Module 2 Flashcards
benefits paid for death or dismemberment as a
result of an accident
Accidental death & dismemberment benefit
Coverage on and off the job
24‐hour coverage
Coverage excludes workplace accidents
Nonoccupational coverage
Death resulting from an accident and was
unintended and unexpected
Accidental death
Outline of the amount payable for each specific
type of loss
Table of losses
For AD&D, the benefit amount payable when a
plan member’s death results from accident
Principal sum
Benefit in addition to those paid for loss of life or
dismemberment like repatriation & rehabilitation
Ancillary (Optional) AD&D benefits
Plan member’s spouse, parent, grandparent,
child over 18, or sibling
immediate family member
The limit applied to the combination of basic
and voluntary amounts of coverage
Combined maximum
Limits the amount payable when numerous plan
members are involved in the same accident
Aggregate limit
Naming of the beneficiary that will receive the death benefit
Beneficiary designation
A payout to cover final expenses
Facility of payment provision
Lump sum, on deposit with interest, or installment payments
Benefit settlement method
Cashing in a portion of the value of life insurance
when the insured is diagnosed with a terminal
illness and death is imminent
Living benefits
Coverage continues for a disabled plan member
without the payment of premiums
Waiver‐of‐premium provision
Contract can be terminated if premiums are not
paid within the grace period, or with adequate
written notice
Termination provision
Upon termination of coverage, ability to convert
group life to an individual policy without medical
evidence
Conversion option
A provision that prevents the insurer from
voiding coverage due to a misstatement by the
sponsor or insured after a specific amount of
time has passed.
Incontestability
Provisions to address when an insured has
understated or overstate their age
Misstatement of age provision
If a beneficiary is found to have murdered the
insured, proceeds will be payable to the estate
and not the beneficiary
Criminal act exclusion
Paying regular group life premiums each year
until a retiree’s death
Current cost funding
A lump sum payment to an insurer to transfer the
liability of the retiree’s death
Single premium paid‐up funding
Paying for the cost of retiree life insurance over a
specific period of time (eg. 5 ‐10 years)
Installment funding
Lump sum payment to an insured that has been
diagnosed with a covered life‐threatening illness
and survived for a specific period
Critical illness insurance benefits
