Developed for the Employees of
County of Fresno
“As long as you’ve got your health...”
How many times have you heard that one? Well, there’s a lot of truth in
it. As long as you’re physically healthy, you can work, play, take care of
your family, and enjoy life. The same holds true of your fiscal health. For
long-term financial well-being, you need to understand where you are, be
aware of where you want to go, and have a plan to get you there.
The foundation of any financial plan is the assurance that you
have the momentum to keep moving forward, and the ability to handle
problems that occur along the way.
No one wants to think about this, but ... if something were to
happen to you or your spouse, all your hard work—and everything you
have—could be lost unless you take steps to protect yourself and your
family. Having adequate insurance coverage is not only the basis for a
sound financial blueprint; it also provides the protection you need to help
ensure that your home, your family, and your finances will be protected if
you or your spouse should die or become seriously ill.
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You do. Single or married. Buying your first home or preparing for retirement. Raising
children or sending them off to college. No matter where you are in life, insurance
should be part of any financial plan. But it’s only part of the equation. To achieve your
financial goals—whether it’s college for your children, a comfortable retirement or just
a great vacation—you need to save. Consistently and starting right now.
WHO NEEDS GROUP UNIVERSAL LIFE INSURANCE?
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GROUP UNIVERSAL LIFE INSURANCE (GUL), offered through CIGNA, can help you protect what you have, and accumulate cash value for the future. With GUL, you can:
• obtain coverage for yourself and your family
• put money into a Cash Accumulation Fund, where it will earn tax-deferred interest By enrolling within 31 days of your eligi- bility date if you are a new employee, you can apply for specific amounts of GUL insurance— without providing evidence of insurability.
Because your employer is making this plan available to you, you will benefit from:
• affordable group rates
• convenient payroll deductions
• access to knowledgeable service representatives
• coverage you can take with you
THE FLEXIBILITY YOU WANT
THE PROTECTION YOU NEED
The only thing about GUL that is “set in stone” is your family’s need for life insurance protec- tion. Everything else is designed according to your needs and wishes. You choose the amount of protection you need, up to the plan’s maxi- mum amount. You choose your coverage— whether it’s just for yourself, or for your spouse and dependent children as well.
GUL ... IT’S MADE TO ORDER
FOR YOU
• You pay for your insurance protection through convenient payroll deductions.
• Your GUL coverage goes with you if you retire or change employers. You keep the coverage in force simply by paying CIGNA directly and you can continue contributing to your Cash Accumulation Fund. You may pay higher group rates, but you will enjoy uninterrupted insurance protection.
• You can insure your eligible dependent chil- dren. Term insurance coverage for all your dependent children is available at a single, affordable premium. Later on, when they no longer qualify as dependents, your children can convert this coverage to their own GUL insurance plans without evidence of insur- ability. All you need to do is call the CIGNA Customer Service Center to receive the appropriate form, and have your child(ren) return the form within 90 days of their 19th birthday (or when they are no longer eligible).
GROUP UNIVERSAL LIFE
With GUL, you have the opportunity to buy substantial amounts of life insurance and to participate in a Cash Accumulation Fund at the same time. GUL offers many advantages, including:
Affordable Protection You can secure the life insurance protec- tion you need at an attractive group rate.
Your accumulated cash value grows faster because it earns a competitive rate of tax- deferred interest.
You can withdraw cash value or take low-interest loans.
Automatic payroll deductions make it easy for you to provide insurance protection and accumulate cash value.
You can increase or decrease contribution amounts as your financial situation changes. Plus, if you have adequate cash value, you can stop making contributions temporarily and continue to enjoy insur- ance protection.
This is a personal program that is yours to keep. Your coverage can be continued if you retire or change jobs.
You have an Accelerated Payment Benefit that can pay you up to 50% of your cover- age amount if you or your covered spouse becomes terminally ill.
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Accelerated Payment Benefit
Cash Accumulation
Accessibility
Convenience
Flexibility
Portability
GROUP UNIVERSAL LIFE INSURANCE
It’s a family matter. Coverage options for you and your family: COVERAGE FOR YOU
You are eligible for GUL insurance as long as
you are a full-time or part-time employee of
County of Fresno and you are actively at work
at least 20 hours a week.
• Coverage amounts available: In $10,000
units, up to the plan maximum of
$500,000 (maximum amounts not avail-
able in all states).
• Maximum amount of guaranteed insurance
available within 31 days of your eligibility
date, without evidence of insurability:
Three times your base annual salary,
rounded to the next higher $10,000, or
$150,000, whichever is less.
If you provide evidence of insurability, you
can:
• Purchase over the guaranteed amount—
up to five times your base annual salary,
rounded to the next higher $10,000, or
$500,000, whichever is less.
