Supplemental Term Life Insurance Plan

Supplemental Term Life Insurance Plan This information describes Lowe s Supplemental Term Life Insurance Plan (the Supplemental Life Plan Option), which is available to all full-time employees. Participation is subject to timely enrollment and the payment of premiums specified by Lowe s. You do not have to be enrolled in the Basic Life Plan Option to enroll in the Supplemental Life Plan Option, although you may enroll in both plan options. Please note that your maximum benefit will be combined with your coverage under other life insurance plans offered by Lowe s. The following sections summarize the Supplemental Life Plan Option. Please review these provisions and retain this book for future reference. Key terms used in this text are specifically defined at the back of this section. In This Section See Page About This Coverage... 2 Benefit Cost... 2 Late Enrollment... 2 Cancellation of Coverage and Beneficiary Designation... 2 Life Insurance Benefits... 2 Portability and Conversion of Life Insurance... 3 Exclusions... 4 Filing Claims... 4 Definitions... 5 Dedicated Beneficiary Services... 5 1

About This Coverage MetLife insures the Supplemental Life Plan Option. MetLife certifies, subject to the terms and conditions of the group policy issued to Lowe s by MetLife, that coverage is provided for each employee who has satisfied the eligibility and enrollment provisions of the Supplemental Life Plan Option, as described in the following sections. Benefit Cost The employee pays 100% of the cost. The cost of the Supplemental Life Plan Option may be lower than for comparable insurance on an individual basis. Late Enrollment You should apply for coverage when first eligible. If you apply more than 60 days after your date of hire, you must provide satisfactory proof of good health to MetLife. Any cost incurred in order to complete the proof of good health forms is the employee s responsibility The form is: Statement of Health. Coverage will then become effective on the date proof of good health is approved by MetLife, provided you are actively at work. You must reenroll if, for any reason, coverage ceases. Cancellation of Coverage and Beneficiary Designation You can cancel your coverage under the Supplemental Life Plan Option at any time by completing a coverage change and late application form. See the Termination of Coverage section of Plan Overview, for more information regarding cancellation of coverage. If you name more than one beneficiary, each will share equally unless you indicate otherwise. If a beneficiary dies before you, his/her share will be paid equally to the surviving beneficiaries, unless you state otherwise. If you do not name a beneficiary, or if all named beneficiaries do not survive you or are disqualified, your death benefits will be paid to your family members in the following order: Your legal spouse or domestic partner; Yours or your domestic partner s children; Your mother or father; or Your siblings. If none of your family members survive you, your death benefits will be paid to your estate. State law may require or allow MetLife to pay part of your insurance proceeds to a person incurring expenses for your last sickness or death, or an institution that assumed your custody and support during your incapacitation. Life Insurance Benefits Your Benefit Supplemental Life coverage may be selected in units of one through eight times your Base Annual Earnings. When you enroll in a timely manner (See the Plan Overview section for initial enrollment requirements) you can qualify for up to the lesser of three times your base annual earnings or $500,000. Coverage amounts over these limits are subject to approval by MetLife. You must provide satisfactory proof of good health to MetLife. The coverage is determined by multiplying your Base Annual Earnings by the number of coverage units you have selected and rounding to the nearest thousand. This coverage cannot exceed $3,000,000. You may name anyone as your beneficiary by listing their name or names on the Supplemental Life Plan portion of the MetLife MyBenefits website, accessed through myloweslife.com. The effective date of the change is the date the request is signed. However, neither Lowe s nor MetLife is liable for any amount paid before the request is received. 2

