BWXT Y•12 - Life Insurance - Other Important Information

The following information applies to your life insurance benefits.

Naming Your Beneficiary
You may name anyone as your beneficiary and you may change your beneficiary designation at any time by completing the appropriate form available from the Benefit Plans Office. Forms are also available on the forms web page. The beneficiary you name for basic life insurance benefits will automatically be your beneficiary for supplemental life, unless you elect otherwise in writing.

If you do not designate a beneficiary, basic and supplemental life insurance benefits will be paid to your estate.

Tax Consequences
Under current tax law, employer-paid insurance coverage in excess of $50,000 may result in additional taxable income for federal income and FICA tax purposes. This additional taxable income, called imputed income, is reported on your W-2 earnings statement as “other income.”

Claiming Benefits

You or your beneficiary must file a claim with the Benefit Plans Office in order to receive any life insurance benefits. By contacting the Benefit Plans Office, you or your beneficiary will receive the neessary forms, as well as instructions and assistance in filing forms.

Living Benefit

If you are diagnosed with a terminal illness, with six months or less to live, and have at least $10,000 of life insurance (basic and supplemental coverage combined), you may make a one-time request to receive a portion of your life insurance benefit before you die. You must furnish satisfactory proof of your illness to the insurance company before any benefits can be paid.

You may receive up to 50% of the amount of your basic and supplemental life insurance coverage, with a maximum living benefit of $250,000 of your basic life insurance coverage and $250,000 of your supplemental life insurance coverage. Benefits will be paid in a lump sum.

Living benefit payments may be taxable and may affect your eligibility for certain government benefits, such as Medicaid. In addition, the amount of benefits payable to your beneficiary upon your death will be reduced by the amount of the living benefit you receive.

If you wish to apply for a living benefit, please contact the Benefit Plans Office for forms and instructions.

When Coverage Ends
Basic life insurance and supplemental life insurance coverage end on the earliest of the following dates:

the last day of the month for which your last contribution was made if you fail to make any required contribution
when you are no longer eligible
when you die
the date the plan is terminated.

If you should die within the 30-day period after your coverage terminates, basic life insurance and supplemental life insurance benefits will be paid.

Conversion Privileges
Within 30 days after your basic life insurance and supplemental life insurance terminate, you may convert all or part of these coverages to individual insurance policies without taking medical examination. The cost for individual coverage will be based on the insurance company’s regular premium rates for the type and amount of insurance available to you through the conversion privilege.

If your basic life insurance coverage is reduced at retirement, you will also have an opportunity to convert the amount of discontinued insurance to an individual policy within 30 days after the reduction without taking a medical examination.

If your life insurance coverages terminate, you may contact the Benefit Plans Office to request conversion information.

Administrative Information
Information about the administration of your life and accident insurance benefits can be found in the section entitled “Administrative Information.”