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Life Insurance Benefit

Your Teamster’s Health and Welfare Fund provides financial protection for your family or others in the event of your death.

Plan Benefits
In the event of your death from any cause, (on or off the job) your beneficiary will receive a life insurance benefit of $50,000 for fulltime employees and $25,000 for part–time employees.

You must name a beneficiary when completing your Teamster’s Health and Welfare Fund census card, which is available from the Fund Office. You may name anyone as your beneficiary and you may change your beneficiary at any time.

Payment to Beneficiary
More than one named Beneficiary will share equally unless the Employee clearly designates the order of rights. The share of Beneficiary who dies before the Employee will pass to any surviving Beneficiaries in the order the Employee designated.

Payment may be made to the executor or the administrator of the Employee’s estate if:

• An Employee dies without having designated a Beneficiary, or
• No designated Beneficiary survives the Employee.

Facility of Payment
If the Employee has no surviving Beneficiary, we have the right to make the payment to any one of the classes listed below:

• The Employee’s spouse
• The Employee’s children
• The Employee’s parents
• The Employee’s brothers and sisters

Living Benefit Option

What is the living benefit option?
With the Living Benefit option, an individual covered by Fort Dearborn’s group term life insurance who becomes terminally ill with a life expectancy of 12 months or less, can receive part of his or her life insurance benefits while he or she is still alive. This money, which is paid in a single lump sum payment equal to a preset percentage of total life insurance coverage, can be used to pay medical costs and/or normal living expenses.

The benefit is intended to act as financial help during a difficult time; it is not a substitute for long–term care coverage.

How does the living benefit option work?
If diagnosed with a terminal illness with a life expectancy of either 12 months or less the covered employee or spouse should contact the employer’s benefits manager to apply for living benefits.

When benefits are approved, the covered individual may receive up to 50 percent of the total face amount of his or her total life insurance coverage, up to a maximum of $150,000, while he or she is still living. The benefit is paid in a single lump sum and is available only once during a lifetime. Upon death, the covered individual’s beneficiary receives any remaining life insurance death benefit.

Who is eligible for the living benefit option?
An individual is eligible to receive living benefits if insured under Fort Dearborn group term life plan and if he or she receives a written diagnosis of terminal illness that limits life expectancy to less than 12 months. An individual is not eligible to receive living benefits if any of the following conditions exist:

• The life insurance benefits are assigned
• The terminal illness results from attempted suicide while sane or insane or intentionally self–inflicted injuries
• Some portion of the life insurance benefit is to be paid to a former spouse as part of divorce agreement

Premium Waiver Benefit
Total Disability or Totally Disabled means, when used in connection with the Life Insurance Benefit, an Employee’s continuing inability, as a result of injury or sickness, to perform the important duties of any job for which he is or becomes qualified by reason of education, training or experience.

An Employee’s Life Insurance may be extended beyond termination provisions under this Policy if:

• We receive satisfactory proof that he became Totally Disabled while insured and before age sixty (60); and
• He has been Totally Disabled for a least five (5) consecutive months; and
• The Employee sends this proof within twelve (12) months after the date he becomes Totally Disabled.

• It was not possible for proof to be sent within twelve (12) months; and
• That it was sent as soon as possible.

The Life Insurance Amount that Remains In Force
The insurance company pays the life insurance amount in force for the Employee if he dies while Totally Disabled. The amount of insurance that remains in force is the amount for which the Employee was insured on the last day of active employment. All reduction provisions in effect on that date will apply to the extended amount.

When Life Premium Waiver Ends
Extended Life Insurance for the Employee stays in force until the earliest of these:

1. The Employee is no longer Totally Disabled; or
2. The Employee converts his insurance; or
3. The Employee fails to submit proof that he is still Totally Disabled; or
4. The Employee refuses to be examined as required; or
5. The Employee reaches age seventy (70).

When the Employee is No Longer Eligible for Extended Life Insurance
If the Employee:

1. Is no longer eligible for the extended insurance; and
2. He returns to work for the Employer; and
3. Premium payments on his behalf are resumed; the Employee becomes insured for the amount of insurance for which he is eligible by class. If the Employee does not return to work for the Employer, the Employee may elect to convert any insurance for which he is eligible.

Filing a Claim for Life Insurance Benefits
Call the Fund Office to apply for life insurance benefits. Upon receipt of the Death Certificate the life insurance claim will be processed.

Converting Your Life Insurance
If your Teamster’s Life Insurance ends for any reason, you may convert your coverage to an individual policy. To convert your policy, you will not have to show proof of good health. You must apply to convert your coverage within 31 days after your coverage ends. You may choose among the policies being written by the insurance company at any time of your application. You may elect amounts up to but not exceeding your current coverage level.