SUPPLEMENTAL GROUP TERM LIFE

SGTAB1HBA0116 2016 SUPPLEMENTAL GROUP TERM LIFE This section of your benefits handbook outlines the major provisions of Deseret Mutual s Supplemental Group Term Life (SGTL) insurance plan as of January 1, 2016. This document also serves as your Summary Plan Description, or SPD. KEY POINTS OF THE PLAN You can choose up to $1 million in coverage, based on your salary. Coverage is available for your spouse and eligible dependent children. You take advantage of low group rates. You pay the entire cost for coverage; your employer does not contribute. To qualify, you must be an eligible employee enrolled in Group Term Life insurance. Update your beneficiary designations online at www.dmba.com. ELIGIBILITY & ENROLLMENT If you re an eligible employee enrolled in Deseret Mutual s Group Term Life insurance plan, you may apply for SGTL insurance. You must meet Deseret Mutual s health standards to be eligible for coverage. 1

You can apply for SGTL insurance for your spouse and eligible dependents whether you re enrolled in SGTL or not. They don t have to be enrolled in Group Term Life to be eligible for this supplemental coverage. If you apply for your eligible dependents within 30 days of eligibility, they don t need to meet health standards for the minimum coverage, or guaranteed amounts. These amounts are $1,000 or $3,000 for your children and $3,000 for your spouse. (See Spousal Coverage and Coverage for Dependent Children.) Your dependents must meet health standards for additional coverage. To enroll by paper form, complete the Supplemental Group Term Life Insurance Application available from Deseret Mutual. To enroll online, log into www.dmba.com. Under the My Home Options menu on the left side of your home page, click on My Benefits and choose Change My Enrollment. COVERAGE Coverage begins on the first day of the month after Deseret Mutual approves your application. As an active employee, your coverage is based on a formula using your salary factor and your salary multiple, up to $1 million. Salary factor If your annual income is Your salary factor is. Less than $10,000 $10,000 $10,000 but less than $20,000 $20,000 $20,000 but less than $30,000 $30,000 Salary multiple And so on plus $10,000 Choose a salary multiple of 1, 2, 3, 4, 5, or 6 times your salary factor. For example, if your salary factor is $20,000, you may choose $20,000, $40,000, $60,000, $80,000, $100,000, or $120,000 of coverage. Your coverage increases as your salary increases. Once you turn 60, your coverage decreases on April 1 after your birthday as shown here: Age Coverage reduces to... 60 to 64 75% 65 to 69 50% 70 to 74 35% 75 and older 25% 100% equals the coverage you have before age 60 Please note, you cannot change your coverage while you are receiving Deseret Mutual Disability Plan benefits. Spousal coverage Your spouse is eligible for up to $200,000 of insurance coverage. If your spouse enrolls within 30 days of his or her eligibility date, $3,000 of coverage is available without meeting health standards. Your spouse must meet health standards for higher levels of insurance coverage ($20,000 to $200,000, in $20,000 increments) or for any coverage if he or she enrolls after 30 days from the eligibility date. Your spouse s insurance coverage reduces according to the same age-related schedule as your coverage. Duplicate coverage If both you and your spouse work for a participating employer, you can have coverage as an employee and as the spouse of an employee. Your dependent children can also have duplicate coverage under the policies of two eligible parents. Coverage after retirement You are guaranteed $10,000 of SGTL if you were previously enrolled in Group Term Life but did not have Supplemental Group Term Life at the time you retired. You are guaranteed $15,000 SGTL if you had SGTL in effect at the time of retirement. 2

