Life Insurance


Life Insurance

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 of $5,000;
(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.

Additional provisions

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.