Accidental Death and Dismemberment Benefits The group term life insurance coverage provides an accidental death and dismemberment and loss of use (AD&D) benefit to covered employees at no additional cost. The amount of the AD&D benefit is based on the employee’s term life insurance amount, and varies depending upon the specific loss. Refer to the Your Group Plan booklet for a complete schedule of AD&D benefits.
AD&D benefits may be paid for losses due to an accidental bodily injury while insured. In other words, AD&D benefits are generally available when death or a covered bodily injury is the direct result of an accident and independent of all other causes.
AD&D coverage is provided to an employee so long as he maintains his term life insurance coverage. A participating totally disabled employee has AD&D coverage only for the first 12 months of his term life insurance coverage period. Retirees are not eligible for AD&D coverage whatsoever.
Retiring Employees A retiring employee must have participated in the life insurance coverage as an active employee to continue coverage as a retiree. A retiring employee may continue term life insurance coverage in the amount of $5,000, $10,000, or $20,000. The retiring employee should apply as soon as possible but must elect coverage no later than 31 days after losing coverage as an employee and make the appropriate contributions to continue coverage. This will be the retiring employee’s only opportunity to continue coverage, as late retiree applications will not be accepted. To ensure coverage is continued, the retiring employee should apply at least 31 days prior to retirement. Employees should contact their personnel office for forms and application instructions.
Cost of Coverage for Retired Employees A retiree must pay the full premium cost for his coverage. Similar to retiree health insurance coverage provisions, the premiums for term life insurance must be deducted from the retiree’s monthly Public Employees Retirement System (PERS) retirement benefit if the benefit amount is sufficient. Otherwise, the retiree will be billed the appropriate premium amount each month. The premium cost is actuarially determined and will vary based on the retiree’s age and the benefit level selected.
Totally Disabled Employees If a covered employee becomes totally disabled, he may be eligible to retain the same amount of term life insurance coverage he has as an active employee. To apply for continuation of coverage, the employee must complete a life insurance Enrollment/Change Request Form, a Group Disability claim form, and have his doctor complete an Attending Physician’s Statement. Forms are available from the employees’ personnel office, or can be downloaded from the Know Your Benefits website. The employee should submit all three forms to his personnel office, which is responsible for providing additional information on the forms before sending them to the Mississippi Department of Finance and Administration’s Office of Insurance. The Office of Insurance will likewise provide additional information and forward these documents to Aetna Life