You must meet health standards for higher coverage amounts $15,000 or $25,000 or for all levels of coverage if you were not enrolled in SGTL as an active employee. If you re 75 or older, the maximum coverage is $15,000. For information about the eligibility requirements, please see the General Information section of your benefits handbook. You must apply for this coverage before you retire. After you retire, you cannot enroll or increase your coverage. Spousal coverage after retirement If you qualify to continue SGTL coverage when you retire, your spouse can choose among four amounts of insurance coverage: $5,000, $10,000, $15,000, or $25,000. Your spouse must meet health standards for $10,000, $15,000, or $25,000 of coverage, or for all levels of coverage if your spouse was not enrolled in SGTL insurance before you retired. If your spouse is 75 or older, the maximum coverage is $15,000. Your spouse must apply for this coverage before you retire. After you retire, your spouse cannot enroll or increase coverage. Coverage for your surviving spouse If your spouse s SGTL insurance is in force at the time of your death, your spouse does not need to meet health standards to continue $5,000, $10,000, $15,000, or $25,000 of coverage as a surviving spouse. The amount selected must be equal to or less than the coverage he or she had in force before your death. If your spouse is not enrolled in SGTL at the time of your death, a maximum $5,000 of coverage is available. To qualify for this coverage, your spouse must meet health standards and must enroll within 60 days of your death. Coverage for dependent children You may choose between three insurance options for your eligible dependent children: BIRTH TO 6 MONTHS 6 MONTHS TO 26 YEARS OPTION 1 $1,000 $ 3,000 OPTION 2 $ 7,500 OPTION 3 $15,000 If you enroll your dependent children within 30 days of their eligibility dates, or within 60 days for a newly acquired dependent, Option 1 is available without having to meet health standards. After children reach 6 months of age, they are eligible for Options 1, 2, or 3, but they must meet health standards for Options 2 and 3. Also, dependents must meet health standards for all options if you enroll your children more than 30 days after their eligibility dates or more than 60 days after acquiring a new dependent. These levels of coverage may continue when you retire. If your dependent children are not enrolled when you retire, they can enroll at that time. But again, they must meet health standards. Coverage for surviving children Surviving children can maintain the same level of coverage they have when their covered parent dies ($3,000, $7,500, or $15,000). Coverage does not automatically increase for children enrolled in Option 1 ($3,000) when the parent dies. If your surviving children are not enrolled in SGTL at the time of your death, a maximum $3,000 benefit is available. To qualify for this coverage, your children must meet health standards and enroll within 60 days of your death. For more information about benefits for surviving dependents, please contact your employer or Deseret Mutual. PREMIUMS To determine the monthly premium for you and your spouse, see the premium tables at the end of this handbook section. Find the amounts per thousand opposite your age, or your spouse s age, as of last April 1. Then multiply these amounts by the number of thousands of coverage for which you or your spouse are applying. 3

Unless you make changes in your coverage, your premiums remain the same until April 1 of each year. Then your premium and coverage automatically adjust to the appropriate levels based on your income and age. (If your salary increases, the adjustment happens at the next April 1; if your salary decreases, the adjustment does not happen until the second year.) Premiums for dependent children The following premiums apply to children of active or retired employees. The monthly premium covers all of your eligible children, regardless of how many children you have. If you have a child who has less coverage than the others, you pay the higher amount. $0.44 for $3,000 of coverage $0.96 for $7,500 of coverage $1.74 for $15,000 of coverage Premiums for surviving spouses Monthly premiums for surviving spouses are based on the age of the surviving spouse. See the premium tables at the end of the handbook section for more information. Find the amounts opposite the surviving spouse s age as of last April 1. Premiums for surviving children Monthly premiums are $0.44, $0.96, and $1.74 for insurance coverage of $3,000, $7,500, and $15,000 respectively. Premiums while receiving disability benefits If you re receiving Deseret Mutual Disability Plan benefits, you re responsible for paying the SGTL premiums during the 45-day waiting period, as well as for the first six months after disability benefits begin. After the six-month period, your premiums will be waived. Your coverage continues at the same level as when you were working. BENEFITS & BENEFICIARIES If one of your insured dependents dies, benefits are paid to you. If you die, benefits are paid to the primary beneficiary on file when the death occurs. Deseret Mutual can only release information to your designated primary beneficiary. If you designated multiple beneficiaries and a primary beneficiary dies before you do and you don t designate a new beneficiary, the benefit payment for the predeceased primary beneficiary is equally distributed among the remaining living primary beneficiary(ies). The same applies to predeceased alternate beneficiary(ies) if no primary beneficiaries exist. If you die without naming a beneficiary or if your beneficiary dies before you do and you have not named an alternate beneficiary or you do not have a valid beneficiary benefits are paid to your estate. The court may recognize the personal representative you named in your estate plan. Or a family member may be appointed as the personal representative through the court system. This personal representative files the necessary paperwork with Deseret Mutual and we release your funds to the personal representative on behalf of your estate. Because a named beneficiary may die or you may divorce and remarry, you should review your beneficiaries on a regular basis. You may change your beneficiary at any time on our website or in writing. We suggest you always provide an alternate beneficiary and make sure your beneficiaries are current. You may also consider a trust (a legal document in which an individual gives fiduciary control of property to a person trustee or an institution for the benefit of the beneficiaries). If you choose a trust, Deseret Mutual will request a full copy of the trust for legal review before benefit payments can be made. If your beneficiary is a minor and a trustee has not been named to receive the minor s share, 4

