Plan Administrator's Guide — List Bill - RBC Insurance

How do I calculate AD&D coverage for new employees?AD&D coverage is based on annual earnings. Salaries must be converted to annual amounts in orderto calculate AD&D coverage correctly.If your policy also includes Basic Life (as this sample does), then as in this sample, the AD&D coveragecalculation will be the same as the Basic Life calculation 1. Note however, that AD&D in this samplePlan does not have an NEM2. Therefore employees whose coverage amount is capped at the NEM willreceive the full amount they are eligible for, without having to complete the evidence of insurabilityprocess. It is important to note that although the benefit schedules are the same, the rates for eachproduct will differ and are calculated separately.Joe JonesBasic Life Calculation:AD&D Coverage:$105,000$105,000AD&D Premium: (Coverage x Rate) or ($105,000 x $0.03/$1,000)$3.15Keisha SambalaBasic Life Calculation:AD&D Coverage:$340,000$340,000**Since this sample AD&D benefit does not have an NEM, Keisha is covered for thefull $340,000.AD&D Premium: (Coverage x Rate) or ($340,000 x $0.03/$1,000)$10.201Some policies will have AD&D benefit schedules which differ from the Life schedule. Please refer to your Group InsurancePolicy for details regarding your AD&D benefit.2Refer to your Group Insurance Policy to verify the details regarding NEMs for your AD&D benefit.Plan Administrator’s Guide — List Bill27