Group Plan Example BLET 290 Group Plan Example Life, AD&D, STD, LTD This presentation is not a contract or policy of insurance. It contains general information and intended to explain some of the major features of the coverage provided by the group policy and certificate. The specific terms of your group policy and certificate will govern any claim for benefits you may make. Visit www.rrb.gov for specific information regarding RRB disability benefits.
Group Plan Purpose Protect members and their families from loss of income due to: Injury Illness Death Dismemberment Quick Facts BLET members have 55% to 70% of their income not protected by Railroad Retirement and current contract benefits. On average an Engineer will go off on STD twice over their working career.
Group Voluntary Life /AD&D Example • Guaranteed Issue amounts up to $200,000 – Member can elect limits of $10,000 to $500,000 • Includes equal amount of AD&D (Double Indemnity) • No pre-existing condition limitations • Premium is banded in five year increments • Can add spouse and children to policy – Spouse can apply for up to 50% of what member elects – Spouse is guaranteed issue $30,000 – Children are guaranteed issue $10,000 per child
Group Voluntary AD&D Benefits Accidental Death & Dismemberment • 24 hour Accident coverage. • Included in the cost of Life Insurance. • Pays 100% of coverage in the event an accident causes loss of Life , two limbs, the sight of both eyes, one limb and the sight of one eye, or speech and hearing in both ears or quadriplegia. • Pays a graded benefit for less severe injuries. The Group Advantage
Group Voluntary STD Example • Pays 60% of weekly earnings • No Waiting Period for Injury. Starts Paying on DAY 1 for injury • Starts Paying DAY 8 for sickness • Pays for 13 weeks • No pre-existing condition limitations • No offsets until 100% of pre-disability earnings are attained (Stackable with RR & Contract Benefits) • Premium is banded in five year increments Short Term Disability
STD Payout Example 90K Member Earning $90,000 per year ( $1,730 per Week ) Week 1 Week 2-13 $0.00 $330.00 Current Benefits (RRB STD) $1,038.00 $1,038.00 The Hartford (60% of weekly) $1,038.00 $1,368.00 Combined Total Payment 13 week income = $22,490 (taxable) STD RR 13 week income = $3,960 (non-taxable) With STD Hartford 13 week income = $17,454 (non-taxable)
Group Voluntary LTD Example • Pays 60% of Monthly Earnings • 90 Day Waiting Period • Pays until nominal age of retirement as set by Social Security Administration • Age 66 for persons born between 1942 and 1960 • Age 67 for persons born after 1960 • Premium is banded in five year increments • Benefit is offset by RRB & Contract Benefits Long Term Disability
LTD Payout Example 90K Member Earning $90,000 per year ($7,500.00 per Month) 90 Day Waiting Period Example 1 Example 2 Example 3 Railroad Retirement Board $0.00** $1,200.00 $2,400.00 ( Occupational Long Term Disability ) $4,500.00* $3,300.00* $2,100.00* The Hartford Combined Total Payment $4,500.00 $4,500.00 $4,500.00 (60% of Monthly) * Benefits are non-taxable **RRB requires 240 months of service to qualify for benefits Benefits pay to age 66 or 67 if born after 1960.
Monthly Premium Example BLET DIV 290 Member with a $90,000 per year income. Member Engineer AGE 44 Member Life and AD&D (200K): $38.00 STD Premium: $67.51 Spouse Life and AD&D (30K): $5.70 LTD Premium: $29.25 Child Life and AD&D (10K): $1.10 Total: $96.76* Grand Total: $141.56 *Premium is determined by age and income.
CN/WC Claims Payout (22 Months) STD- 51 claims submitted 47 claims approved 4 claims denied Total claim payments to union members= $ 334,129 LTD- 4 claims submitted 4 claims approved 0 claims denied Total Claim Payments to union members= $29,874 Total Reserves for LTD claims= $26,708 Life- 2 claim submitted 2 claim approved 0 claims denied Total claim payments to union members/families= $290,012.33 Total Claims Paid To Date: $654,015 Estimated Future Total: $680,723
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