Life Insurance Reduction Schedule
Life insurance age reduction schedule mortgage for home security system.
Life insurance reduction schedule - An age reduction schedule applies after age 65 supplemental life insurance. Age reduction schedules are a product of the age discrimination in employment act adea. The life insurance age reduction schedule is a group term life insurance provision.
If you die the person you designate as the receiver of the benefits beneficiary will get a sum of money. From and after age 65 emplo. The actual amount varies based on how much you earn at the university.
Life insurance reduction schedule. Age reduction schedule a covered person s principal sum will be reduced to the percentage of his or her principal sum in effect on the date preceding the first reduction as shown below. If you elected this reduction schedule your basic life insurance reduces by two percent of the face value each month beginning with the second month after your 65th birthday or your retirement date whichever is later.
This reduction continues until your basic life insurance reaches 25 percent of the face value. As originally passed in 1967 adea had very little impact on basic group term life insurance as the law covered only employees aged 40 to 65. Your benefit is payable as a percentage of the amount otherwise payable as follows.
Life insurance protects your family from a loss of income in the event of your death. It s not unusual for an employee to first learn about this reduction at the age it first reduces. This coverage is fully paid by the university.
It has been any occurrence of or death in the long run should something unexpectedly happen to them and their capacity to pay. The basic life insurance plan provides 2x your annual base salary up to a maximum of 500 000. Employees who are in full time active status and who have attained the age of 65 shall have their life insurance benefit reduced by 35.
Re ductions in life insurance coverage were somewhat more. Beginning on and after your 70th birthday your life insurance benefit decreases. The preceding tables describe life insurance coverage be fore reductions are made due to age of the employee.
It reduces the face amount of your group life insurance when you reach certain ages like 65 or 70. Basic life insurance group universal life gul insurance supplemental accidental death and dismemberment ad d insurance for you and your dependents. Ac cording to the 1984 survey plans covering 54 percent or 10 9 million of life insurance participants reduced or dis continued life insurance for older workers table 1.
This group term life insurance is offered through the university to help protect your family s financial wellbeing.
