Accelerated Death Benefit
If, while covered under the group life insurance plan, a participant
becomes terminally ill, he or she may apply to Aetna for an Accelerated
Death Benefit (ADB). Upon Aetna's approval of such a request, Aetna
will pay the amount of the ADB, subject to the following terms.
To be considered terminally ill, the applicant must:
(a) Be diagnosed as suffering from an incurable, progressive, and
medically recognized disease or condition;
(b) To a reasonable medical probability and on the basis of generally
accepted medical protocols, have a life expectancy of no more than
12 months beyond the date of the application for an ADB.
Aetna cannot furnish legal or tax advice to the applicant or to
the Organization. Legal counsel and/or a tax adviser should be consulted
before a request for an ADB is made.
An ADB may be requested at any time by completing an Aetna Request-For-Accelerated-Death-Benefit
and submitting it to Aetna. The request must include the statement
of a currently licensed physician certifying the terminal illness.
The physician's statement must include:
(a) All medical test results;
(b) Laboratory reports;
(c) Any other information on which the statement is based, including
the generally accepted prognostic protocol used by the physician
to determine the expected remaining life span.
The ADB benefit is available to all group life insurance participants
(active staff, retirees and those separated for medical reasons).
The calculation of the ADB benefit will be based on 50 per cent
of the amount of life insurance in force on the date of application,
subject to the following provisions:
(a) The request for an ADB must state the amount of the benefit
requested. The minimum amount that may be requested is $5,000;
(b) The amount of ADB payable will be reduced by an interest charge
equal to the sum of the daily interest that would have accrued on
such amount during the 12-month ADB period. The rate used to calculate
the interest charge will not exceed the current yield on 90-day
United States Treasury bills as of the date the ADB payment is issued;
(c) If, during the 12-month ADB period following the date of application
for an ADB, the amount of life insurance will be reduced owing to
the attainment of a specified age or retirement, the ADB amount
will be based on 50 per cent of the amount of life insurance that
would remain in effect after any reduction, subject to a minimum
(d) When an ADB has been approved, the amount of life insurance
remaining in force will be reduced by the amount of ADB that would
have been payable in the absence of any interest charge;
(e) If the amount of life insurance remaining has been so reduced,
there will be no entitlement to convert the amount of life insurance
that ceases as a result of the ADB payment;
(f) In considering a request for an ADB, Aetna may require the participant
to submit, at Aetna's expense, to an independent medical examination
initiated by a physician chosen by Aetna. Review of a request for
an ADB will be suspended until the examination has been completed
and the results submitted to Aetna;
(g) If, by assignment or otherwise, someone other than the insured
is the owner of the life insurance coverage, an ADB will not be
available under this plan;
(h) An ADB may be requested only once under this plan;
(i) Upon approval by Aetna, the amount of the ADB will be paid in
a lump sum.
To the extent allowed by law:
(a) An ADB payment is exempt from any legal or equitable process
for the debts of the insured;
(b) There can be no requirement to request an ADB in order to satisfy
claims of creditors.