A DEATH IN THE FAMILY
Dealing with the death of a family member can be most painful and difficult. Not only are you grieving the loss of a loved one, but there are many decisions you need to make. At Deseret Mutual, we want to help relieve some of the stress you are feeling at this time. This brochure will help guide you through many of the decisions you should consider regarding your insurance and other benefits.
THINGS TO CONSIDER
• Following the death of an employee/retiree, Deseret Mutual waives the health insurance premium for one year for surviving spouses and dependent children. This waiver, however, does not apply to retiree dental insurance or to supplemental life insurance.
• Though life insurance benefits are paid to you tax-free, retirement and Thrift Plan benefits are subject to state and federal income tax.
• Surviving spouses may be entitled to certain benefits if the deceased employee (or retiree) served in the military. Contact the Department of Veterans Affairs at 800-827-1000 for more information.
Checklist
If an employee or retiree dies…
Send us a certified copy of the death certificate
If a spouse or child dies…
FREQUENTLY ASKED QUESTIONS
Q. Can Deseret Mutual discuss the death benefits with anyone in the family?
A. No. We’re allowed to disclose benefit information to the employee (or retiree), the beneficiary, or legal counsel only. If there is no beneficiary, we’ll send the benefit information to the estate representative or attorney.
Q. What if there isn’t a beneficiary on record, or the beneficiary has already died?
A. The family will need to contact an attorney to have a personal representative appointed to represent the estate.
Q. What if the beneficiary is a minor?
A. A guardian will need to be appointed by the court. If a guardian is not appointed, Deseret Mutual will hold the funds until the beneficiary comes of age and requests the money.
Q. What if the beneficiary is a trust?
A. We’ll need a complete copy of the trust upon the death of the employee (or retiree). We’ll then pay benefits according to the provisions of the trust.
Q. Can a surviving spouse remain covered by Deseret Mutual’s medical insurance?
A. Surviving spouses and eligible dependent children can continue the health insurance free for one year following the death of the employee/retiree. After that, they can keep the insurance if: (1) they are not eligible for other insurance through their own employment, etc. and (2) the deceased employee worked at least ten years as a full-time, benefited employee. Surviving spouses pay a portion of the monthly premium that is based on the number of years the employee/retiree worked. (See your Benefits Handbook for details.)
Q. What about retiree dental coverage?
A. Senior Dental insurance is only available for surviving spouses and dependents who already had the coverage before the retiree passed away. Therefore, if a retired employee did not already have dental coverage, the surviving spouse cannot sign up.
Q. What about life insurance?
A. Surviving spouses may be eligible for $5,000 of Supplemental Group Term Life (SGTL) insurance. Those who did not already have life insurance will need to meet certain health standards to qualify.
Q. What if the deceased employee (or retiree) had an unpaid Thrift Plan loan?
A. If the spouse is the beneficiary, the loan can be paid off or the unpaid balance will be considered taxable income for the year. If the beneficiary is not the spouse, the unpaid loan will be treated as taxable to the estate.
This information is provided as a service to help you make informed decisions. Nothing in this information should be considered legal, financial, investment, or medical advise. For a complete description of the plans. please refer to your Benefits Handbook. As with any major life event, you should consult with qualified prefessionals of your choice who can provide you with appropriate counsel and advise.
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