No benefits package is complete without life insurance. Your clients count on you to recommend the best options for a comprehensive benefits package. Blue Shield of California Life & Health Insurance Company (Blue Shield Life) can help you meet their life insurance needs, with competitive prices and a wide array of options for groups of any size. By combining life insurance and health coverage, your clients can enjoy the convenience of a single point of contact for billing and customer support, leaving them more time to focus on their business.
Blue Shield of California Life & Health Insurance Company
Group term life insurance
Products, eligibility, and guidelines
Effective January 1, 2008
blueshieldca.com
Why should your clients consider Blue Shield Life for their life insurance needs? Here are just some of the advantages:
Doing what we do best
For more than 50 years, Blue Shield Life has fulfilled the life insurance needs of businesses across California. Life insurance provides vital financial benefits in the event of a tragic loss.
Financial strength
In 2007, A.M. Best gave Blue Shield of California Life & Health Insurance Company an “A-”, which is an “excellent” rating. We have the financial strength to meet your insurance needs.
Getting value for the money
We offer group coverage at affordable prices combined with effective customer service.
Ease of administration
By combining life insurance with health coverage, your clients can enjoy the convenience of one combined bill. With only one point of contact for your clients’ health coverage and life insurance needs, there’s more time for them to focus on their business.
Customer satisfaction
We have a knowledgeable and helpful staff that is dedicated to serving your needs and your clients’ needs. We’re rated highly for our customer service, and we’re committed to upholding our high standards.
Group life and AD&D insurance product
Group term life and AD&D insurance is an integral part of a complete benefits package. We offer group term life insurance to groups whether or not they have health coverage.
Plan design
Life, our life insurance product, offers a comprehensive set of benefits in the following plan designs: • Flat amount – All employees are covered at the same flat amount, e.g., $25,000.
• Multiple of salary – All employees are covered for the same multiple of salary up to a maximum amount, e.g., two times annual earnings up to the maximum benefit amount, depending on group size. Reference the chart below for maximum benefit amounts.
• Graded schedule – Employees are divided into classes (up to four) that have different levels of benefits. The benefit amount for each class must be no more than 2.5 times that of the next lower class.
Group term life and AD&D insurance guidelines
Eligible employees Sold with or without medical2-91 • Minimum benefit $15,000
• Maximum benefit $30,000
• No evidence of insurability required
10-24 • Minimum benefit $15,000
• Maximum benefit $50,000
• No evidence of insurability required
25-50 • Minimum benefit $15,000
• Maximum benefit $100,000
• No evidence of insurability required
51+ • Minimum benefit $15,000
• Maximum benefit is determined at the discretion of Blue Shield Life Underwriting • Guaranteed issue amounts are set depending on overall group volume and
basic benefit levels. Evidence of insurability required for amounts in excess of guaranteed issue.
Life
Available to groups with two1 or more eligible employees, whether or not they purchase health coverage. All employees within the group are eligible for life insurance under our Life product, even if the group has multiple health carriers.
Our Life product is designed to meet the needs of most employer groups. With the Life product, your clients will enjoy the convenience of having a single source of contact for health coverage and life insurance needs, including account management, billing, and customer support, all from Blue Shield of California.
The Life product includes both group term life and AD&D insurance. Dependent life insurance is optional.
• Accelerated Death Benefit (ADB) allows advanced payment of death benefits in situations where the insured employee is terminally ill. Individuals may elect to withdraw an ADB benefit in $1,000 increments, subject to the following minimums and maximums. – Maximum allowed is 50% of benefit or $75,000,
whichever is lower.
– Minimum allowed is 10% of benefit or $5,000, whichever is greater.
– Minimum of $15,000 in coverage is required to receive ADB.
• Waiver of premium provision allows for continuation of life insurance coverage without payment of premium if the insured employee is totally disabled prior to age 60. • Beneficiaries are designated by the insured employee.