a guardian must be appointed through a court proceeding, and a certificate of appointment and qualification must be sent to Deseret Mutual. If a guardian is not appointed, Deseret Mutual will hold the funds at simple interest until the minor is of age and requests the payment. ELIGIBLE DEPENDENTS Your eligible dependents include your spouse and dependent children. Your spouse is defined as a person of the opposite sex who is your legal husband or wife. For more information about who are your eligible dependents, see Dependent in the Definitions section of your benefits handbook. EXCLUSIONS Benefits are not available for loss caused wholly or partly, directly or indirectly, by: War or act of war, or service in the military forces of any country at war, declared or undeclared. War includes hostilities made by force or arms by one country against another, or between countries or factions within a country, either with or without a formal declaration of war. This exclusion does not apply while you are pursuing an assignment given and authorized by your employer that requires you either to reside outside of your country of residence or to travel, except for routine commuting to and from work. Your dependents are also exempt from this provision if they travel or reside with you while you are pursuing such an assignment. Suicide (if the coverage was in force for less than two years before the suicide). Any falsification, omission, or misstatement about information used to determine eligibility for coverage during the application and underwriting process may be grounds to void coverage. FILING CLAIMS To receive benefits, you or your beneficiary must: Step 1: Inform your employer or Deseret Mutual of the death. Deseret Mutual will send you or your beneficiary a packet of applicable forms. Step 2: Complete the forms in the packet. Step 3: Obtain a certified copy of the death certificate. Step 4: Return the completed forms and death certificate to Deseret Mutual. CLAIMS REVIEW & APPEAL PROCEDURES If your claim is denied and you feel that your claim was denied in error, you have the right to file an appeal. You must submit your appeal in writing within 12 months from the date we send your adverse benefit decision. For more information about how to appeal a claim, please refer to the General Information section of your benefits handbook. NOTIFICATION OF DISCRETIONARY AUTHORITY Deseret Mutual has full discretionary authority and the sole right to interpret the plan and to determine eligibility. All Deseret Mutual decisions relating to plan terms or eligibility are binding and conclusive. NOTIFICATION OF BENEFIT CHANGES Deseret Mutual is subject to the Employee Retirement Income Security Act (ERISA) and reserves the right to amend or terminate this plan at any time. If benefits change, we will notify you at least 30 days before the effective date of change. 5

Legal Notice We have made every effort to accurately describe the benefits and ensure the information given to you is consistent with other benefit-related communications. However, if there is any discrepancy or conflict between information in this document and other plan materials, the terms outlined in the Legal Plan Document will govern. TABLE A: SUPPLEMENTAL GROUP TERM LIFE MONTHLY PREMIUM RATES PER $1,000 PER $1,000 PER $1,000 Younger than 35 0.032 44 0.062 54 0.150 35 0.032 45 0.068 55 0.168 36 0.034 46 0.074 56 0.188 37 0.036 47 0.082 57 0.208 38 0.038 48 0.090 58 0.232 39 0.040 49 0.098 59 0.258 40 0.042 50 0.106 60 to 64 0.360 41 0.046 51 0.116 65 to 69 0.632 42 0.050 52 0.126 70 to 74 1.063 43 0.056 53 0.136 75 or older 1.688 TABLE B: SURVIVING SPOUSE SGTL MONTHLY PREMIUM RATES FOR $1,000 FOR $1,000 FOR $1,000 Younger than 35 0.032 45 0.068 56 0.188 35 0.032 46 0.074 57 0.208 36 0.034 47 0.082 58 0.232 37 0.036 48 0.090 59 0.258 38 0.038 49 0.098 60 to 64 0.360 39 0.040 50 0.106 65 to 69 0.860 40 0.042 51 0.116 70 to 74 1.380 41 0.046 52 0.126 75 to 79 2.210 42 0.050 53 0.136 80 to 84 3.540 43 0.056 54 0.150 85 and older 6.370 44 0.062 55 0.168 6