Benefit Standardization

  • Updated

To support consistent presentation and comparison of plans across carriers, values for the following benefits will be streamlined where applicable. Exact adjustments may vary based on carrier, product and plan source, and have been reviewed/approved by our carrier partners.

Basic Life

Benefit Carrier Example of Original Value Adjusted Value
AD&D Principal $X benefit Coverage for employees on and off the job. Coverage is not included for retirees. $X
Ex: $50,000
Accelerated Benefit Principal Terminally ill employees can receive up to X% of their life insurance benefit, up to $Y, if their life expectancy is 12 months or less (as diagnosed by a physician) and the death benefit is at least $Z. When an employee uses the accelerated benefit, the death benefit is reduced by the accelerated benefit payment. There are possible tax consequences to receiving an accelerated benefit payment and the employee should contact a tax advisor for details. Receipt of accelerated benefits could also affect eligibility for public assistance. Terminally ill employees can receive up to X% of their life insurance benefit, up to $Y

Ex: Terminally ill employees can receive up to 75% of their life insurance benefit, up to $250,000
Benefit Amount Principal $X benefit $X
EX: 200,000
Benefit Amount Principal 100% of annual salary to a maximum of $200,000 and a minimum of $10,000. Benefits are rounded to the next higher $1,000. 100% of your annual salary plus $1000, rounded to the next higher $1,000
Benefit Reduction Principal 35% reduction at age 65 and an additional 15% reduction at age 70 Upon retirement, benefits will reduce to 50% of the amount in force prior to age 65. Age reductions apply to the benefit amount after proof of good health.

X% reduction at age 65 and an additional Y% reduction at age 70

Ex:35% reduction at age 65 and an additional 15% reduction at age 70

Participation Requirement Principal • 100% participation for all non-contributory coverages.
• 50% participation for all contributory coverages.
5 standalone or 2 if multi-coverage
Portability Principal "-" NA
Rate Guarantee Principal two years, unless volume increases or decreases by more than 25% X years
EX: 2 years
Waiver of Premium Principal If an employee becomes totally disabled before age 60, coverage will continue and premium will be waived Total Disability; to age 65

 

Dental

Benefit Carrier Example of Original Value Adjusted Value
Major Waiting Period All No Waiting Period None
Major Waiting Period All NO WAIT None
Major Waiting Period All No None
Major Waiting Period All 12 mos 12 months
Major Waiting Period Metlife Benefits are payable immediately from the start date of an individual’s benefits None
OON Reimbursement All Based on Maximum Allowable Charge Standard schedule (for location of service rendered). MAC
OON Reimbursement All Xth R&C Xth Percentile
OON Reimbursement All Xth Percentile of Submitted Charges Xth Percentile
Ortho Coinsurance All If Orthodontia = "No Benefit","NA","N/A","Not Covered" Not covered
Ortho Lifetime Max All If Orthodontia = "No Benefit","NA","N/A","Not Covered" Not covered
Ortho Waiting Period All If Orthodontia = "No Benefit","NA","N/A","Not Covered" Not covered
Ortho Waiting Period Metlife Benefits are payable immediately from the start date of an individual’s benefits None
Participation Requirement Principal • If the employer contributes less than 50% of the employee cost for both plans, combined participation of 20% or 10 lives, whichever is greater, is required between choice offerings.
• If the employer contributes 50-99% of the employee cost for either choice plan, 50% combined employee participation is required between choice offerings.
• If the employer contributes 100% of the employee cost for either choice plan, 100% combined employee participation is required between choice offerings.
2 lives
Participation Requirement (Vol) Principal • If the employer contributes less than 50% of the employee cost for both plans, combined participation of 20% or 10 lives, whichever is greater, is required between choice offerings.
• If the employer contributes 50-99% of the employee cost for either choice plan, 50% combined employee participation is required between choice offerings.
• If the employer contributes 100% of the employee cost for either choice plan, 100% combined employee participation is required between choice offerings.
Greater of 5 enrolled or 20% participation
Rate Guarantee Principal two years or
"-"
X years (i.e. 2 years) or
if missing API value (1 year)
Rollover Account Limit Principal four times the carry over amount no more than four times the carry over amount
Rollover Amount Principal If qualification is met, 50% of the threshold will be carried over to next year's maximum benefit 50% of the threshold
Rollover Threshold Principal The threshold is equal to the lesser of 50% of the maximum benefit or $1000 lesser of 50% of the maximum benefit or $1000

 

LTD

Benefit Carrier Example of Original Value Adjusted Value
Definition of Disability Principal An employee will be considered disabled if, because of sickness, injury or pregnancy, during the elimination period and own occupation period, one of the following applies: • Unable to perform a majority of the substantial and material duties of his/her own occupation; OR • Unable to earn 80% of his/her indexed predisability income while working in his/her own occupation in a modified capacity or any occupation. An employee will be considered disabled if, after completing the elimination period and own occupation period, one of the following applies: • Unable to perform a majority of the substantial and material duties of any occupation for which he/she is or may reasonably become qualified based on education, training or experience; OR • Unable to earn 80% of his/her indexed predisability income while working in his/her own occupation or any occupation in a modified capacity.

