Increase, Accidental Death and Dismemberment (AD&D), Insured Total Disability Waiver of Premium, and Loss of Work.
Level Term Life (term insurance plus terminal illness is embedded)
CriticaLife (term insurance plus terminal illness and critical illness benefits are embedded) General information Issue ages:
• Individual: 10 year duration 18-70; 20year duration 18-60 • Spouse: 10 or 20 year duration 18-60
• Child: 14 days to 24 years
Both money purchase and defined benefit options are available
Coverage is effective on date selected by the employer for initial enrollment, or on the first premium due date for later enrollees
Underwriting: Guarantee Issue (GI); Contingent Guarantee Issue (CGI); and Simplified Issue (SI) Coverage termination date is the end of the grace period, for non-payment of premium; or on the date of the death of the insured
Premium payment methods
• Market to employer accounts with premiums paid through payroll deduction
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Base benefits ❯ Available to eligible employee, spouse and child(ren)
Employee coverage Minimum $10,000; maximum $300,000 (subject to Risk Management [RM] guidelines) Unisex/tobacco distinct rates
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Spouse coverage Minimum $10,000; maximum $50,000 (subject to RM guidelines) Unisex/tobacco distinct rates
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Child(ren) Minimum $5,000; maximum $2,500 (subject to RM guidelines) Unisex/uni-tobacco rates
All children are covered by one premium
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Terminal Illness benefit On employee, an acceleration of up to 50% of the face amount of the base certificate Physician certification of less than 12 months life expectancy
Limit of one per lifetime, once paid, the death benefit is reduced by the amount paid for the Terminal Illness benefit
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Work Life Resources
– online service Web portal which offers articles, links and videos for subjects such as personal, legal, financial, education, child, eldercare and caregiver resources
Toll-free telephonic grief counseling line 24/7
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FOR AGENT USE ONLY
GN-05623-WB 11/09
Group policy for voluntary level term life insurance renewable to age 80, available in term durations of 10 or 20 years.
Optional benefits include: Family Term Life Insurance, Accelerated Benefit for Critical Illness Benefit, Automatic Benefit Increase, Accidental Death and Dismemberment (AD&D), Insured Total Disability Waiver of Premium, and Loss of Work.
Level Term Life (term insurance plus terminal illness is embedded)
CriticaLife (term insurance plus terminal illness and critical illness benefits are embedded) Accelerated Benefit for
Critical Illness benefit (embedded in CriticaLife plan)
Accelerates 25%, 50% or 100% of the death benefit up to $100,000, selected by the employer at the time of application
Pays on eight triggers, listed below with coverage amount:
❯ Cancer 100% ❯ End stage renal failure or kidney transplant 100%
❯ Heart attack 100% ❯ Major organ transplant (except kidney transplant) 100%
❯ Stroke 100% ❯ Coronary artery bypass surgery 25%
❯ Occupational HIV 100% ❯ Carcinoma in situ 25%
For all critical illness accelerations, benefits are payable only once per trigger The amount payable is reduced by 25% at age 65 and another 25% at age 70
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Optional benefits Employer selected: Employee selected:
❯ Waiver of Premium ❯ Automatic Benefit Increase (ABI)
❯ Accidental Death & Dismemberment ❯ Family Term Benefit (spouse and child) and Loss of Sight (AD&D)
❯ Loss of Work
❯ Accelerated Benefit for Critical Illness Optional benefits
and definitions Waiver of Premium
Premiums waived after the employee has been totally disabled for at least 180 days or suffers a loss covered by AD&D
Once qualified for waiver, all premiums submitted after date of disability will be refunded to the employer
Available for sales to ages 18-55
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❯ Accidental Death &
Dismemberment and Loss of Sight (AD&D)
Available for sale through and including age 60 Coverage up to a maximum of $100,000 of AD&D
Additional benefit of 10% if seat belt was in use in automobile accident Coverage for coma, occupational assault, paralysis and more
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Loss of Work Provides waiver of premium to employees due to an authorized strike, lockout, layoff or job elimination
Available for sale through age 55
Elimination period is 30 days for benefit qualification
Maximum benefit period is six months per occurrence; lifetime benefit maximum of 12 months
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❯ Automatic Benefit
Increase (ABI) On policy anniversaries one through five, coverage increases equivalent to a $1 or $2 per week Premium may be elected by employer
Future ABI benefits cease if the certificate is ported
ABI benefit also increases critical illness and AD&D benefit on the life of the employee only Premiums are based on attained age of the employee on the date of the increase
If the employee refuses to exercise an increase, all future increases are cancelled
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Family Term (not available in South Carolina and in
Pennsylvania the proposed insured must be present)
Family Term coverage may be added after original policy issue date Family Term benefit terminates when base plan is terminated Family Term benefit is convertible
Spouse benefit
$10,000-$50,000 Child benefit
$5,000-$25,000
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❯ Sample monthly
premiums $50,000 face amount, 10 year term, non tobacco user
Level Term Life – no optional benefits CriticaLife – 25% CI acceleration
Age Premium Age Premium
25 $8.25 25 $13.25
35 $10.25 35 $21.25
45 $19.25 45 $38.75
Underwriting guidelines
Employee
Employees “actively at work” and working a minimum of 20 hours per week and who have met any service waiting period requirements mandated by the employer and/or Risk Management. Any exception requires prior approval from Risk Management.
