HII Newport News Operations Summary Plan ... - Benefits Connect

Please refer to Q&A 19 for the appeals procedure if any of the benefit provisions of
the Plan are denied.
Accelerated Benefit Option (ABO)
14. Is a benefit payable if I become terminally ill
Yes. The basic and optional life insurance coverage includes a special feature that
helps you cope with the financial difficulties often associated with terminal illness.
You or your legal representative can apply for an accelerated benefit if your life
expectancy is less than 12 months because of illness or injury. The amount of the
accelerated benefit is 50% of the total life insurance amount. The benefit is payable as
long as it not has been previously assigned and proof of your terminal illness is
received.
The amount of life insurance paid upon your death will be decreased by the amount
of the accelerated benefit that has been paid.
15. Is the accelerated benefit taxed
The Life Insurance accelerated benefit is intended to qualify for favorable tax
treatment under the Internal Revenue Code of 1986. If so, the benefit will be excluded
from your income and won’t be subject to federal taxation. However, tax laws related
to accelerated benefits are complex and you should consult with a qualified tax
advisor about your individual situation.
16. Can the accelerated benefit affect my or my family’s eligibility for public
programs
Receipt of an accelerated benefit may affect your, your spouse’s or your family’s
eligibility for public assistance programs such as Medical Assistance (Medicaid) and
Supplementary Social Security Income (SSI). You should consult with social service
agencies and with a qualified tax advisor about your individual situation.
Loss of Benefits
17. Under what conditions might benefits outlined in this SPD become unavailable
Entitlement to the benefits which are provided by this Plan would be lost or forfeited:
• 30 days after last day of work or 31 days after last day on roll for an employee not
working due to illness or injury;
• Upon transfer to a job classification out of the bargaining unit;
• If an employee or a beneficiary, in connection with the filing of a claim, fails in
any respect to fulfill Plan requirements as they are stated herein;
Life Insurance Plan
April 2011
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