Own occupation with residual, own occupation period=2 years

Earnings Definition Principal Base wage Compensation for business owners covers the net profits plus salary, averaged over the prior two calendar years. or
Base wage, including commissions and bonus Compensation for business owners covers the net profits plus salary, averaged over the prior two calendar years.
Base wage
Guaranteed Issue Principal "-" Yes
Max Benefit Duration Principal To Social Security normal retirement age or
To age 65 (reducing benefit duration)
To age 65
Mental & Nervous Principal 24 month benefit limit 24 months
Partial Benefit Principal "-" May be reduced by amounts the employee receives or is entitled to receive from deductible sources of income (offsets) and disability earnings.
Participation Requirement Principal "-" 5 standalone or 2 if multi-coverage
Rate Guarantee Principal two years X years
EX: 2 years

 

STD

Benefit Carrier Example of Original Value Adjusted Value
Covered Disability Principal No Non-occupational
Covered Disability Principal Yes 24 hour
Covered Weekly Benefit Unum Carrier file indicates Volume per $10 of weekly benefit Multiplied carrier file Volume by 10 to calculate Covered Weekly Benefit displayed in app
Definition of Disability Principal An employee will be considered disabled if, because of sickness, injury or pregnancy, one of the following applies: • Unable to perform a majority of the substantial and material duties of his/her own job; OR • Unable to earn 80% of his/her predisability income while working in his/her own job in a modified capacity or any job.

Own occupation with residual

Guaranteed Issue Principal "-" Yes
Participation Requirement Principal "-" 5 standalone or 2 if multi-coverage
Rate Guarantee Principal two years X years (i.e. 2 years)

 

Vision

Benefit Carrier Example of Original Value Adjusted Value
Contact Lenses Allowance Principal Up to $60 copay for standard and premium elective contact lens exams (fitting and evaluation) $150 allowance for elective contacts

$X allowance for elective contacts

EX: $150 allowance for elective contacts

Contact Lenses Frequency Principal 1 per X months Instead of lens and frames benefit Once every X months
Exams Frequency Principal 1 per X months One exam every X months
Frames Frequency Principal 1 set per X months One set every X months
Lenses Frequency Principal 1 pair per X months Two lenses (one pair) every X months
Participation Requirement Principal 50% employee participation assumed 5 standalone or 2 if multi-coverage
Participation Requirement (Vol) Principal 20% or 5 lives, whichever is greater Greater of 5 enrolled or 20% participation
Rate Guarantee Principal two years X years (i.e. 2 years)

 

Vol STD

Benefit Carrier Example of Original Value Adjusted Value
Participation Requirement Principal 20% or 5 lives, whichever is greater Greater of 5 enrolled or 20% participation
Rate Guarantee Principal two years X years (i.e. 2 years)

 

Vol LTD

Benefit Carrier Example of Original Value Adjusted Value
Participation Requirement Principal 20% or 5 lives, whichever is greater Greater of 5 enrolled or 20% participation
Rate Guarantee Principal two years X years (i.e. 2 years)

 

Vol Life

Benefit Carrier Example of Original Value Adjusted Value
Accelerated Benefit Principal Terminally ill employees can receive up to 75% of their life insurance benefit, up to $250,000, if their life expectancy is 12 months or less (as diagnosed by a physician) and the death benefit is at least $10,000. When an employee uses the accelerated benefit, the death benefit is reduced by the accelerated benefit payment. There are possible tax consequences to receiving an accelerated benefit payment and the employee should contact a tax advisor for details. Receipt of accelerated benefits could also affect eligibility for public assistance. EX: Terminally ill employees can receive up to 75% of their life insurance benefit, up to $250,000
Age Reduction Principal 35% reduction of benefits at age 65 and an additional 15% reduction at age 70 Age reductions apply to the benefit amount after proof of good health. EX: 35% reduction at age 70 with an additional 20% reduction at age 75
Benefit Amount Principal Employees choose to purchase benefits in $10,000 increments. Minimum amount: $10,000 Maximum amount: $300,000 EX: Select a benefit in increments of $10,000
Dependent AD&D Principal "-" Included
Not Included
Employee AD&D Principal Included. Benefit equal to the base voluntary term coverage. This is automatically included for employees electing voluntary term life insurance. Included
Not Included
Employee GI Principal Required for life insurance amounts greater than: Under age 70: $150,000 Age 70 and over: $10,000 Guaranteed coverage may be limited to the amount insured under the prior carrier based upon the method of enrollment. EX: If you're under 70: $150,000 If you're 70 or older: $10,000
Participation Requirement Principal 20% or 5 lives, whichever is greater. All eligible employees may enroll for coverage. Greater of 5 enrolled or 20% participation
Portability Principal Employees may continue coverage for themselves and any covered dependents until age 70 if the employee ceases to qualify as a member. The employee or spouse must enroll within 60 days from the date they cease to qualify as a member. Maximum age requirements apply. Portability is not available if: coverage is continued during disability / the employee has received accelerated benefits / individual purchase rights have been exercised / the employee dies / a dependent no longer meets the eligibility requirements. To age 70
Rate Guarantee Principal two years X years (i.e. 2 years)
Spouse AD&D Principal Included. Benefit equal to the base voluntary term coverage. This is automatically included for employees electing voluntary term life insurance. Included
Not Included
Spouse GI Principal Required for life insurance amounts greater than: Under age 70: $30,000 Age 70 and over: $10,000 Guaranteed coverage may be limited to the amount insured under the prior carrier based upon the method of enrollment. EX: If your spouse is under 70: $30,000 If your spouse is 70 or older: $10,000
Waiver of Premium Principal If an employee becomes totally disabled before age 60, coverage will continue and premium will be waived for the employee and any covered dependents Total Disability; to age 65

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