• Increase your life insurance coverage at
any time. Just call CIGNA’s Customer Ser-
vice Center at 1.800.828.3485 to request
a change form.
COVERAGE FOR YOUR SPOUSE
You can purchase coverage for your eligible
spouse in the following amounts:*
• In $10,000 units, up to the maxi-
mum.
• Maximum amount of guaranteed insurance
available for your spouse within 31 days
of your eligibility date, or within 31 days
of your marriage date, without evidence of
insurability: $20,000.
If your spouse provides evidence of insurabil-
ity, you can purchase:
• Coverage up to three times your base
annual salary, rounded to the next higher
$10,000, or $100,000, whichever is less.
To be eligible for coverage, your spouse
must be under age 65. For coverage to
become effective, your spouse must not
be: hospitalized, confined at home under
the care of a doctor, or unable to perform the
normal daily activities of a person of the same
age and sex.
COVERAGE FOR YOUR CHILDREN
If you elect GUL for yourself or your spouse,
you may also purchase term insurance for all
your eligible, unmarried, dependent children
who are at least 15 days old and less than
19 years old, or through age 24 if the child
is a full-time, unmarried student, and prima-
rily supported by the employee, or 19 years
of age or older and primarily supported by
the employee because of a mental or physi-
cal handicap.*
For just one premium, you can cover all your
dependent children for the following amount:
• You can obtain $10,000 of guaranteed
term insurance coverage if you enroll your
child(ren) within 31 days of your eligibil-
ity date or within 31 days of your child’s
birth or adoption.
For your children’s coverage to be effective,
they must not be hospitalized, confined at
home under the care of a doctor, or unable
to perform the normal daily activities of a
person of the same age and sex.
The death benefit, or an increase in the death benefit, will be limited to a refund of premium if an insured commits suicide within the first two years of the effective date of the GUL coverage or within two years of the effective date of an increase in coverage. Even if eligible for both, no one can be covered as an employee and a dependent at the same time, or as the dependent of two employees.
If you meet the eligibility requirements, your cover- age will take effect on the later of the plan effective date, or the date the first payroll deduction is autho- rized. Provided your dependents’ application has been received, their coverage will take effect on the later of your coverage effective date or the date they become eligible.
If you or your dependents apply for an amount of life insurance coverage greater than the guaranteed issue amount, or apply 31 days or more after becoming eli- gible, coverage will take effect on the date we agree in writing to cover you or your dependents.
Employee or spouse coverage will end when you can- cel the coverage, when the group policy is canceled, when the premiums are not paid, on the Certificate Maturity Date (which is the policy anniversary date that is the same as or next following the insured’s 100th birthday), or when the insured dies, which- ever occurs first.
Dependent children coverage will end when your cov- erage ends (or when your spouse’s coverage ends, if their coverage is on the spouse’s certificate); when you cancel their coverage; when they are no longer eligible; or when the insured dies, whichever occurs first.
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*Please note that in certain states, restrictions may apply, and ages may vary.
Accelerated Payment Benefit
A terminal illness can pose a threat to your family’s financial security. The Accelerated Pay- ment Benefit can help prevent that illness from depleting your family’s savings by allowing you access to your life insurance benefits while you’re still living.
If you or your covered spouse becomes termi- nally ill and isn’t expected to live more than 12 months, you can receive up to 50% of your coverage amount—tax free—to help your fam- ily through this difficult time.* The money is paid out in a lump sum, directly to you, to use for whatever you wish.
To qualify to receive this benefit, you must provide medical certification from two unaf- filiated physicians that your life expectancy or that of your spouse is 12 months or less. CIGNA will send out your payment as soon as your request, medical certification, and supporting evidence are reviewed and approved. The following example illustrates how a 50% benefit would pay out on
$100,000 of coverage:
$100,000 of GUL coverage
— $ 50,000 (50% tax-free, lump-sum payment)
$ 50,000 remaining death benefit amount
GROUP UNIVERSAL LIFE INSURANCE BENEFITS
KEEPING PACE WITH THE CHANGES IN YOUR LIFE
How much life insurance do you need today? How much will you need in two years? Or five years? What if you can’t afford to continue paying your premiums due to a terminal illness? What happens if you retire or change employers? At CIGNA, we’ve thought about these ques- tions, and have developed options that can help you maintain adequate insurance levels as your needs—and your circumstances—change.
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*You may want to seek advice from your personal legal or tax advisor before exercising this option. Ted is 32 years old, makes $45,000 a year and has $130,000
of GUL coverage. He gets a salary increase of 3%. With the Auto- matic Increase Option, his insurance coverage would be increased to $133,900 ( rounded to the next higher $1,000 = $134,000). Accordingly, his payroll deduction amount would be increased to
$10.72 from $10.40 per month (multiplying the rate for his age per $10,000 of insurance).
