Federated States of Micronesia GROUP LIFE INSURANCE PROTECTION FOR YOUR FAMILY’S FUTURE Program Effective January 1, 2013 Participating Entities of Pohnpei, Kosrae, and Yap
FSM Group Life Insurance Life Insurance Considerations Why Life Insurance Is Important – Provides for peace of mind Final expenses Survivor income Educational funding Pays off debt – Creates an immediate estate
FSM Group Life Insurance Life Insurance Considerations Things to consider – How much will I need for my final expenses Funeral costs Pay off bills Pay off debt obligations – What are my family’s needs for ongoing income – What are my children’s education needs
FSM Group Life Insurance Life Insurance Considerations Your employer plan will provide basic life insurance protection Through the Dependent Options, your family members will be protected Through the Supplemental Option you will have additional coverage that will enhance your family’s ability to continue in a manner you would want if something happens to you Complete an enrollment form today!
Basic Life Insurance Federated States of Micronesia Group Life Insurance Program
FSM Group Life Insurance Basic Life Insurance Basic Life Insurance coverage is a multiple of your Base Annual Salary. The multiple is 2x, 3x or 4x subject to the benefit plan elected by your employer. There are two exceptions to the above: SSA (0708) and PUC (0908) Both have a level benefit plan where the Basic Life insurance coverage amount is level and not based upon salary. The premium amount is also level and the same for all employees.
FSM Group Life Insurance Basic Life Insurance The Basic Life plan provides insurance benefits for Active Employees. If your employer has chosen a level benefit option, rather than a salary based option, the max age for coverage is 79. When an individual under that option turns 80, the coverage ceases. The biweekly premium rate is $0.45 per $1,000 of coverage. Your employer pays a percentage of the premium for this part of your employee benefit package.
FSM Group Life Insurance Basic Life Insurance Basic Life Insurance benefits are rounded to the next higher $1,000. Minimum benefit - $5,000 Maximum benefit - $100,000 The basic life insurance benefits reduce by: 25% at age 65 50% at age 70 75% at age 75 $5,000 benefit at age 80 and over The maximum benefit amounts above are calculated prior to the reduction, and the minimum after the reduction. If your employer has chosen a level benefit option, rather than a salary based option, your coverage is not subject to reduction.
FSM Group Life Insurance Basic Life Insurance Example Miguel is an employee of FSM Telecomm. He is 64 years old and earns a salary of $17,653.83 annually. If the FSM Telecomm multiple were 3x, Miguel’s coverage would be calculated like this: Salary ($17,653.83) x 3 = $52,961.50 1. That is rounded up to the next $1,000 = $53,000.00 in benefit 2. Next year, when Miguel turns 65, his benefit will change like this: Salary ($17,653.83) x 3 = $ 52,961.50 1. That is rounded up to the next $1,000 = $53,000.00 2. Due to his age, that amount is reduced by 25% = $39,750 in 3. benefit. His premium will also reduce in proportion to the reduction in 4. coverage.
FSM Group Life Insurance Basic Life Insurance Accidental Death and Dismemberment This benefit is included at no additional premium charge to Active Employees who are less than age 75. It is payable in addition to the Basic Life Insurance benefit. For Loss of Life: 1X Basic Life Benefit For Dismemberment: Loss of Hands or Feet 1X Basic Life Benefit Loss of sight of both Eyes 1X Basic Life Benefit Loss of one Hand and sight of one Eye 1X Basic Life Benefit Loss of one Hand and one Foot 1X Basic Life Benefit Loss of one Foot and sight of one Eye 1X Basic Life Benefit Loss of one Hand or one Foot ½ of Basic Life Benefit Loss of sight of one Eye ½ of Basic Life Benefit
FSM Group Life Insurance Basic Life Insurance Waiver of Premium This benefit is included at no additional premium charge to Active Employees who are less than age 60 and are insured in the Group Life Program. If you become Permanently and Totally Disabled, your coverage will continue without premium charge after a nine-month waiting period if your request is approved by IAC. You must request to be considered for this benefit within 61 days after your last premium payment was made as an active employee and premiums for the nine-month waiting period, both Employee and any Employer portions, must be paid in full at the time the request for Waiver of Premium is made . Medical documentation from your physician supporting your disability is required. Permanent Total Disability is defined as a disability resulting from bodily injury or disease which prevents you from engaging in any business or occupation and from performing any work for compensation or profit for at least nine months and such disability is expected to continue until your death.