Accidental death and dismemberment (AD&D) insurance benefits
• Full benefit is provided for accidental loss of life. • Partial benefits are paid for accidental losses in
accor-dance with the schedule listed on the following column. • Full benefit equals the Life amount. Benefits for all
losses resulting from the same accident may not exceed the full benefit.
• The following are also included as AD&D insurance features:2
– Seat belt benefit
– Special education benefit – Repatriation benefit – Disappearance benefit – Felonious assault benefit – Exposure benefit – Common carrier benefit – Surgical reattachment benefit
Dependent life insurance (optional)
• Life insurance is provided for an insured employee’s spouse, domestic partner, and/or children.
• Group term life insurance must be purchased before dependent life insurance is available.
• Coverage is offered at $1,000 to $5,000 per dependent. Coverage amounts for spouse/domestic partner and children must be equal and cannot exceed 50% of the employee’s benefit. One rate covers all dependents. This is only a summary of benefits, not a policy. The actual complete terms and conditions are set forth in the policy.
2 For groups of 10 or more eligible employees.
Accidental loss Percent of benefit
Loss of limbs above wrist or ankle 50% Loss of sight in one eye 50% Loss of thumb and index finger of one hand
25%
Loss of all four fingers of one hand 25% Loss of all toes of one foot 12.5%
Programs that help you sell ancillary products
For groups of 51 to 299 eligible employees
Take advantage of these tools that will match your client’s current rates, or provide them with savings3 on their health plan when they also sign up for other ancillary products.Quick Match Program
The Quick Match ProgramSM is a great way to get in the door with employers who don’t currently purchase life insurance coverage from Blue Shield Life. If a group qualifies, we may be able to match the group’s renewal life and AD&D insurance rates. Please contact your Blue Shield sales representative to find out if your clients qualify for the Quick Match Program.
Benefit Solutions
Benefit Solutions can save money for your clients when they combine medical and ancillary coverage. Available to your new and existing groups with 51 to 299 eligible employees, Benefit Solutions features:
• Savings of up to 3% on medical rates3
• Rate guarantees on dental,4 life insurance, and vision4 plans for up to three years
• Three suites of bundled health and ancillary offerings • Options to help your clients stay within projected budgets • Simplified benefits administration – with one source of contact
Here’s how Benefit Solutions works:
Qualifying purchase Suite 1 Suite 2 Suite 3
When your client with 51 to 299 eligible employees purchases or renews a Blue Shield health plan and adds ancillary products in one of these combinations5…
Vision, dental,
or life insurance A combination of any of the two: Vision, dental, or life insurance
All three: Vision, dental, and life insurance Your client will receive a first-year medical rate savings6 of … 1% 2% 3%
With a rate guarantee of … 1 year on
ancillary product 2 years on both ancillary products 3 years on all three ancillary products
Benefit Solutions is available to all new and existing health clients with 51 to 299 eligible employees who purchase new Blue Shield ancillary products. Rate savings as a part of the Benefit Solutions program only apply to medical rates. No savings apply to any riders, including but not limited to prescription drugs, inpatient psychiatric, chiropractic, acupuncture, or infertility. Rate savings and rate guarantees don’t apply to clients with existing ancillary products that do not purchase new ancillary products. For example, if an existing group already offers its employees a Blue Shield dental plan, the group must add another ancillary product to receive a medical rate savings of 1%. If your client renews the dental coverage, and adds two new ancillary products, your client receives a 2% medical rate savings. Rate savings are subject to change at Blue Shield’s discretion.
3 Savings on health plans can be passed along due to increased Blue Shield efficiencies resulting from administering both health and ancillary plans on a group’s behalf.
4 Dental and Vision Basic plans are underwritten by Blue Shield of California.
5 Voluntary dental and vision plans are excluded from earning medical rate savings and ancillary rate guarantees.
6 The medical rate savings is available during the first contract year. Thereafter, the medical rate is subject to change upon renewal.
For more information on Benefit Solutions, contact your Blue Shield sales representative or visit
Producer resources
Ordering applications and forms
It’s fast and online: Download all applications, brochures,
and claims forms from Producer Connection on blueshieldca.com.