Your initial purchase of life insurance is a step in the right direction. But it’s only a first step if you’re going to provide long-term security for your family. As your salary increases and your family grows, you should consider increasing your coverage accordingly. With the Automatic Increase Option, your GUL cover- age will automatically be raised (not to exceed the plan maximum) on each plan anniversary date when salary increases qualify you for an additional coverage amount. With this option, you reduce your risk of becoming under- insured. Your payroll deduction amount will also be increased to cover the higher amount of protection. (If you don’t want your cover- age increased, you can decline this option.) Here’s an example of how this feature works: Automatic Increase Option
CASH ACCUMULATION FUND
The Safe, Easy Way to Build Cash Value For the Future
Saving money isn’t easy, but the secret to sav- ing is simple. All you have to do is set aside a certain amount out of each paycheck—before you receive it. Even a small amount set aside on a regular basis can add up to significant savings over time. And you can do it painlessly
—through convenient payroll deductions— with your Group Universal Life Insurance Cash Accumulation Fund.
What are your goals? Money for retirement, cash for college, down payment on a home? Whatever they are, contributing to the Cash Accumulation Fund can help you reach them. The cash value you build will earn attractive, competitive interest that is income tax- deferred. The minimum rate will never be less than 4%.
To build your cash value, simply determine how much extra you wish to contribute to the plan beyond the cost of insurance. Then, sit back and watch your money grow. It’s that easy!
Tax-Deferred Accumulation
Under current tax law, the competitive inter- est you earn on your Cash Accumulation Fund is income tax-deferred as long as it re- mains in your account. And that means your interest compounds faster because it won’t be eroded by taxes each year.
Easy Access to Your Money
The money in your Cash Accumulation Fund is yours to use as financial needs arise. You can borrow against the money in your Cash Accumulation Fund or make an outright with- drawal (minimum loan or withdrawal amount is $250).
• When you do decide to withdraw your money, you’ll only pay taxes if the with- drawal amount exceeds the amount of your total contributions (cost of insurance plus Cash Accumulation Fund contributions).
• If you want to make a withdrawal, call the CIGNA Customer Service Center and ask for the appropriate form. You will be charged a
$25 transaction fee for each withdrawal.
• If you want to take out a loan, you can arrange your own repayment schedule with the CIGNA Customer Service Center. You’ll be assessed 8% interest annually on the out- standing loan amount, but you will continue to be credited with 6% on the cash value you borrowed. You will not owe any income tax on your loan unless you cancel your cover- age or your coverage lapses.
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The following bar chart illustrates how your money can grow at a 5.5% interest rate and the guaranteed minimum interest rate of 4%.
This table assumes the nonguaranteed interest rate will continue unchanged for all years shown. The actual interest rate can move up or down quarterly. Actual results can be more or less favorable than shown.
$80,000
$60,000 $100,000
10YEARS
$40,000
$20,000 0
4.00% annual interest rate 5.50% annual interest rate
$100/Mo.$50/Mo.$10/Mo.$100/Mo.$50/Mo.$10/Mo.20YEARS $100/Mo.$50/Mo.$10/Mo.30YEARS
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7 Adapt Payments to Changing Needs
With GUL, you control how much money you put into your plan. As your needs or finances change, you can easily increase or decrease your contributions. For example:
• If you get a raise, you can put more money into your Cash Accumulation Fund. Note that each contribution to the Cash Accumu- lation Fund is subject to a one-time charge of 2% to cover administrative fees and premium tax.
• If your expenses increase, you can reduce your contributions to the Cash Accumula- tion Fund, or stop them completely.
• If you have accumulated enough cash value to cover your monthly cost of insurance and administrative charges, these costs will be temporarily deducted from your Cash Accumulation Fund until you can resume payments through payroll deduction.
Choices at Retirement and Beyond GUL gives you the flexibility to keep your life insurance coverage even after you retire. Cov- erage may be maintained either by continu- ing to pay premiums directly to CIGNA or by having your premiums paid out of the Cash Accumulation Fund, if your balance is adequate.
DESIGNATING YOUR BENEFICIARIES
Life insurance is designed to provide a benefit for those who depend on you, so be sure your death benefit is designated to the people you want to protect. If you don’t designate a specific beneficiary, your GUL death benefit and any cash value you have will automatically be paid to the first beneficiary listed below who is living at the time of your death: (1) your spouse; (2) your child(ren); (3) your parents; (4) your siblings; or (5) your estate.