Example: An employee earning $11,500 enrolls for three times Base Annual Earnings for supplemental life insurance coverage: Base Annual Earnings Multiple Selected $11,500 X 3 $35,000 Coverage Amount (Rounded to nearest $1,000) Your coverage amounts can change after your initial enrollment. Changes in coverage amounts due to changes in Base Annual Earnings will become effective as of the date of the salary change. No medical evidence will be required for automatic changes in coverage amounts. If you wish to increase (change) your coverage election, medical evidence of insurability will be required for any level of increase. Benefit amounts are reduced by 35% of the pre-65 amount at age 65 and 50% of the pre-65 amount at age 70. Your benefit amount will be rounded to the nearest $1,000 after the applicable percentage is applied. After your benefit amount is reduced, due to age, there will be no further increases in the amount of your coverage. Will Preparation Service You have access at no additional cost to the Will Preparation Service for employees who participate in the Supplemental Life Insurance plan. Will Preparation is offered by Hyatt Legal Plans, a MetLife company, and provides eligible employees and their spouses or domestic partners with access to a participating plan attorney for preparing or updating a will at no charge. To access this service or obtain additional information, contact Hyatt Legal Plans at 800-821-6400. Your group number for this service is 109702. Please note at this time the Will Prep service is not available to residents of the State of Texas. Beneficiary Support Benefit Financial counseling is available to Beneficiaries of employees who pass away. This benefit is provided through MetLife Advice for Beneficiaries-Delivering the Promise See the last page of this section for an important insert regarding the Delivering the Promise Benefit. Supplemental Term Life Insurance Plan Accelerated Benefit Option Individuals covered by the Supplemental Life Plan Option and diagnosed with a life expectancy of less than 12 months may apply, while still living, to receive a portion of their benefit under the Supplemental Life Plan Option. This benefit cannot exceed 50% of your basic and supplemental life benefit combined to a maximum of $750,000. A physician s certification is required and is subject to review and concurrence by MetLife. The subsequent death benefit will be reduced by the amount of the accelerated benefit payment. If you elect to receive an accelerated benefit, you must continue to pay premiums under the Supplemental Life Plan Option, unless you qualify to have the premiums waived. Accelerated benefits may be taxable. Before applying for this benefit, you should consult your personal tax advisor. Portability and Conversion of Life Insurance Portability If your coverage ends due to termination of employment with Lowe s, including retirement, or loss of eligibility, due to your change in employment classification from full-time regular status, you may be eligible to continue all or part of the coverage that ends. Portable group term life insurance is not available if coverage ends because Lowe s policy with MetLife terminates or coverage ends for a classification of employees. You will receive an Election of Portable Coverage form from MetLife. To port your coverage, follow the instructions on the election form. If you have questions about porting your coverage, you can call MetLife at 1-866-492-6983. Once received, you must: Complete the application; and Send the application, to MetLife at the address shown on the application, within 31 days after the date that your coverage ends. If you are applying for coverage, your portable group term life insurance will begin on the first day of the month following the day that coverage under the policy ends. The premium due will be based on MetLife s then current rate for your current age. 3

Your amount of portable group term life insurance will not be greater than the lesser of: The amount of combined basic and supplemental life coverage in force prior to coverage cancellation: or $1,000,000 ($179,000 for Michigan residents) The insurance benefits under the portability certificate may not be the same as those under the Lowe s group policy. Conversion If all or any part of your coverage under the Supplemental Life Plan Option ends, you may convert to an individual policy. The policy can be on any form then in use by MetLife. The policy will not contain disability or supplementary benefits. You will receive a conversion notification from MetLife. If you want to convert your basic life coverage, contact MetLife at 1-877-ASK-MET7 and arrange to speak to a Financial Services Representative who can assist you with the application process. You must apply under this option for the individual policy within 31 days after the date that your coverage ends. Proof of good health is NOT required. The premium for the policy will be based on your: Age; Class of risk; and The form and amount of the policy. If your life insurance has been in effect for at least five years and: The Supplemental Life Plan Option ends; or The Supplemental Life Plan Option ceases to include the class of employees of which you are a member; or You may convert to an individual policy on the same basis as above. The converted policy will be limited to the lesser of: The amount of life insurance you had under the Supplemental Life Plan Option, less any amount of life insurance you become eligible for under another group policy within 31 days after the Supplemental Life Plan Option ceases; or $10,000 (combined maximum for the Basic and Supplemental Life Plan Options). If premium payment is made, the converted policy will become effective at the end of the 31-day period allowed for conversion. If you die during that period, the amount of life insurance you could have converted will be paid to your beneficiary, regardless of whether you have applied for an individual life policy under the conversion privilege. If coverage is combined under the Extended Death Benefit provision, the employee has 31 days following the end of the one-year continuation period to elect to convert. Extended Death Benefit for Disabled Employees If you become totally disabled while insured, and prior to age 65, your Supplemental Life Plan Option coverage will continue in effect for one year from the last day of active employment. If your death occurs during that year, and you remain totally disabled until the date of your death, the amount of life insurance then in force will be paid if the Supplemental Life Plan Option is still in force on the date of death. To be totally disabled, you are unable to perform the material duties of you regular job and you are unable to perform any job for which you are fit by education, training, or experience. Proof of such disability must be given to MetLife within one year after your death. Following the end of the one-year continuation, you have 31 days during which to convert your coverage. Exclusions The Supplemental Life Plan Option does not cover any losses where death is caused by, contributed to by, or results from: Suicide occurring within 24 months after your initial effective date of insurance; or Suicide occurring within 24 months after the date of any increases or additional insurance becomes effective. This exclusion will apply to any amount of insurance for which you pay all or part of the premium. In addition, this exclusion will apply to any amount that is subject to the evidence of insurability requirements. Filing Claims Your HR manager or beneficiary will contact MetLife at 1-866-492-6983 to advise of a claim. 4

