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FLEXIBLE BENEFITS

2009
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LIFE INSURANCES
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LIFE INSURANCES
QUESTIONS TO CONSIDER

• How many people depend on you for support?
• Do you have a mortgage to pay off?
• Do you have other debts to pay (e.g. car payment,
  bank loan, or credit cards)?
• How much will you pay for your childrens
  education?
• Are your current assets adequate to cover these
  expenses?

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LIFE INSURANCES
EMPLOYEE GROUP TERM LIFE

• Coverage Available
• 1x, Benefit Salary (capped at 300,000)
• 2x,3x,4x,5x,6x,7x, 8x, or 9x Benefit Salary- max
  500,000
• Enhanced Accelerated Death Benefit lump sum up
  to 100 of life insurance if given 12 months or
  less to live
• Total Disability - Waiver of Premium
• Total Disability - One Year Continuance

• Premiums - Pre-tax
• Based on Selected Coverage, Benefit Salary
  Benefit Age
• Imputed Income - Coverage over 50,000

No Cash Value
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LIFE INSURANCES
IMPUTED INCOME

• Coverage over 50,000 may be paid with pre-tax or
  after tax dollars
• The extra value of coverage will be shown as
  imputed income on the W2 statement FICA taxes
  will be paid on imputed income
• Extra taxes owed will be minimal and tax savings
  using pre-tax premiums will be greater than any
  imputed income taxes unless you earn over
  100,000 and are over age 65

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LIFE INSURANCES
EMPLOYEE GROUP TERM LIFE

• Coverage will be based on Benefit Salary
• Amount is rounded up to the next higher 1,000
• Age 65 or older, the value of the coverage is
  reduced

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LIFE INSURANCES
SPOUSE LIFE OPTION

• Coverage Amounts
• - 6,000 - 60,000 - 200,000
• - 12,000 - 100,000 - 250,000
• 30,000 - 150,000
• Coverage cannot exceed value of Employee Life
  Coverage

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LIFE INSURANCES
SPOUSE LIFE OPTION

• Subject to Age Discrimination in Employee Act/Age
  Reduction (ADEA)
• Rate Structure Based on Employees Age
• Must have Employee Life in order to select Spouse
  Life

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LIFE INSURANCES
CHILD LIFE OPTION

• Coverage Amounts
• - 3,000 - 15,000
• - 6,000 - 20,000
• 10,000
• Coverage cannot exceed value of Employee Life
  Coverage
• Coverage from live birth to age six months is the
  lesser of elected coverage or 6,000

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LIFE INSURANCES
CHILD LIFE OPTION

• Flat Rate Structure for each level of coverage
• - 0.21 - 1.05
• 0.42 - 1.40
• 0.70
• Must have Employee Life in order to select Child
  Life

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LIFE INSURANCES
MEDICAL UNDERWRITING
New Employees Enrolling For the First Time New Employees Enrolling For the First Time
EMPLOYEE LIFE Life Medical Underwriting Requirements
Enrolling in 1 times pay (capped at 300,000) NONE
Enrolling in 2, 3, 4, 5, 6, 7, 8, or 9 times pay Coverage over 200,000 Minnesota Life Evidence of Insurability online form and Amplified Blood Test required
SPOUSE LIFE Life Medical Underwriting Requirements
Enrolling in coverage 30,000 or less NONE
Enrolling in coverage over 30,000 Minnesota Life Evidence of Insurability online form required. Amplified Blood Test required for coverage 150,000 or greater
CHILD LIFE Life Medical Underwriting Requirements
Enrolling for the first time in any level NONE
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LIFE INSURANCES
MEDICAL UNDERWRITING CURRENT EMPLOYEES

• Current employees may change coverage levels due
  to a Qualifying Event
• Increases in coverage levels will require Medical
  Underwriting

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LIFE INSURANCES
MEDICAL UNDERWRITING KEY POINTS TO REMEMBER

• Employees selecting coverage, requiring Medical
  Underwriting, will receive the Guaranteed level
  of coverage initially

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LIFE INSURANCES
MEDICAL UNDERWRITING KEY POINTS TO REMEMBER

• Employees, whose Requested level of coverage is
  approved
• Coverage and Premium will change the first of the
  month after the date of vendors approval
• Reduces the need for refund of premiums

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LIFE INSURANCES
TRAVEL ASSISTANCE

• Provided by Minnesota Life through Europ
  Assistance USA (EA)
• No additional premium cost to employee or
  eligible dependents
• Use for travel for business or pleasure more than
  100 miles from home

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LIFE INSURANCES
KEY SERVICES PROVIDED THROUGH TRAVEL ASSISTANCE

• Locating and monitoring medical services (e.g.
  physicians, dentists, treatment facilities)
• Medical evacuation to the nearest hospital,
  treatment facility, or returned home for
  treatment
• Locating lost or stolen items (e.g. luggage,
  documents, wallet)

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LIFE INSURANCES
KEY SERVICES PROVIDED THROUGH TRAVEL ASSISTANCE

• Replacement of prescription that has been lost,
  stolen, or requires a refill, subject to local
  law
• Insured responsible for cost of refill shipping
• Return of mortal remains and payment for all
  necessary government authorization for return to
  place of residence for burial

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LIFE INSURANCES
CLAIM FORMS
Located in the Forms section on Team Georgia
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BENEFIT OPTIONS AFTER RETIREMENT
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LIFE INSURANCES
EMPLOYEE/ SPOUSE/ CHILD LIFE

• Conversion
• Whole Life Insurance
• Converted amount cannot exceed the Flex coverage
  amount
• Spouse and/or Child coverage cannot exceed
  Employees coverage

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LIFE INSURANCES
EMPLOYEE/ SPOUSE/ CHILD LIFE

• Conversion
• No Medical Underwriting required if maintaining
  current coverage or decreasing coverage
• Pay the same converted level premium
• Must be elected within 30 days of retirement date
• Contact Atlanta Branch office for form
  [phone]

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LIFE INSURANCES
EMPLOYEE/ SPOUSE/ CHILD LIFE

• Portability
• Continuation of Group Term Life
• Premiums increase with age in 5 year increments
• Not eligible if leaving due to a sickness and/or
  an injury

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LIFE INSURANCES
EMPLOYEE/ SPOUSE/ CHILD LIFE

• Portability
• Employees coverage reduces at age 65 (ADEA)
  (Spouses reduces at the same time)
• Coverage may be converted at any time
• Can avoid coverage loss due to age reduction if
  converted within 30 days of age reduction event

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LIFE INSURANCES
PORTABILITY AGE REDUCTION
AGE OF COVERAGE
65 but less than 70 65
70 but less than 75 43
75 but less than 80 29
80 but less than 85 19
85 but less than 90 13
90 but less than 95 9
95 but less than 100 5
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LIFE INSURANCES
EMPLOYEE/ SPOUSE/ CHILD LIFE

• Portability
• Must be elected within 30 days of retirement date
• Contact Atlanta branch office for form
  [phone]

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LIFE INSURANCES
SPA CONTACT INFORMATION

• Agencys website www.spa.ga.gov
• Information Regarding Flexible Benefits
  http//team.georgia.gov/portal/site/FLEX
• Phone Numbers
• Local 404-656-2730
• Toll Free 1-888-968-0490

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