If you wish to designate different beneficiaries, you may do so on your application. If the listed beneficiary is a trust or a trustee, the trust docu- ment must be presented in order for the claim to be processed.
DESIGNING YOUR GROUP
UNIVERSAL LIFE PLAN
With GUL, it’s easy to tailor a plan that meets your needs. To design your own plan, use the rate chart and calculation instructions included on the following page.
When designing your plan, keep in mind that you can adjust coverage amounts as your need for insurance changes.
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Age of Employee or Spouse*
Monthly Cost of Insurance (Rates per $10,000) Employee Spouse
Dependent Child Coverage Rate
$10,000 of coverage for all
your dependent children for $2 per month Monthly Cost of Insurance
*Your age for calculating monthly premium will be updated on each plan anniversary date, January 1.
Rates for ages 70 and over are available by calling the CIGNA Customer Service Center at 1.800.828.3485.
Cash Accumulation Fund
Contributions to the Cash Accumulation Fund are optional and determined by you. Maxi- mums are based on Internal Revenue Code (IRC) limits and are subject to a 2% charge to cover administrative fees and premium tax. Since contributions are subject to very specific IRC guidelines, dependent upon your age, cost of insurance, and effective date of your certificate, it is recommended that you contact the CIGNA Customer Service Center, where a Service Representative will calculate the maximum contribution amount for you. Call 1.800.828.3485, Monday through Friday, from 9:00 a.m. to 6:00 p.m., Eastern Time. You must enroll for life insurance to contribute to the Cash Accumulation Fund.
Under 30 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69
$ 0.60 0.80 1.00 1.60 2.60 4.30 7.10 12.70 18.90
$ 0.60 0.70 1.00 1.60 2.60 4.30 6.30 10.30 14.70
How to Calculate Your Payroll Deduction for Group Universal Life Insurance
You 1. Show the amount of insurance desired
(units of $10,000 up to a maximum of 5 times your base annual salary, rounded to the next higher $10,000 and spouse coverage in $10,000 units).
2. Divide the insurance amount you selected by $10,000 to determine how many
“units” of insurance you’ll purchase. 3. Next, use the rate chart on this page to
determine your Monthly Cost of Insur- ance. Find your age and your spouse’s age, and enter the appropriate rate per
$10,000 shown on the rate chart.
4. Multiply by the number of units of insurance from Step 2.
Monthly Cost of Insurance Contribution to the Cash Accumulation Fund, if elected.
Dependent child(ren) coverage. Add to your or your spouse’s monthly contribu- tion, if elected.
Total Monthly Deduction for GUL =
+ +
+ Monthly Cost of Insurance rate per
$10,000 $10,000 rate per
Monthly Cost of Insurance Determine your total monthly deduction by adding the following:
Your Spouse
=
=
(Step 4) (Step 4) units units
+
= Insurance costs include a 2% charge to cover administrative fees and premium tax.
Rates are subject to change but will not exceed the guaranteed maximum cost of insurance shown in your certificate. If you terminate active employment, higher rates will apply.
$
$
=
SIGN UP NOW ... IT’S EASY!
You can enroll in Group Universal Life Insurance by com-
pleting and signing the application form included in this
kit and returning it in the envelope provided to County
of Fresno Benefits Department.
Note: You must enroll for GUL coverage within 31 days of your eligibility date to receive guaranteed amounts of coverage. After this period, you can enroll in GUL at any time, with evidence of insurability.
If you have any questions about enrolling, please call the CIGNA Customer Service Center at 1.800.828.3485 (1.800.336.2485 for the hearing impaired). Our knowledge- able service representatives are available to answer all your questions, Monday through Friday, 9:00 a.m. to 6:00 p.m., Eastern Time. After your coverage becomes effective, you can call the CIGNA Customer Service Center with any questions about your coverage or to make changes to your coverage or your contributions.
CIGNA Corporation, including Connecticut General Life Insurance Company and Life Insurance Company of North America.
The term “CIGNA” is used to refer to these subsidiaries and is a registered trademark.
CIGNA companies are leading providers of insurance, employee benefits, health care, investment management, and financial services to businesses and individuals worldwide.
This information is a brief description of the principal provisions of the insurance coverage. It is not a contract. Complete terms and conditions of coverage are set forth in Group Policy No. EUL-001149 on Policy Form No. TL-000983 for Group Universal
Life. The group policies are subject to the laws of the state in which they are issued.
Group Universal Life is underwritten by Life Insurance Company of North America.
Two Liberty Place 1601 Chestnut Street Philadelphia, PA 19192
Group Insurance
Life Accident Disability
County of Fresno Kit # 594035 (05/07) AR#0403-21289 (05/07)
