARANTEED COVERAGE, YOU MUST: Selecting a coverage amount 1. Select a coverage amount that is guaranteed, and 2. Enroll on time. Your Benefit Highlights Sheet will show you the Supplemental Life coverage amounts that are available to you. Take special note of your Guaranteed Issue amount which is shown on the sheet. For any coverage amount up to your Guaranteed Issue amount, you qualify for guaranteed coverage and will not need to complete a Personal Health Statement as long as you also enroll on time. You may purchase a higher coverage amount; in fact, economical group rates may make it attractive to do so. To purchase an amount higher than the Guaranteed Issue amount, you simply need to complete a Personal Health Statement, perhaps undergo a medical exam, and be approved by Hartford Life.
5 Enroll on time. It makes a difference. To receive guaranteed coverage, you must enroll during your enrollment period. When is your enrollment period? For most employees: The enrollment period is indicated on your Benefit Highlights Sheet. For new employees: For newly hired employees, please refer to your Benefit Highlights Sheet to determine if there is an eligibility waiting period. If there is, your enrollment period begins once you have satisfied the waiting period and continues for 31 days. If you enroll after your enrollment period as described above, you must complete a Personal Health Statement, and perhaps a medical examination, and be approved by Hartford Life before coverage can begin. If included in your plan an employee who experiences a change in family status (such as a marriage, divorce, birth, adoption, death of a spouse, or the end of a child s dependent status) has an extra period of 31 days from the date of that change to enroll. A Personal Health Statement may or may not be required. Your group Supplemental Life Insurance plan may come with a number of additional, optional features selected by your employer. Check your Benefit Highlights Sheet to see which ones are included in your plan.
6 Benefit options that add value to your group Life Insurance plan: Conversion If your group life coverage ends, you generally have 31 days to convert to an Individual Life policy with Hartford Life without having to complete a Personal Health Statement to show proof of good health. Portability If you leave your company prior to retirement, you may continue your group coverage with a policy that you can take with you without having to complete a Personal Health Statement to show proof of good health. Waiver of Premium The Waiver of Premium benefit is a safeguard against losing your Supplemental Life Insurance in the event of financial hardship caused by a disability. If you become disabled, our Waiver of Premium benefit can allow you to continue coverage without having to pay a premium. Living Benefits Option When an employee is coping with a terminal illness, the Living Benefits Option pays a portion of the benefit now-with unrestricted use and pays the remainder as a death benefit later. Accidental Death and Dismemberment (AD&D) AD&D Insurance pays an additional death benefit if death is by accident, or pays benefits for accidental injuries that result in paralysis or the loss of sight, hearing, an arm or leg, or a thumb and index finger. Additional benefits may also be included in your plan. Financial Planning Professional financial planning services are available to beneficiaries at no charge through FinancialPoint SM and Arthur Andersen Consulting, Inc. Financial planning experts can help beneficiaries focus on preparing for a secure financial future by providing knowledgeable, impartial financial counseling. Confidentiality is assured at all times. Employee Assistance Program To help employees cope with situations like marital difficulties and emotional problems, Hartford Life offers services through our affiliation with ComPsych, whose specialists provide confidential counseling. You may speak to a licensed professional counselor by phone and, if you desire, you may request a referral for additional counseling. Assistance for beneficiaries: Safe Haven Account Death benefits are deposited into a free, interest-bearing checking account for the beneficiary. This account offers both fast, convenient access to funds and a safe place to keep those funds until decisions can be made about how and where to use or invest them.
7 How to enroll Make sure your employer provides you with a Benefit Highlights Sheet because the details on this sheet will help you understand the terms of your Supplemental Life Insurance plan. Then you re ready to complete an enrollment form also available from your employer. Return your enrollment form to your employer before the end of your enrollment period to avoid losing your eligibility for guaranteed coverage. If you have questions regarding your coverage, please ask your employer or your Benefits Manager. When will coverage begin? As long as you enroll during your enrollment period, coverage begins as follows: For most employees: Guaranteed coverage begins on the plan effective date shown on the Benefit Highlights Sheet. For new employees: Guaranteed coverage begins on the first day after the eligibility waiting period if you enrolled during that time; or, if you enroll within the next 31 days, on the day you enroll. For a change in family status: If this feature is included in your plan, guaranteed coverage begins the day you change your enrollment. If you re absent: If you re absent from work on the day your coverage would otherwise become effective, your coverage may be deferred until your next full day of work. If you enroll after the enrollment period or you are applying for more than the Guaranteed Issue amount: You will need to complete a Personal Health Statement, and you may have to undergo a medical exam. Your coverage begins after your enrollment has been approved by Hartford Life.
8 Limitations and Exclusions As is standard with most term life insurance plans, coverage amounts will be reduced at certain ages in order to prevent premium increases. Check your Benefit Highlights Sheet for these details. In addition, death by suicide is covered only after the policyholder has been insured for two years by this Supplemental Life policy. Other exclusions may apply depending upon your coverage. Refer to your policy. Choose Supplemental Life Insurance from a name you trust Hartford Life Because you re protecting your family s future, it s important that your employer has chosen a dependable company, Hartford Life, to provide group Supplemental Life Insurance coverage. Hartford Life is the third largest insurance group in the U.S. based on assets, 1 and a leading provider of both group life and group disability insurance. 2 We are part of The Hartford, one of the world s oldest and most respected names in insurance. 1 Based on year-end statutory asset data from Thomson Financial, Based on statistics compiled by LIMRA International, Inc., 2000 year-end sales surveys.