Term Life and Accidental Death and Dismemberment Plan

The Term Life and Accidental Death and Dismemberment Plan is a low-cost way to offer security and peace of mind to employees who are not enrolled in the Death and Disability Plan. You can provide this coverage as part of your benefit offerings at a lesser cost than your employees could secure on their own.

You can provide Term LIfe and Accidental Death and Dismemberment coverage in one of two ways:

• a fixed amount of coverage in incremental amounts from $5,000 to $50,000, or
  
• an income-based benefit amount of one or two times the employee’s effective salary, rounded to the next highest one thousand dollars, up to $200,000
  

Here's why the Term Life and Accidental Death and Dismemberment Plan may be right for you and your employees:

• Rates are not based on age.
  
• There are no separate smoker rates.
• No evidence of insurability is required.
• You can offer this coverage as a tax-free benefit to employees, up to the IRS limit of $50,000.

Coverage details

• If a member dies, a lump-sum term life benefit equal to 100% of the coverage amount is paid to the member’s designated beneficiary or eligible survivors.
• Accidental death and dismemberment (AD&D) benefits are payable in addition to term life coverage in cases where death or certain injuries, such as the loss of a limb, sight, or hearing, occur as a result of an accident.
• The accidental death benefit equals 100% of the coverage amount. For other covered losses, the AD&D benefit equals from 25% to 100% of the coverage amount, depending on the injury.
• If multiple injuries occur from the same accident, the AD&D benefit is capped at 100% of the coverage amount.
• If a member dies as a result of a covered accident, a children’s education benefit of up to $10,000 a year is paid to each dependent child under the age of 25 for up to a total of four years of full-time study beyond high school after the member’s accidental death.
  

Cost

The Term Life and Accidental Death and Dismemberment Plan is paid 100% by the employer. Your cost is 20 cents per month per $1,000 of coverage for each covered employee.

For even greater security and peace of mind, you can offer supplemental death benefits to employees enrolled in the Term Life and Accidental Death and Dismemberment Plan.

Eligibility

You can provide term life and accidental death and dismemberment coverage to employees regularly scheduled to work at least 20 hours per week who are not enrolled in the Death and Disability Plan.

Interested in offering the Term Life and Accidental Death and Dismemberment Plan? Here's what to do next.

For current employers

If you currently offer benefits through the Benefits Plan of the Presbyterian Church (U.S.A.), you may elect this benefit when you update your Employer Agreement for the following year.   

For new employers

If you do not currently offer benefits through the Benefits Plan and would like to learn more about its features and how the Board of Pensions serves employers, call our Employer Services team at 800-PRESPLAN (800-773-7752) (TTY: 711) to discuss how we can best meet your and your employees' needs.