Voluntary Dependent Portable Term Life (DTL) Coverage
Dependent Portable Term Life Insurance provides group term life insurance for
your spouse and/or dependent child(ren) in an amount you elect. The coverage
amount you purchase applies to your spouse as well as your dependent child(ren)
over the age of 6 months through to their 19th birthday or 24th birthday if a
full time student. Children ages 14 days to six months are covered by $500 of
life insurance. In the event of the death of your spouse and/or dependent
child(ren), you will receive a benefit in the amount of your dependent life
coverage election.
Your Dependent Spouse Life Insurance Plan automatically includes an Accelerated
Death Benefit Option, which provides greater flexibility for a terminally ill
individual. If you become terminally ill, you may need or want to receive a
portion of your life insurance benefit to meet expenses or make specific plans.
This policy provides an accelerated death benefit payment if you become
terminally ill and have a medical prognosis of 12 months or less to live. Your
accelerated death benefit will pay 75% of your elected amount up to a maximum of
$390,000 for employee and $18,750 for dependent spouse. This payment will be
made in one lump sum and is payable once during your lifetime. Once this benefit
has been paid, the amount of life insurance you have will be reduced by the
accelerated payment. Payment of premiums on the full amount of life insurance
must continue. The accelerated benefit is paid directly to you, the insured, and
it may be taxable as income.
The cost of Dependent Life Insurance is based on a single monthly rate according
to the amount of coverage purchased.
Regulations for coverage:
New Hire elections made within 31 days of your initial hire, the following
election rules apply:
$5,000 to $25,000 guaranteed issue
(Evidence of Insurability is not required).
Open Enrollment elections, the following election rules apply:
Evidence of Insurability is required
for any amount elected.
The amount of dependent Portable Term Life Insurance will be reduced by 50%
on your spouse’s 70th birthday.
If you apply for Dependent Portable Term Life Insurance coverage before the
birth of your first child, coverage begins fourteen days after the child’s date
of birth. If you apply within 31 days of birth, coverage begins on the date you
apply. If you apply after 31 days, you must wait until the next open enrollment
and provide evidence of insurability to Aetna. Coverage will begin when your
application is approved.
Disabled Dependent Children Covered under Dependent Life
Dependent Life Insurance for
your fully disabled dependent child may be continued past the maximum age for
dependent children. However, such coverage may not be continued if the child
has been issued a personal life conversion policy.
Your child is fully disabled
if:
He or she is not able to earn his or her own living because of mental
retardation or a physical disability which started prior to the date he or
she reaches the maximum age for dependent children; and
He or she depends chiefly on you for support and maintenance.
Proof that your child is fully disabled must be submitted to Aetna no later
than 31 days after the date your child reaches the maximum age.
Coverage will cease on the first to occur of:
Cessation of the disability.
Failure to give proof that the disability continues.
Failure to have any required exam.
Termination of Dependent Coverage as to your child for any reason other
than reaching the maximum age.
Aetna will have the right to require proof of the continuation of the
disability. Aetna also has the right to examine your child as often as needed
while the disability continues at its own expense. An exam will not be required
more than once each year after 2 years from the date your child reached maximum
age.
(Used in conjunction
with the Disabled Child Coverage Continuation Request form to verify
disability.)
Portability—Supplemental and Dependent Term Life Only
Portability allows employees and qualified dependents to continue their
life insurance upon termination, retirement or loss of coverage from MCCCD.
Employees are eligible up to the age of 98 and spouses are eligible up to the
age of 70. Dependent child(ren) are eligible up to the age which is one year
younger than the age at which he or she will cease to meet the Plan's definition
of dependent. Employees must be actively at work at the time coverage is
terminated. Disabled members are not eligible to port their coverage.
