SBAM Life, Disability and Voluntary Insurance Plans

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1 SBAM Life, Disability and Voluntary Insurance Plans Term Life Insurance and Accidental Death & Dismemberment...2 Voluntary Life and Accidental Death & Dismemberment...3 Short-Term Disability Insurance...4 Long-Term Disability Insurance...5 Accident Insurance...6 Critical Illness Insurance...7 Brought to you by SBAM and our partner Lincoln Financial Group SMALL BUSINESS Association of MICHIGAN Focusing the power of small business. Focusing the power of small business

2 Life & Disability Insurance Options for Small Companies The Small Business Association of Michigan has partnered with Lincoln Financial Group to develop an enhanced life and disability program that is unique for our members. Coverage Overview All products are available to groups with 1 to 99 eligible employees. Groups are not asked to provide SIC codes or job titles. Basic life, short-term disability and long-term disability can be written as stand-alone. Basic life is required in order to purchase dependent and voluntary life. Basic life, short-term disability and long-term disability are non-contributory (employer pays for 100% of premium for all eligible employees). 100% participation is required. Definition of full-time employment can be as high as 40 hours per week or as low as 20 hours per week. Must be in business at least one year for life and short-term disability coverage. Must be in business at least two years for long-term disability coverage. Lincoln provides an easy enrollment experience for you and your employees. Our personalized and professional approach stays with you every step of the way from planning a customized enrollment strategy to empowering your employees to make smart benefit decisions through clear communication and one-on-one consultation. What s more, our service excellence doesn t walk out the door after enrollment. Our expertise in implementation and claims management ensures you and your employees stay confident in protecting their futures with Lincoln Financial Group. Term Life Insurance and Accidental Death & Dismemberment Term life insurance helps provide for loved ones in the event of a loss. By including Accidental Death & Dismemberment (AD&D), the plan also covers severe accidental injuries. BASIC LIFE AND AD&D AMOUNTS Basic Life and AD&D Rate is $0.37 per $1,000 combined. All options are guaranteed issue to full amount elected. DEPENDENT LIFE AMOUNTS Dependent Life Rate (per family unit) is $1.61 Can only be purchased in conjunction with the base life and AD&D. AGE REDUCTION SCHEDULE Employee benefits will be reduced according to the following schedule: $15,000 $25,000 $50,000 1x BAE to $100,000 Spouse $5,000 Child(ren) $2,000 ages 6 months to 19 years or 23 for students Child(ren) $500 birth to age 6 months 65% at age 65 40% of original amount at age 70 25% of original amount at age 75 Employee benefits terminate at retirement Spouse benefits terminate at age 70 2

3 A variety of plan options: Term life benefits can be a flat dollar amount or a percentage of salary with flexible Guarantee Issue amounts. Couple this with a variety of enrollment options and a wide range of plan designs are possible. Waiver of premium if disabled: If an insured is totally disabled for more than six months in a row from any occupation for which the insured is qualified (as set forth in the policy), premiums for the life insurance are waived. AD&D can double or triple the life benefit: With AD&D, a benefit is paid for loss of limb or eyesight due to a covered accident. If the insured loses his or her life as the result of the accident, the value of the life insurance is doubled. In addition, a common carrier provision is included that triples the life benefit if an accidental death occurs while a passenger on a common carrier (train, plane, etc.). TravelConnect sm travel assistance services: These services are included with all life insurance policies at no additional cost. The travel assistance program is available to all insured employees and their dependents traveling more than 100 miles from home, whether for business or leisure. Services include everything from weather forecasts to help locating lost luggage or passports to emergency medical evacuation halfway around the world. BeneficiaryConnect sm assistance program: This service provides free grief, legal or financial counseling, memorial planning services, child/elder care referrals and relocation services to beneficiaries after a loss. Voluntary Life and Accidental Death & Dismemberment An optional, add-on plan with a maximum benefit of no more than 5 the employee s annual salary. VOLUNTARY LIFE AND AD&D AMOUNTS EMPLOYEE ELECTIONS Minimum $10,000 / Maximum $500,000 (not to exceed 5 annual salary) SPOUSE ELECTIONS Minimum $5,000 / Maximum $20,000 DEPENDENT CHILD(REN) GUARANTEE ISSUE LIMITATIONS EMPLOYEE SPOUSE $20,000 $10,000 after 6 months of age Lesser of $300,000 or 3 annual salary Employees age receive $20,000 of coverage on a guaranteed acceptance basis. Employees age 75 and over are not eligible for coverage on a guaranteed acceptance basis. Spousal Voluntary Life benefits not to exceed 50% of the employee elected amount. Voluntary life is both portable and convertible. Voluntary Life/AD&D can only be purchased in conjunction with the group Basic Term Life/AD&D. Voluntary life/ad&d must be written with a policy effective date of not more than 60 days after the effective date of the group Basic Term Life/AD&D. Any Voluntary Life/AD&D plan with an effective date of more than 60 days after the group Basic Life/ AD&D plan effective date will require evidence of insurability. 25% employee participation is required for Voluntary Life. VOLUNTARY LIFE AND AD&D RATES PER $1,000 Note: Spouse rate is based upon employee age. AGE RATE AGE RATE < 30 $ $ $ $ $ $ $ $ $ $ $0.635 Dependent Child(ren) AGE REDUCTION SCHEDULE Employee benefits will be reduced according to the following schedule: Spouse benefits will be reduced according to the following schedule: $ % at age 65 40% of original amount at age 70 25% of original amount at age 75 Employee benefits terminate at age 80 or retirement, whichever occurs first. 65% at employee age 65 Benefits terminate at employee age 70 or retirement, whichever occurs first. DEPENDENT CHILD(REN) $10,000 3