Or, clients can also access frequently used forms directly from Employer Connection on blueshieldca.com.
Submitting quote requests
Two quick things to consider before sending your quotes: If your client is considering health coverage from Blue Shield, simply request a life insurance quote along with the health quote.
Or, if your client is purchasing life insurance separately from health coverage, or if you’re not sure how to apply for life insurance along with health, call Blue Shield Life Customer Service representatives at (888) 800-2742.
How to get a quote
It’s easy, just call and give us the following information, and we’ll get you a quote within two to four business days. For groups with 51 or more employees, please contact your sales representative to request a quote. • Name and location of the group
• Standard Industry Code category for the group (if known) or a description of the nature of business • Requested effective date
• Date you need a quote
• Description of the plan design and benefits desired • Employee contribution level, if any
• Group census containing gender and age or date of birth
• Salary information and/or class designations (for salary or graded plans)
• Rate history for last two policy years for groups of 51+ Note: For groups with 500 or more employees, include the most recent 24 months of premium, claims, enrollment, and rate history.
Underwriting guidelines
Group life and AD&D insurance
• Benefit amount is reduced by 35% at age 65, and by 50% of the original amount at age 70. Benefits terminate at retirement.
• Coverage cannot exceed five times the annual earnings.
• Minimum employer contribution is 25% of premium. • If employer pays 100%, participation must be 100%. • If employer contributes less than 100%, participation
must be 75% or greater.
Ineligible groups
Employers in the following industries or activities listed below present high risk and are not acceptable for a group life insurance policy. Please note, the list below is based on a summary of Standard Industrial Classification (SIC) codes. To obtain the full SIC codes and their descriptions, please visit the Environmental, Health and Safety Web site at www.ehso.com/siccodes.php. 1. Groups that conform to laws outside the area in
which the group policy would be issued.
2. Fraternal organizations (i.e. clubs, lodges, veteran organizations)
3. Groups that cannot or will not assume the necessary administrative functions required of a group policyholder 4. Corporations in bankruptcy
5. Transportation by air (includes all air transportation and services)
6. Drinking establishments (including bars, cocktail lounges, dance halls, or taverns)
7. Chemical and allied products and biological product diagnosis (Chemical processing, except medicinal and botanical, pharmaceutical preparation, biological products, soap and other detergents, polishes and sanitation goods, surface agents, and toilet preparation)
8. Commercial fishing, hunting, and trapping 9. Commercial diving and salvage
10. Amusement and recreational (includes dance studios, entertainers, racing and track operations, sports teams, etc.
11. Counseling and rehabilitation centers 12. Explosives
13. Wrecking and demolition 14. Small arms ammunition
15. Ammunition, except for small arms
16. Water transportation (includes all water transportation and services)
17. Logging operations
18. Marinas, ski resorts, and other seasonal businesses 19. Mining (metal, coal, oil and gas extraction, and
non-metallic minerals except fuels)
20. Petroleum and coal products (includes petroleum refining)
21. Power plants 22. Private households 23. Roofing
24. Taxi cab (taxi companies) 25. Window washers
26. Crop dusting 27. Asbestos products
28. Local transportation: Ambulances
29. Non-classifiable establishments: Adult-only
Groups requiring special consideration include (Contact Blue Shield Life Underwriting):
1. Religious groups 2. Public employees
3. Groups with eligible employees outside the United States 4. Seasonal employees
5. Unions, associations, and multiple employer trusts 6. Groups with no employer-employee relationship Blue Shield Life Underwriting reserves the right to make final decisions regarding the insurability of any group. To obtain the full underwriting guidelines, please visit Producer Connection at blueshieldca.com.
Contact us
Producer Connectionblueshieldca.com/producer
Producer Services Phone: (800) 559-5905
Blue Shield Life Customer Service Toll-Free: (888) 800-2742 Fax: (800) 329-2742 E-mail: sales@bscalife.com A n In d e p e n d e n t Li c e n se e o f t h e B lu e S h ie ld A ss o c ia tio n A BU 14 95 6 (1 1/ 07 )
