Accidental Death & Dismemberment (AD&D) Insurance

Overview

AD&D Insurance provides you with an extra measure of protection. Under this Plan, you and/or your beneficiary(ies) receive a benefit in the event you or a family member dies or is dismembered as a result of a covered accident. This coverage is in addition to the coverage you receive under the Employee Life Insurance Plan.

Back to Top
Coverage Amounts

For You

AD&D Insurance is voluntary — you may choose to elect or decline coverage. If you do want AD&D coverage, you may choose from the following coverage levels...

  • $50,000

  • 50% of your annual base salary

  • 1 times your annual base salary

  • 2 times your annual base salary

  • 3 times your annual base salary

  • 4 times your annual base salary

  • 5 times your annual base salary

.. up to a maximum coverage amount of $500,000.

As with your life insurance coverage, AD&D coverage is rounded up to the next $1,000. For example, if your salary is $31,600 and you elect two times your salary, your coverage amount would be $64,000, not $63,200.

If your salary changes during the Plan Year, your coverage amount will automatically change accordingly; however, your FS Credits and the cost for this coverage level will remain the same until the next Plan Year.

Back to Top

For Your Dependents

If you elect AD&D Insurance for yourself, your eligible family members also receive coverage. The amounts of your dependents' coverages are based on the amount of coverage you elect for yourself, as the table below outlines.

Dependent AD&D Coverage Amounts
If You Elect AD&D Coverage The AD&D Coverage Amount For Your...
For Yourself Equal To... Spouse/DP Will Be... Children Will Be...

$50,000

$5,000

$2,500

50% of your annual base salary

$5,000

$2,500

1 times your annual base salary

$10,000

$5,000

2 times your annual base salary

$20,000

$6,000

3 times your annual base salary

$30,000

$7,000

4 times your annual base salary

$40,000

$8,000

5 times your annual base salary

$50,000

$10,000

Back to Top
Enrollment Rules

Unlike Employee Life Insurance, AD&D Insurance...

  • Is not a "core" coverage—you may elect or decline coverage, and

  • Does not require evidence of insurability (proof of good health)—you will automatically be approved for any coverage amount you elect.

The AD&D insurance coverage you choose either when you initially enroll as a new hire or during the annual Open Enrollment will remain in effect throughout the Plan Year (January 1 through December 31), unless you have a qualifying "change in status" as defined by the IRS. These include...

  • Marriage, divorce, or legal separation

  • Birth or legal adoption of a child

  • Death of a spouse/domestic partner or child

  • A change in your or your spouse's/domestic partner's employment, resulting in a loss of coverage

  • A reduction or increase in the hours of employment

If you have a change in status and want to make a change in your benefit plans and/or coverage levels, you must notify your local Human Resources representative and complete the necessary form no later than 31 days after the qualifying event (e.g. marriage, birth, etc.). If you fail to notify Human Resources within 31 days, you will not be able to change your elections until the next Open Enrollment. Any benefits change you make must be directly related to the status change.

You may update your beneficiary designations at any time.

Back to Top
How Benefits Are Paid

If as the result of a covered accident you (or your covered dependent)...

  • Die, or

  • Lose a limb or sight

... within 90 days after (and as a result of) a covered accident that occurs while you (or the dependent) are covered under this Plan, you or your beneficiary(ies) will receive a benefit.*

The actual benefit amount will be based on the extent of the loss, as shown in the table below.

* You are automatically the beneficiary of any AD&D benefits payable as a result of a covered dependent's death. For additional information, see Naming A Beneficiary.

AD&D Benefit Payment Schedule
If You (Or a Dependent)...* AD&D Insurance Pays...

Die

Lose both hands, both feet or sight in both eyes

Lose one hand and one foot

Lose a hand or foot, and sight in one eye

100% of coverage amount

Lose sight in one eye

Lose one hand or one foot

50% of coverage amount

Lose a thumb and index finger on the same hand

25% of coverage amount

*A "loss" means either the complete severance of a hand or foot at or above the wrist or ankle joint, the total and irrevocable loss of sight, or in the case of a thumb and index finger, the actual severance through or above the entire digit.

Back to Top

Exclusions

AD&D Insurance does not cover losses caused or contributed by...

  • A bodily disease or diagnostic, medical or surgical treatment (including a hernia of any kind); however, if the loss is caused by an infection that results directly from the injury or as a result of surgery needed because of this injury, this exclusion will not apply.

  • A mental infirmity.

  • Suicide or attempted suicide whether committed while sane or insane, or an intentionally self-inflicted injury.

  • War (declared or undeclared) or any act of war.

  • Air or space travel in instances in which the covered individual is other than:

    • a passenger with no duties at all on an aircraft being used only to carry passengers (with or without cargo), or

    • an employee acting as a crew member on an aircraft operated by the policyholder.

Back to Top

Total Disability Feature

If you become totally disabled* as a result of an accident (the type of which is covered by this Plan) and you die more than 90 days after the accident while you are still disabled, your beneficiary(ies) may receive a death benefit.

* For the purposes of this provision, you will be considered totally disabled if you are unable to work for pay or profit.

The benefit amount payable, if any, will equal 100% of your coverage amount, less the amount of any dismemberment benefit payments you received as a result of the accident. To be eligible for this benefit, the accident causing the disability must have occurred while you were...

  • Covered under this Plan, and

  • Under age 60.

Back to Top
The information in this handbook is for summary purposes only. If any discrepancy exists between the information in this Benefits Handbook and the official plan documents, the official plan documents will govern. For additional details, please see Important Information. Updated: 03/07/2011
© A&B.