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| LIFE INSURANCE |
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| Basic
Life Insurance |
Valassis automatically provides full-time associates (scheduled to
work 37.5 or more hours a week) with basic life insurance coverage equal
to 1.5 times your annual pay on the date you become covered under the
plan (rounded to the next higher $1,000) up to $500,000. The full amount
of your basic life insurance is paid to your beneficiary (ies) when
you die. Part-time associates (scheduled to work 20 to 37.4 hours a
week) are provided $25,000 in coverage.
Definition of Annual Pay
For purposes of this plan, annual pay is defined as your regular compensation
for normal scheduled workdays, including paid holidays and vacations.
It does not include bonuses, overtime and/or other extra compensation.
If your base pay changes, the amount of your basic life insurance will
also change. Annual pay for sales associates is defined as your base
pay plus commissions and/or sales bonuses received during the prior
two full calendar years. Auto allowance is excluded.
Accelerated Payment Benefit
A portion of your Basic and Voluntary Life Insurance coverage amount
may be payable before death, if your life expectancy is twelve months
or less, your policy is for at least $10,000 and you are under the age
of 60. You may request a minimum benefit amount of $3,000 and a maximum
of $500,000, to not exceed 80% of the terminally ill person's amount
of life insurance. This option can be exercised only once for you and
only once for each of your dependents.
This provision allows a terminally ill patient to use life insurance
benefits to pay for medical and other expenses. This accelerated benefit
is payable to you (or your beneficiary) in a lump sum once in your lifetime
and may be subject to income taxes; check with your tax advisor for
details. Upon your death, the amount of your Basic and Voluntary Life
Insurance benefit will be reduced by the amount of any accelerated benefit
that has been paid.
You must apply in writing to request an accelerated benefit. Your request
must be accompanied by a physician’s certification that you are
terminally ill with a life expectancy of twelve months or less (the
insurance company may require an independent exam).
In the event you are required by law to accelerate benefits to meet
the claims of creditors or if a government agency requires you to apply
for benefits to qualify for a government benefit or entitlement you
will still be required to satisfy all the terms and conditions herein
in order to receive an accelerated benefit.
Note: Receipt of accelerated life
insurance benefits may affect you, your spouse’s or family’s
eligibility for public assistance programs, such as Medicaid, supplementary
Social Security income or prescription drug assistance programs.
Reduction of Basic and Voluntary Life and AD&D
Insurance Coverage
At age 70, your basic and voluntary life and AD&D insurance coverage
will be reduced to 65% of the amount in effect on the day before your
70th birthday. At age 75, coverage will be reduced to 50% of the amount
in effect on the day before your 75th birthday.
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