4 Short-Term Disability Insurance The ability to earn income is sometimes the only financial security an employee has. If so, a disabling injury or illness can be devastating. That s why having short-term disability (STD) insurance from Lincoln Financial Group is an important employee benefit. Available for 13- to 26-week benefit durations with a variety of standard and optional benefits No exclusions for pre-existing conditions STD PLAN OVERVIEW ELIMINATION PERIOD OPTIONS BENEFIT DURATION OPTIONS 1st day accident / 8th day illness 15th day accident / 15th day illness 13 weeks 26 weeks PERCENTAGE OF SALARY 66.67% WEEKLY BENEFIT MAXIMUM $1,000 STD RATES PER $10 OF WEEKLY BENEFIT 1st day accident / 8th day illness / 13 weeks of coverage $0.45 1st day accident / 8th day illness / 26 weeks of coverage $ th day accident / 15th day illness / 13 weeks of coverage $ th day accident / 15th day illness / 26 weeks of coverage $0.46 Lenient zero-day residual for the elimination period: This allows the employee to satisfy the elimination period with either total or partial workdays, so that they can work part-time without starting a new elimination period. Aggressive work incentive benefit for part-time work: Encourages the employee to return to work part-time by allowing them to earn up to 99% of their predisability income. Enhanced disability benefits Family Income Benefit: The loss of a loved one is difficult. If a family s primary income provider should die while disabled, the family may have no income to help pay for unexpected medical and care expenses. Lincoln s Family Income Benefit provides an additional benefit payment upon death to help fill the gap. Rehabilitation Assistance Benefit: Employees want to get back to work as soon as possible, and we re here to help. The Rehabilitation Assistance Benefit is designed to encourage disabled employees to take part in valuable rehabilitation programs. Lincoln will pay an increased benefit amount to employees who participate in an approved rehab program. Plus, vocational rehab programs can be tailored to individual needs to help the employee return to work in less time. This benefit can also help the employer. Enhanced C-Section Benefit: More and more mothers are undergoing C-sections rather than a traditional birth. Lincoln recognizes this fact and also the important time mother and baby need after the procedure. The enhanced C-Section Benefit recognizes this shift with an expanded benefit period to accommodate a longer eight-week recovery time. The C-Section Benefit is one more example of Lincoln s commitment to provide benefits customers really need. 4

5 Long-Term Disability Insurance Long-term disability (LTD) insurance helps protect an employee s income for a disability lasting longer than the elimination period defined as the policy (typically 90 to 180 days). Lenient zero-day residual for the elimination period: The employee is able to satisfy the elimination period with either total or partial workdays. Therefore, employees can work part-time without starting a new elimination period. Generous partial disability calculation: This allows the employee to receive up to 100% of pre-disability employment combined with the LTD benefit payment for the duration of the claim. Progressive income benefit: The core benefit is automatically increased by 10% when an employee suffers a temporary or permanent loss resulting in serious cognitive impairment or the inability to perform two or more Activities of Daily Living. Recovery benefit for commissioned employees: Provides a six-month supplemental benefit for commissioned employees while ramping up their pre-disability commissioned-based income. Value-added employee assistance program (EAP) at no additional cost: Lincoln EmployeeConnect SM is the standard EAP included with all Lincoln Financial LTD contracts and is available to all insured employees. Pre-Existing Conditions If diagnosed with a specific condition within the last 12 months, and/or treated for that same condition within the last 6 months, the employee may be ineligible for benefits for 24 months. LTD PLAN OVERVIEW ELIMINATION PERIOD OPTIONS 90 days PERCENTAGE OF SALARY 60% 180 days WEEKLY BENEFIT MAXIMUM $1,000 5 years or to age 70, whichever occurs first BENEFIT DURATION OPTIONS Social Security Normal Retirement Age (SSNRA) OWN OCCUPATION PERIOD 25 months WEEKLY BENEFIT MAXIMUM $1,000 LTD RATES PER $100 OF MONTHLY COVERED PAYROLL ELIMINATION PERIOD 90 days 180 days 5-YEAR DURATION $0.42 $0.35 SSNRA DURATION $0.65 $0.55 Enrollment Process The necessary paperwork for enrolling in a new Life and Disability plan includes the following: 1. SBAM Membership Application with first-year dues payment or proof of membership in good standing. 2. Lincoln Group Application/Agreement 3. Employee application for each participant 4. First month Lincoln premium check made payable to The SBAM Plan Once the company enrollment form is submitted to SBAM, a representative from our enrollment service company, EOI, will contact you and your insurance agent for the next steps of implementation for the life & disability enrollment at the employee level. For more information, please call your independent insurance agent or contact SBAM at (800) or 5

