Richardson Independent School District 2013 Open Enrollment Supplemental Term Life Insurance Short Term & Long Term Disability Accidental Death & Dismemberment
When is Open Enrollment? Open enrollment begins Monday November 5 th and will end Friday November 16 th. No changes to current plans or rates Please return your signed Open Enrollment form to the Insurance Services office in the Administration Building on or before the deadline of Friday November 16, 2012 If you have any questions please contact Insurance Services at 469.593.0348 or 469.593.0349. 2
Who is Eligible? You are eligible for coverage if you are: a full time, active employee of RISD work at least 30 hours a week hold an allocated, budgeted position 3
Unum group term life insurance What is term life insurance? Provides insurance coverage for the period during which premiums are paid Is the simplest and least expensive form of life insurance Qualifying for coverage At annual enrollment you can enroll in the lowest amount of coverage or you can increase coverage by 1 level without evidence of insurability If you select a higher amount of coverage, then you will be asked to complete an evidence of insurability form and submit to Unum Why purchase term life insurance from Unum? Competitive group rates Payroll deduction Flexible coverage Portability 4
How much insurance do you need? Outstanding debt $ Mortgage balance $ Other debt $ Ongoing expenses $ (Utilities, insurance, food, gas, education, savings, etc) Future plans $ (College, retirement, long term care, etc) Total $ Current coverage -$ Amount of potential need $ 5
Supplemental Term Life Insurance RISD provides $10,000 Basic Life Insurance at no cost to you. You may purchase additional life insurance coverage for: Yourself 1,2, 3 or 4 times your annual earnings to a maximum of $490,000. Your Spouse - $10,000, $20,000, $30,000, $40,000 or $50,000 to a maximum of 50% of your life insurance coverage election. Your Child(ren) - $5,000 or $10,000 not to exceed 50% of your life insurance coverage election. Your election(s) may be subject to Evidence of Insurability see your enrollment packet for details. 6
How Much Will Term Life Insurance Cost? Premiums are based on your salary, age & smoking status How much will it cost a month to insure myself?: What is your annual salary?: _$24850_ (a) How much coverage do you want?(1,2,3 or 4 times): 2 Times_ (b) Multiply line a by line b and round up to nearest $1000: $50000 (c) Divide line c by $1000: $50 (d) How old are you? 42 (e) Are you a smoker? No (f) Based on lines e & f, find your rate on chart :.067 (g) (on the term life highlight sheet) Multiply line d by line g to get monthly premium: $3.35 7
How Much Will Term Life Insurance Cost? How much will it cost a month to insure my spouse?: How much coverage do you want?: ($10000, $20000, $30000, $40000 or $50000) Is this more than 50% of my coverage election? $20000_ (a) No Divide line a by $1000: $20 (b) How old is your spouse? 39 (c) Based on line c find the rate on chart : (on the term life highlight sheet).060 (d) Multiply line b by line d to get monthly premium: $1.20 How much will it cost a month to insure my children?: How much coverage do you want?: _$10000 (a) ($5000 or $10000) Is this more than 50% of my coverage election? Determine monthly rate based on line a: (.55 for $5000 or 1.10 for $10000) No $1.10 8
How Much Will Term Life Insurance Cost? How much will be deducted on my paycheck?: How much will your monthly premium be?: $3.35 _ (a) How much will your spouse s monthly premium be? $1.20_ (b) How much will your child s monthly premium be? $1.10 (c) Add lines a, b & c to get total Monthly premium: $5.65 (d) Divide line d by 2 if paid Bi-Weekly: $2.83 9
Life Benefit highlights Accelerated benefit If you become terminally ill and are not expected to live more than 12 months, you may request a certain percentage of your insurance amount. Upon your death, any remaining benefit will be paid to your designated beneficiaries. Retained asset account Benefits can be paid through a deposit made to an interestbearing account to your beneficiaries. (Applies only to benefit amounts of $10,000 and over.) *Benefit exclusion - Benefits will not be paid if an insured commits suicide within the first 24 months of coverage or within 24 months on any increase in coverage. 10
Life Planning services counseling Counselors are specially trained to provide financial, legal and emotional support during a difficult time. The financial advice is objective and customized to the individual s situation. Counselors do no receive commission for advocating any particular service or solution. 1 Claim is received 2 Employee or beneficiary is contacted by telephone 3 A personalized financial plan is developed 4 Toll-free access to further assistance is available for 12 months Life Planning Financial & Legal Resources is provided by Ceridian Corporation. This service is available with select Unum insurance offerings. Exclusions, limitations and prior notice requirements may apply, and service features, terms and eligibility criteria are subject to change. Ceridian Corporation is not engaged in rendering legal advice. Users should consult their own attorneys. The services are not valid after termination of coverage and may be withdrawn at any time. Please contact your Unum representative for full details.