Dependent Life Insurance Federated States of Micronesia Group Life Insurance Program
FSM Group Life Insurance Dependent Life Insurance The Dependent Life Insurance options allow Eligible Employees to enroll for coverage insuring the lives of the employee’s spouse and/or eligible children. The premium cost for this additional coverage will be paid by you, the employee, through payroll deduction. New to this contract, both spouses may now elect to cover each other as a dependent; even if they are both Active Employees covered by the Group Life Program. Option ‘A’ Option ‘B’ Option ‘C’ Bi-weekly Rate $9.75 $6.45 $6.50 Coverage on Spouse $10,000 $10,000 None Coverage on Children $3,000 None $3,000 Coverage on Children is from Age 15 days through 18 years. (24 years if a full time student.)
FSM Group Life Insurance Dependent Life Insurance Children with Disabilities This benefit is included at no additional premium charge to Active Employees who are enrolled in the Group Life Program and either Dependent option A or C. A dependent child will include a previously eligible dependent child of the employee who has reached the limiting age for dependent coverage but who cannot perform the normal activities of daily living and cannot financially support himself/herself, because of a physical or mental handicap. The employee must initially, and annually thereafter, provide to IAC satisfactory proof following the child’s attainment of the limiting age.
FSM Group Life Insurance Dependent Life Insurance Children with Disabilities If an enrollee elects the Dependent’s Term Life Insurance and has now, or in the future, a child with disabilities, then in order to enroll for this coverage, the enrollee must complete a Child with Disability Eligibility Form and must submit it along with the child’s medical records to IAC for review and approval. For employees currently enrolled in Dependent’s Term Life, a Child with Disability Eligibility Form must be completed and submitted to IAC prior to April 13, 2013. Eligibility of all dependent children claims shall be certified by a government official and/or the IAC General Agent prior to the submission of a claim for dependent children benefits.
Supplemental Life Insurance Federated States of Micronesia Group Life Insurance Program
FSM Group Life Insurance Supplemental Life Insurance The Supplemental Group Life insurance program available since October 1 st , 2007 is coming to an end on December 29 th , 2012. However, that program is being replaced by a different, but better, Supplemental Group Life insurance program. This change was made at the request of the Micronesian Executive Insurance Board.
FSM Group Life Insurance Supplemental Life Insurance The new Supplemental Life Insurance plan allows Eligible Employees to enroll for additional coverage beyond the Basic Life Insurance program. Supplemental Life Insurance is available to Active Employees less than age 70. The full premium cost for this additional coverage will be paid by the employee through payroll deduction. All supplemental coverage ceases at age 70.
FSM Group Life Insurance Supplemental Life Insurance Individuals previously enrolled in the Attained Age Rated Supplemental Life Insurance Plan whose coverage has not lapsed for nonpayment of premium, or otherwise terminated must: re-enroll in the new Graded Death Benefit Supplemental Life Insurance 1) Plan between October 15, 2012 and November 15, 2012 ; answer the two health questions on the enrollment form: 2) a. If the answer is “no” to both health questions, the employee will be accepted for the requested amount of premium and corresponding coverage. b. If the answer is “yes” to either health question, the employee will be covered up to, but not exceeding, their current amount of coverage but not less than the $10 biweekly premium amount. Individuals who are not current on premium or not previously enrolled in the Supplemental Life Insurance Plan must complete an enrollment form and an Evidence of Insurability (EOI) form.
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