Family Term benefit
Issue ages: 18-60 for 10 or 20 year term
Spouse coverage is only available if employee purchases policy Spouse coverage
Must meet definition of a spouse as determined by the laws of the employee’s resident state. If employed, the spouse must meet the definition of actively at work. If the spouse is not working due to illness or injury, he/she is not eligible until he/she returns to work. If not employed, a spouse must be able to perform normal activities of a person of the same age and gender. A disabled spouse is not eligible.
Dependent child(ren)
Must be a natural child of the employee, or a legally adopted child, or a child for whom adoption proceedings have started; or stepchild who lives with the employee, dependent grandchild, or a child for whom the employee has been appointed legal guardian
Issue ages: 14 days to 24 years
Child coverage is only available if employee purchases policy
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FOR AGENT USE ONLY
GN-05623-WB 11/09
Group policy for voluntary level term life insurance renewable to age 80, available in term durations of 10 or 20 years.
Optional benefits include: Family Term Life Insurance, Accelerated Benefit for Critical Illness Benefit, Automatic Benefit Increase, Accidental Death and Dismemberment (AD&D), Insured Total Disability Waiver of Premium, and Loss of Work.
Level Term Life (term insurance plus terminal illness is embedded)
CriticaLife (term insurance plus terminal illness and critical illness benefits are embedded) Underwriting guidelines
– enrollment form 1656, latest version, may be state specific. Complete the appropriate questions based on the underwriting offer.
There are two general questions which must be completed by all applicants regardless of the underwriting class.
A. How many hours per week do you work? (Located on page one in proposed insured section) B. Has any proposed insured used any form of tobacco in the last 12 months? (Located on page
two in Term Life Insurance section)
Guarantee Issue questions:
Q1. Are you currently actively at work?
Contingent Guarantee Issue questions (complete questions one to three):
Q2. Has any proposed insured ever been treated for or diagnosed by a member of the medical profession as having Acquired Immune Deficiency Syndrome (AIDS) or tested positive for Human Immunodeficiency Virus (HIV)?
Q3. In the past 12 months, has any proposed insured been disabled, hospitalized, treated in an emergency room, and if employed, missed five or more consecutive days of work due to an injury or illness other than cold, flu, back problem, strained/sprained/fractured/or broken limb, or maternity? (If “yes,” complete Simplified Issue Section of application.)
Simplified Issue Questions (complete questions one to seven):
Q4. In the past 5 years has any proposed insured been diagnosed, sought treatment, taken medication or been hospitalized for any of the following: heart attack/heart surgery/heart disease; emphysema/lung disease; high blood pressure reading of 140/90 or above; liver disease/
hepatitis/cirrhosis; stroke/transient ischemic attack (TIA); neurological disorder/multiple sclerosis;
cancer (except basal cell skin cancer); lupus; end stage renal/kidney disease; blood disorder;
diabetes (insulin dependent); epilepsy; alcohol and or drug abuse?
Q5. Has any proposed insured been advised by a member of the medical profession to have any diagnostic test, hospitalization, or surgery that has not been completed within the past three years?
Q6. Had a parent, brother or sister with a history of heart attack, heart disease, stroke or cancer diagnosis prior to age 60?
Q7. Complete appropriate height/weight per proposed insured.
Product restrictions Total amount of life insurance coverage with Kanawha Insurance Company not to exceed
$300,000 (excludes GTL)
If both parents are eligible employees, their eligible child(ren) may be insured by either spouse but not both
The employer determines if the offer is money purchase or defined benefit
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Employer eligibility Available only through payroll deduction. Minimum size is five participants.
Rates Unisex
Tobacco distinct rates for employee and spouse Age specific rates apply
Entry age Policy fee: $27
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❯ Waiting periods for
critical illness triggers ❯ Cancer and carcinoma in situ have a 30-day waiting period.
Convertability The policy can be converted without evidence of insurability as long as the certificate is in full force and the employee is less than 65 years old.
Policy will be converted to the Secure Life conversion plan Spouse coverage can be converted before the 65th birthday Child coverage can be converted before the 26th birthday
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Portability Coverage is portable assuming the following parameters are met:
• Employee is less than 70 and the policy has been in force for at least six months • Master policy issued to the employer is active
• Dependents on ported certificates terminate when the spouse attained age is 70 or the child attained age is 25
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Master application/
enrollment form The master application is 1380 and the enrollment form is 1656. Please use the latest version, may be state specific.
Claim form 5624
Selling points
of CriticaLife Level Term Life focuses on the strong base at competitive rates, no frills, but basics of Waiver of Premium, AD&D, ABI, and family coverage can be added
CriticaLife embeds the critical illness benefit into the plan
Critical Illness has eight triggers, not just the “big three” many competitors have in their portfolio ABI benefit is similar to Secure Life, offers $1 or $2 per week at first five anniversaries
Work Life (EAP) web tools available with the policy at no extra cost
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❯ Positioning points
of CriticaLife This design works well for cases which are price sensitive because the base is competitive and for those who want more, the optional benefits are powerful
CriticaLife allows employee to use the critical illness trigger then the terminal illness trigger in one plan design
Family coverage available without evidence of insurability
Embedded benefit for terminal Illness which accelerates death benefit up to 50% make this more than a term life policy
Occupational HIV critical illness trigger is a great selling point for hospitals, police and fire
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