Additional Coverage: Unum AD&D insurance Accidental death and dismemberment You may purchase AD&D coverage of one, two, three or four times your annual earnings. Your AD&D election may not exceed your Supplemental Term Life Insurance coverage election. Evidence of Insurability is not required. This benefit is paid in addition to the life benefit if you: Die in a covered accident Suffer a covered dismemberment or disability 12
How Much Will it AD&D Insurance Cost? Premiums are based on your salary What is your annual salary?: _$24850_ (a) How much coverage do you want?(1,2,3 or 4 times): 2 Times_ (b) Multiply line a by line b and round up to nearest $1000: $50000 (c) Is this more than my term life coverage election? No Divide line c by $1000: $50 (d) Multiply line d by.02 to figure Monthly premium: $1.00 (e) Divide line e by 2 if paid Bi-Weekly: $.50 13
Short & Long Term Income Protection Plans 14
Can You Afford a Disability? There s a lot depending on your paycheck! 15
Helping to Protect Your Income Personal Savings Nearly one quarter of Americans are living paycheck to paycheck: they have no money left once they have paid their essential living expenses. 1 Would you have enough to last through a long-term illness or injury? Workers Compensation About two-thirds of all disabling injuries suffered by American workers in 2004 occurred off the job and are not covered by workers compensation. 2 Health Insurance Covers only your medical bills and offers no financial security for your everyday expenses. 1 LIMRA, Choosing Benefits: A Battle for the Employee Dollar, by Anita Potter and Yuliya Babushkina, March 16, 2006. 2 National Safety Council, Injury Facts. 2005 edition. 16
Income Protection Plans Short Term Weekly benefit equal to 60% of your base weekly earnings, to a maximum of $500 per week May receive up to 10 weeks of benefits Benefit begins after 20 days of continuous disability or sickness Long Term Monthly benefit equal to 60% of your base monthly earnings to a maximum of $5,000 per month Duration of benefits is based on your age when disability occurs and if you continue to meet the definition of disability*. Benefit begins the later of 90 days of continuous disability or the date your Short Term payments end, if applicable Short & Long Term Coverage Elections are subject to Evidence of Insurability *See enrollment packet for definition of disability 17
Definition of Short Term Disability Scenario: You are out of work or plan to be out of work due to a short term disability. Generally, the following steps would then be taken: ELIMINATION PERIOD BEGINS Your elimination period will require a specified amount of time to pass before your disability benefits begin to accrue. REGULAR OCCUPATION DEFINITION ACTIVATED Your disability benefits will be paid if you are limited from performing the material and substantial duties of your regular occupation and are experiencing a 20% loss of earnings. Benefits payable to a maximum of 10 weeks 18
How Much Will Short Term Disability Insurance Cost? Premiums are based on your salary & age What is your annual salary?: _$24850_ (a) Divide line a by 52: _$477.88_ (b) Multiply line b by 60% to figure weekly benefit: _$286.73_ (c) Is line c more than $500? No How old are you? 41 (d) Based on lines d, find your rate on chart :.27 (g) (on the short term disability highlight sheet) Multiply line c by line g $77.42_ (h) Divide h by 10 to figure your Monthly cost: $7.74 _ (i) Divide line h by 2 if paid Bi-Weekly: _ $3.87 19
Definition of Long Term Disability Scenario: You are out of work due to a long term disability. Generally, the following steps would then be taken:* ELIMINATION PERIOD BEGINS REGULAR OCCUPATION DEFINITION ACTIVATED ANY OCCUPATION DEFINITION ACTIVATED Your elimination period will require the later of 90 days of continuous disability or the date of your last Short Term payment, if applicable, to pass before your disability benefits begin to accrue. The first part of your disability benefits will be paid if you are limited from performing the material and substantial duties of your regular occupation and are experiencing a 20% loss of earnings. These benefits are payable up to 24 months. After benefits have been paid for 24 months, you are disabled if you are unable to perform the duties of any gainful occupation for which you are reasonably fitted by education, training or experience. Benefits payable up to age 65 *Assumes continuation of original injury or illness 20
How Much Will Long Term Disability Insurance Cost? Premiums are based on your salary & age What is your annual salary?: _$24850_ (a) Is line a more than $100,000? No Divide line a by 12: _$2070.83_ (b) How old are you? 41 (d) Based on lines d, find your rate on chart :.19 (g) (on the long term disability highlight sheet) Multiply line b by ling g: _$393.46_ (h) Divide line h by 100 to figure your Monthly cost: $3.93 (i) Divide line i by 2 if paid Bi-Weekly: _$1.97 21
See the 2013 Life & Disability Open Enrollment Page on Rportal for more information. If you have any questions call Insurance Services at 469.593.0348 or 469.593.0349 REMEMBER ENROLLMENT FORMS ARE DUE TO THE INSURANCE SERVICES OFFICE IN THE ADMINISTRATION BUILDING ON FRIDAY NOVEMBER 16 TH, 2012 2008 Unum Group. All rights reserved. Unum is a registered trademark and marketing brand of Unum Group and its insuring subsidiaries. Underwritten by the following subsidiary of Unum Group: Unum Life Insurance Company of America, 2211 Congress Street, Portland, Maine 04122 Policies or provisions may vary or be unavailable in some states. Policies have exclusions and limitations which may affect any benefits payable. See the actual policy or your Unum representative for specific provisions and details of availability. PP-95 (3-08) 22