Humana's Basic Life Insurance: What You Need To Know

Humana's basic term life insurance plan offers peace of mind to employers and employees alike. The plan includes guaranteed issue amounts for eligible employees, spouses, and dependent children, who will receive a specified amount of life coverage without medical underwriting. Employees can also select from a range of employer-funded coverage options to ensure their families are taken care of after their passing. Additionally, Humana offers prompt payment to beneficiaries, direct communication with their specially trained life insurance staff, and online claim forms for faster and easier filing.

Humana's basic term life insurance plan features

Humana's basic term life insurance plan is designed to protect employees and their families from unforeseen events. The plan offers peace of mind with affordable coverage options. Here are the key features of Humana's basic term life insurance plan:

Guaranteed Coverage:

Eligible employees, their spouses, and dependent children receive specified life coverage without medical underwriting. This ensures that employees and their families are protected regardless of their medical history.

Waiver of Premium:

Premiums for a covered person are waived after a total disability that lasts for six months, starting before their 60th birthday, and continuing until they turn 65. This feature provides financial relief during challenging times.

Guaranteed Conversion:

If an employee or dependent loses coverage due to job loss, loss of eligibility, or age-related reduction, the policy can be converted into an individual whole life insurance plan. This option ensures continuous coverage even during life transitions.

Accelerated Benefit for Terminal Illness:

Humana provides an accelerated benefit of 50% of the basic group term insurance amount (up to $250,000) upon proof of terminal illness. This benefit offers financial support when it's needed most.

Death Benefits:

The plan includes death benefits for the spouse until age 65 and for dependent children from 15 days old to 26 years old. These benefits provide financial assistance to grieving families.

Optional AD&D Coverage:

Humana's basic term life insurance plan offers optional Accidental Death and Dismemberment (AD&D) coverage. This provides additional compensation in the event of certain disabling accidents or accidental loss of life.

Employee Coverage Options:

Employees can choose from various coverage options, including a flat amount, a multiple of their salary rounded to the nearest $1,000, or coverage based on employee classification. This flexibility allows employees to select the level of protection that best suits their needs.

Spouse and Dependent Child Coverage:

Spouse coverage ranges from $5,000 to $20,000, while dependent child coverage starts from $500 and can go up to $5,000. These options ensure that families have the financial support they need.

Minimum and Maximum Coverage Limits:

The basic term life insurance plan has a minimum coverage of $10,000 to $15,000 and a maximum coverage of the lesser of seven times the annual salary or $1 million, combined with Supplemental Life coverage.

Humana's basic term life insurance plan offers a comprehensive set of features to provide financial security and peace of mind for employees and their loved ones. It is an affordable way for employers to protect their most valuable asset—their employees.

Employer-paid vs. employee-paid options

Basic term life insurance is a type of coverage offered by Humana to protect employees and their families from unforeseen events. This type of insurance is typically provided by employers as a benefit to their employees, giving them peace of mind and financial protection.

When it comes to employer-paid vs. employee-paid options, there are several considerations to make. Firstly, employers are not required to give equal benefits to all employees. Benefits can vary based on work-related characteristics such as tenure, full-time or part-time status, and exempt/non-exempt status. Companies often base benefits on length of service, with long-term, higher-earning employees contributing less to their health benefits than entry-level employees.

While employers have the option to offer health insurance to only full-time employees, they must provide it to all full-time employees if they choose to offer it to any. Similarly, if coverage is provided to any part-time employees, it must be offered to all part-timers. Employers are not required to pay a set percentage of their employees' health insurance premiums, but some insurance carriers or states mandate a minimum contribution, often at least 50% for employee-only coverage.

At Humana, the minimum employer contribution for group life insurance plans is 50% of the premium. Employers can choose to cover more to attract and retain quality employees. Employees then have the option to purchase additional voluntary term life insurance. This gives employees more control over how they protect their financial future. Supplemental life plans allow employees to increase their overall life insurance coverage and add features not included in their employer's plan. Employees pay for these plans through payroll deductions, with group rates available to groups with five or more enrolled employees.

Coverage for spouses and dependent children

Humana's Basic Term Life Insurance is designed to protect employees and their families from unforeseen events. The plan offers peace of mind with affordable coverage options.

