Group Life & Accidental Death & Dismemberment (AD&D) Insurance – UNUM
Carleton auto enrolls employees in group term life and AD&D insurance and pays for the premium. Coverage is 3.5 times your annual earnings up to a maximum of $500,000. Coverage is rounded to the next $1,000.
The premium is considered taxable income for coverage amounts above $50,000 and will be added to the W-2 as imputed income. Employees can choose to limit their coverage to $50,000.
Coverage is reduced by age starting at age 65.
Voluntary Life and AD&D Insurance – UNUM
Carleton offers employees the option to elect voluntary life and AD&D insurance. This plan is intended to supplement the Group Life and AD&D insurance. Employees are responsible for paying the premium.
Employees in their initial eligibility period are eligible to elect life insurance coverage up to the guaranteed issue (GI) amount. The GI amount is not subject to the evidence of insurability underwriting. The GI and maximum coverage amounts are as follows:
- Employee GI: $250,000. Employees can elect coverage in $10,000 increments up to a maximum of $750,000 – not to exceed 10x their salary.
- Spouse/Domestic Partner GI: $40,000. Maximum benefit is $250,000 and is not to exceed 50% of the employee’s benefit. Coverage can be elected in $5,000 increments.
- Child(ren) birth to age 26 GI: $5,000 or $10,000 coverage amount. Evidence of insurability is not required.
Evidence of insurability will need to be completed when an employee elects coverage above the GI amounts or if they previously had a denied application.
Long-Term Disability (LTD) Insurance – UNUM
Carleton offers a Voluntary LTD plan. If the employee chooses to elect the benefit, the premium is shared equally between the employee and Carleton (50/50). LTD provides income protection up to 60% of the employee’s annual earnings with a maximum benefit up to $10,000 per month following a 90-day waiting period.
Per the LTD insurance policy, an employee is disabled when, due to the same injury or illness when they are unable to:
- perform the material duties of their regular occupation,
- earn more than 80% of their indexed monthly earnings; and
- perform the material duties of any occupation for which they are reasonably qualified for based on education, training or experience. After disability benefits have been paid for 24 months.
Employees who elect this benefit in their initial benefit eligibility period will not be required to complete the evidence of insurability. This benefit coordinates with benefits from other sources such as Social Security when needed.
Disability coverage and payment is subject to age reduction starting at age 60, see the schedule below:
LTD Age Reduction Schedule
| Age at time of Disability | Duration of LTD Payments |
|---|---|
| Prior to age 60 | Up to age 65 |
| 60-64 | Up to 5 years |
| 65-68 | Up to age 70 |
| 69 and older | Up to 1 year |