Group Universal Life Insurance

Employees can purchase an added measure of protection for themselves through Prudential. Any GUL coverage elected is in addition to Basic Term Life Insurance coverage.

Coverage

GUL pays a benefit if an employee passes away while covered. If an employee elects to participate, they have the option to enroll in either:

GUL only; or
GUL and contribute to a cash accumulation fund that earns tax-deferred interest at a guaranteed minimum rate.

Employees can purchase Group Universal Life Insurance in amounts equal to 1, 2, 3, 4, 5, 6, 7, or 8 times their annual compensation, to a maximum of $4 million.

Employees pay the full cost of coverage of GUL, which is purchased on an after-tax basis. Any coverage purchased through GUL is in addition to Basic Term Life Insurance coverage.

Additional information can be found in the Plan Summary. If you would like to review the Certificate of Coverage for your State, please contact Corporate Benefits via email at [email protected] to request a copy.

GUL premiums are subject to change throughout the year due to changes in salary.

Other Information

Your coverage under GUL will be delayed if you do not meet the "Active Work Requirement" on the day your insurance would otherwise begin. Instead, it will begin on the day that you meet the requirement. The same delay rule will apply to any change in your insurance if you do not meet the Active Work Requirement on the day in which that change would take effect.

Active Work Requirement is a requirement that you are actively at work at Leidos, or at any other place that Leidos requires you to go. You are considered actively at work during normal vacation if you were actively at work on your last regular scheduled workday.

When an employee enrolls for Group Universal Life (GUL) Insurance, he or she will be required to provide evidence of insurability (EOI) if he or she:

Elects coverage in excess of the lesser of 3x annual salary or $500,000 when first eligible to enroll;
Elects to enroll for coverage after having waived coverage when first eligible; or
Elects to increase coverage by more than one benefit level or any amount exceeding 3x annual salary during Open Enrollment or within 31 days of a qualified life event;

If the elected amount requires EOI, an online EOI request will be generated as a To-Do task in Leidos’ HR System, Workday. The task will require the employee to log onto the Prudential EOIConnect website via Single Sign On (SSO) and complete the EOI request. The employee may be asked to provide additional information upon completing the initial EOI request. If required, the additional medical questions may be submitted online via EOIConnect. If the employee does not wish to submit EOI online, the employee can choose to email or print copies of the Health Statement(s) which can be faxed or mailed to Prudential.

Any EOI must be satisfactory to the plan's underwriter before coverage can be approved. The plan's underwriter uses standard underwriting rules and procedures for reviewing applications and has sole authority to approve or reject any application on the basis of health. Group Universal Life Insurance coverage will be provided at the existing level while the decision on the participant's EOI is pending.

The Waiver of Premium provision for qualifying disabled employees and the Accelerated Benefit Option for terminally ill employees provides extra support when it is needed most.

Accelerated Benefits — If an employee becomes terminally ill and is not expected to live for more than 12 months, he or she may request an accelerated benefit. The accelerated benefit is equal to 50% of the GUL coverage amount, up to a maximum of $250,000. Any remaining benefit amount will be paid to the employee's designated beneficiary upon his or her death.
Waiver of Premium

Payment of premium can be waived up to age 65, if you are:
- totally disabled for nine months
- less than 60 years old when the disability begins, and
- you continue to be totally disabled.
Premium Continuance

Employees aged 60 to 64 who are not eligible for the Waiver of Premium provision may qualify for Premium Continuance. Under this provision, premium payments must be made for the first 52 weeks of total disability and if eligibility criteria met, coverage may be continued to age 65 without payment of a premium. If premium payments are not made during the 52-week period and the employee dies during that period, no death benefit will be paid.

IMPORTANT INFORMATION FOR RESIDENTS OF CERTAIN STATES: There are state-specific requirements that may change the provisions under the Coverage(s) described in this Group Insurance Certificate. If you live in a state that has such requirements, those requirements will apply to your Coverage(s) and are made a part of your Group Insurance Certificate. Prudential has a website that describes these state-specific requirements. When you access the website, you will be asked to enter your state of residence and your Access Code. Your Access Code is 52844.

Group Universal Life Insurance will not be payable if the employee commits suicide within the first two years of being covered.

Benefits for part-time employees will be calculated by using their pay pro-rated by their regularly scheduled hours per week.

In addition to providing a life insurance benefit for your loved ones, the GUL features a Cash Accumulation Fund (CAF) that allows you to earn interest on a tax-deferred basis.

You can:

Earn guaranteed interest - The Cash Accumulation Fund has a guaranteed interest rate that will never be less than 4 percent.
Enjoy tax benefits - Earnings and interest credited on contributions to the Cash Accumulation Fund are tax-deferred. The death benefit (typically the face amount of insurance plus the Cash Accumulation Fund) is generally income tax-free to beneficiaries.
Access funds easily - You can take loans or make withdrawals from the cash accumulation fund at any time and for any reason. You can also use the Cash Accumulation Fund to pay premiums or purchase fully paid up coverage.

If you elect to withdraw from your Cash Accumulation Fund, you must complete the Owner Transaction Form.

Withdrawals

You can make a full or partial withdrawal from your cash accumulation fund for any reason. You can make up to 12 cash withdrawals per year. The minimum amount y can withdraw is $200 (or your total balance, if your total balance is less than $200). If you make a cash withdrawal, the cash accumulation fund will be reduced by the amount of that withdrawal.

The maximum partial withdrawal you can make is equal to your fund balance less any loan, loan interest and unpaid cost of premium due. If you make a partial withdrawal request for an amount greater than this, it will be treated as a full cash withdrawal.

Under current tax laws, the interest earned on your cash accumulation fund is not taxed until you withdraw more than your “cost basis.” Generally, the cost basis is equal to your contributions made (including cost of insurance premium and contributions to your cash accumulation fund), less any untaxed portion of amounts previously withdrawn. Tax laws may change from time to time, so consult your tax advisor for information on taxability. To make a withdrawal, submit a written request to the Program Manager.

Loans

You may borrow up to the current value of your cash accumulation fund, subject to plan limitations. The minimum loan amount allowed under the plan is $200. The maximum loan amount is 90% of your cash accumulation fund minus the cost of premium for one month of insurance. You will be charged up to 2% more than the interest rate earned. You may take one loan per year and only one loan can be in effect at any time.

You may repay all or part of your loan with interest by making payments directly to the Program Manager, Mercer. You cannot repay a loan through payroll deductions.

Leidos is required by law to inform you about the relationship between your insurer (Prudential) and their third-party administrator (“TPA”), Accenture Insurance Services, LLC. Click here to view the TPA Disclosure Notice.