Humana's Basic Term Life Insurance plan provides comprehensive coverage for spouses and dependent children of eligible employees. This coverage ensures financial protection and peace of mind for the entire family. Here are the key features of the coverage for spouses and dependent children:

• Spouse coverage: Humana offers a range of coverage options for spouses, starting from $5,000 to $20,000. This benefit provides financial support to the surviving spouse until the age of 65.
• Dependent child coverage: The plan also includes coverage for dependent children, ranging from $500 to $5,000. This benefit applies to children between the ages of 15 days and 26 years.
• Guaranteed issue amounts: Eligible employees' spouses and dependent children are guaranteed specified amounts of life coverage without the need for medical underwriting. This ensures that families can obtain the necessary coverage without additional hurdles.
• Waiver of premium: In the event of a total disability, premiums for the covered person may be waived after six months of continuous disability, starting before their 60th birthday and continuing until the age of 65.
• Guaranteed conversion: If an employee loses their coverage due to unemployment, loss of eligibility, or age-related reduction, the coverage can be converted into an individual whole life insurance policy. This option ensures continuous protection for the family.
• Accelerated benefit for terminal illness: In the unfortunate event of a terminal illness, a benefit of 50% of the basic group term insurance (up to a maximum of $250,000) is payable upon proof of the illness. This benefit provides financial support during a challenging time.
• Optional AD&D coverage: Humana also offers optional Accidental Death and Dismemberment (AD&D) coverage, which provides additional financial compensation in the event of certain disabling accidents or accidental loss of life. This coverage further enhances the protection for spouses and dependent children.

Humana's Basic Term Life Insurance plan gives employees the option to select from various coverage levels to ensure their family's well-being after the loss of a loved one. The plan provides financial security and flexibility, demonstrating Humana's commitment to supporting employees and their families through life's uncertainties.

Terminal illness benefits

Basic life insurance is an important tool to protect your employees and their families from unfortunate events. Humana’s life plans can help provide peace of mind with affordable coverage.

Humana's basic term life insurance plan includes an accelerated benefit for terminal illness. This benefit provides 50% of the basic group term insurance amount, up to a maximum of $250,000, upon proof of terminal illness. This benefit is designed to help individuals and their families during a challenging time, providing financial support for medical treatment, living costs, and other expenses.

The definition of a terminal illness varies, but it generally refers to a situation where an individual has received a terminal diagnosis with no known cure, or their condition has progressed to the point where it can no longer be cured, and medical professionals expect it to result in death within a certain timeframe, often defined as 12 months.

It's important to note that critical illness insurance and terminal illness cover are not the same. Critical illness insurance provides a payout for certain serious conditions that the policyholder will likely live with, while terminal illness cover is included with life insurance and pays out if the condition cannot be treated and is expected to lead to death within a specified timeframe.

Optional accidental death and dismemberment coverage

Optional accidental death and dismemberment (AD&D) coverage is a type of insurance that provides compensation in the event of certain disabling accidents or the accidental loss of life. It is typically offered as an optional, employee-paid benefit that offers additional peace of mind and financial protection for individuals and their families.

AD&D insurance covers unintentional death or dismemberment, including the loss or loss of use of body parts or functions such as limbs, speech, eyesight, and hearing. It is usually added as a rider to a life insurance policy but can also be purchased as standalone coverage. This type of insurance is particularly relevant for individuals in occupations with a high risk of physical injury.

The benefits provided by AD&D coverage are calculated as a percentage of the principal sum, with specific percentages assigned to different types of losses. For example, the loss of a thumb and index finger on the same hand may result in a benefit of 40% of the principal sum, while an accident resulting in paraplegia could lead to a benefit of 200%.

It is important to note that AD&D insurance comes with significant coverage limitations. It does not cover death due to natural causes or other excluded events, such as suicide, war, or acts of terrorism. Prospective buyers should carefully read the terms of the policy to understand the specific limitations and exclusions.

AD&D insurance is designed to supplement regular life insurance policies. It offers lower premiums due to its limited coverage of specific accidental deaths or losses of limb. This type of insurance can be a cost-effective way to provide additional financial assistance to the families of the deceased and help supplement lost income.

Frequently asked questions