HomeMy WebLinkAboutIR 7684 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7684
February 9, 1993
op _oATE% To the Mayor and Members of the City Council
Subject: PROPOSED ACCELERATED DEATH BENEFIT
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In response to a request by City staff, the Aetna Life and Casualty
Company has received permission from the Texas State Board of
Insurance to add an accelerated benefit to the City's group life
insurance programs. That permission has been granted for the
City's basic program. The request is still pending regarding the
universal whole life (high-option) program.
current Basic Life Insurance Program
The City offers a $10,000 life insurance benefit to all permanent
employees at no cost to the employee. This coverage is effective
30 days after employment and terminates with employment. The
employee does have individual conversion rights after termination,
however.
The policy has a double indemnity provision for accidental death
and also pays dismemberment benefits. It has a waiver of premium
feature for persons totally and permanently disabled.
Proposed Accelerated Death Benefit
Under the provisions of the proposed accelerated death-benefit, an
insured who has a medical prognosis of six months or less remaining
life may apply for an accelerated benefit of $5,000. If the Aetna
accepts the medical report, the benefit would be made available.
There are no restrictions regarding the use of these funds. The
balance of the policy ($5,000) would be payable to the insured's
eligible beneficiary at the time of the insured's death. This
feature would be available to all current employees and any person
to whom waiver of premium (total and permanent disability) has been
extended by the Aetna.
Cost
An additional administrative cost of $.35 per employee per year
(approximately $1,750) will be assessed by the Aetna to administer
this benefit.
OffICIAL RECORD
CITY SECRETARY
FT. WORTH, TEX.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7684
February 9, 1993
` 7 To the Mayor and Members of the City Council Page 2 of 2
Subject PROPOSED ACCELERATED DEATH BENEFIT
Regommendation
Because of the relatively modest cost of this feature and the
potential benefit that it affords terminally ill employees in
meeting expenses or other needs, staff proposes to add this feature
to the City's group (basic) life insurance program. This informa-
tion was presented to the Employee Benefit Committee on January 21
and was unanimously supported.
Staff will authorize the Aetna to add this feature to our coverage.
All employees and persons on waiver of premium (total and permanent
disability) will be notified of this benefit as soon as it is in
place. Funds to pay the additional administrative cost are in the
Group Health and Life Fund.
Please let me know if you require additional information.
Bob Terrell
City Manager
BT:n
OFHCW. ;RECORD
CITY SECRETARY
L LFT. WORTH, TEX.
ISSUED BY THE C17Y MANAGER FORT WORTH,'TEXAS