MetLife will certify that you are insured under the Supplemental Life Plan Option and will send the beneficiary a claim form requesting completion and return with a copy of the certified death certificate. Additional items may be necessary to process a death claim, such as police and/or autopsy reports. Any expense incurred as the result of obtaining additional items shall be the responsibility of the beneficiary and estate. When the claim has been processed, your beneficiary will be notified of the benefits paid. If any benefits have been denied, your beneficiary will receive a written explanation. See the Plan Administration section for further information on filing a claim for benefits. Definitions Base Annual Earnings: For hourly and salaried employees, the gross annual income in effect just prior to the date of loss. It includes your total income before taxes. It is prior to any deductions made for pretax contributions to a qualified deferred compensation plan, Section 125 plan, or Flexible Spending Account. It does not include income received from commissions, bonuses, overtime pay, any other extra compensation, or income received from sources other than Lowe s. Dedicated Beneficiary Services Specialized beneficiary services are included with your MetLife Group Life policy. A Helping Hand Lowe s offers MetLife Group Life Insurance because Lowe s cares about your family s future. And, in addition to life insurance protection, MetLife has established a special program called MetLife Advice for Beneficiaries, Delivering The Promise (DTP) to help beneficiaries foresee and resolve many of the issues they may face when a loved one passes away. This service is available to all participating employees in active employment and is provided at no additional charge to you and your beneficiaries. Supplemental Term Life Insurance Plan Making Life s Hardest Time a Little Easier Life s most overwhelming event - both emotional and financial - is the death of a loved one. The DTP program provides personalized assistance with the claims process and specialized services your family will need in the event of your death. It s designed to coordinate but not replace - the efforts of your employer s Human Resource personnel and your banker, attorney, CPA or other financial counselors. Personal AssistanceDelivering The Promise (DTP) is a unique service designed to provide your beneficiaries and family with the support and assistance they need during an especially difficult time. MetLife s trained DTP Specialists will work with beneficiaries to provide: Explanations regarding some of the financial questions you may be facing. Assistance with filing insurance and annuity claims with MetLife or other companies, and filing for government benefits. Aid in location grief-counseling resources, both local and national. Financial guidance to plan for current and future needs and to maintain their household. Information to help them make educated financial decisions. Help with organizing their loved one s estate. Assistance with identification of important issues that need to be addressed such as changing records and titles. Crucial Decisions The Financial Services Representatives working in the DTP program understand the crucial nature of decisions that must be made quickly - often within weeks or months. They appreciate that these decisions can have a major impact on your loved one s future financial well-being. Seemingly overnight, many questions must be answered. There s so much paperwork - where do I begin? Do I need to do anything with the will? 5

Do we have enough to maintain our current standard of living? What are the tax implications of my decisions? Do I need life insurance? And if so, how much and what type? How much Social Security are we eligible for, and how long will it be paid? What factors should I consider now that I m alone? Additional Information Upon notification of a death, MetLife will ensure that your beneficiaries are contacted by telephone by a local DTP Specialist to offer assistance. And for beneficiaries who prefer to meet with our DTP Specialists in person, we also offer the option of home visits. With Delivering The Promise you ll have added peace of mind knowing that your beneficiaries will receive trusted guidance through MetLife to provide support and assistance. Lowe s and MetLife are committed to helping employees and their beneficiaries at every stage of their lives. If you need additional information regarding the Delivering The Promise program, please contact MetLife at 1-877- ASKMET7 (1-877-275-6387).. 6