6 Accident Insurance Lincoln Accident Insurance expands your benefit package and provides your employees cash benefits if they suffer a covered accidental injury. This benefit can help them meet copayments and other expenses while they recover. And because it s offered on an employee-paid basis, your employees get access to this valuable coverage at group rates with virtually no cost to you. Five reasons why Lincoln Accident Insurance is a smart choice for your benefit plan: 1. Flexible product options give you the right fit. You can choose one of four basic plans, ranging from the Select Plan, with the lowest premium, to the Elite Plan, with the highest benefits. Enhance your plan by adding one or more riders to create coverage that meets your group s unique needs. 2. Everyone receives the same benefit amount. The employee, spouse and dependent children all receive the same benefit. Doctors and hospitals don t charge the spouse or child less so why should they receive a smaller benefit? 3. Lincoln doesn t limit benefits for multiple injuries. Lincoln makes multiple payments if an employee suffers multiple covered injuries in a single accident. If your employee breaks five bones, Lincoln pays the full benefit on all five. If the employee has three dislocations, Lincoln will pay for them too! 4. There are no exclusions for preexisting conditions. Even if an employee has a preexisting illness or disability that might disqualify them from some policies, they can still obtain accident insurance without undergoing medical examinations or filling out health questionnaires. 5. Employees can keep coverage even if they leave your company. Lincoln s accident insurance is fully portable, meaning your employees can keep their coverage if they retire or leave your company. FOUR LEVELS OF COVERAGE TO CHOOSE FROM SELECT CHOICE PREFERRED ELITE Our most economical offering Rich benefits at an affordable rate A more robust benefit level The maximum level of benefit Each plan includes Accident EAP and TravelConnect SM assistance. You may also customize each plan for your needs with optional benefits that can be provided to all employees or offered on an individualemployee basis. 6

7 Critical Illness Insurance When an employee is diagnosed with a critical illness, the last thing they should worry about is money. Build upon the foundation of your employee benefits package with Lincoln s Critical Illness Insurance. It helps eliminate financial concerns by paying a cash benefit upon diagnosis, regardless of any other income, expenses incurred or other insurance and there are no restrictions on how the money is used. You can offer this important coverage on an employee-paid basis, so there is little cost to you. The Lincoln CareCompass SM category is the foundation of the plan. It is a group of benefits and services to help employees stay well and provide them with guidance through their treatment process if diagnosed with a critical illness. This category includes a benefit for an annual wellness assessment as well as a benefit to assist with child care if the employee is hospitalized with a covered critical illness/event. Also included are health advocacy, travel assistance and support services, some of which are available even without a critical illness/event. FIVE CATEGORIES OF COVERAGE TO CHOOSE FROM HEART CANCER ORGAN QUALITY OF LIFE CHILD Heart attack Stroke Heart transplant Arteriosclerosis Aneurysm Invasive cancer Cancer in situ Benign brain tumor Bone marrow depression Major organ transplant (except heart) End-stage renal failure Acute respiratory distress syndrome ALS/Lou Gehrig s disease Advanced Alzheimer s Advanced multiple sclerosis (MS) Parkinson s disease Loss of sight, speech or hearing Nine genetic disorders Six congenital metabolic disorders Type 1 diabetes 15 structural congenital defects Enrollment Process The necessary paperwork for enrolling in a new Accident/Critical Illness plan includes the following: 1. SBAM Membership Application with first-year dues payment or proof of membership in good standing. 2. SBAM Accident/Critical Illness Company Enrollment Form Once the company enrollment form is submitted to SBAM, a representative from our enrollment service company, EOI, will contact you and your insurance agent for the next steps of implementation for the accident and critical illness enrollment at the employee level. For more information, please call your independent insurance agent or contact SBAM at (800) or Coverage is available in each of these categories for employees, spouses and dependent children. Child category available to children only. 7

8 Small Business Association of Michigan gives your business POWER Fight for Michigan small business sbam.org/action Save on vital products and services sbam.org/resources The Small Business Association of Michigan focuses the power of more than 23,000 small business members to help your business achieve more than you could on your own. SMALL BUSINESS Association of MICHIGAN Focusing the power of small business. Focusing the power of small business. 5/ FW 120 N. Washington Square, Suite 1000 Lansing, MI