Life and Disability
Protection from the Unexpected
Life’s journey includes unexpected accidents and other difficult events. BWH℠ Hotels (BWH) wants to ensure you are equipped with the benefits necessary to support an unforeseen hardship.
Basic Life Insurance
BWH provides Basic Life insurance coverage at no cost to you through UNUM. You automatically receive coverage in an amount equal to two times your base annual compensation, up to a maximum of $300,000.
This coverage is automatic; however, you must designate a beneficiary for this benefit during Open Enrollment. If you pass away while employed with BWH, the benefit is paid to your designated beneficiary.
Imputed Income
The IRS imposes a $50,000 limit on the amount of Group Term Life insurance that BWH can provide to you tax-free. If you have more than $50,000 in Basic Life insurance, the cost of the coverage (not the amount of coverage) that exceeds $50,000 is considered “imputed income.” Although this is a minimal amount each paycheck, it is reported as income on your IRS Form W-2.
Designating a Beneficiary
A beneficiary is the person or persons you name to receive your life insurance benefits if you die. You automatically are the named beneficiary of any dependent life and/or dependent AD&D benefits payable.
Voluntary Term Life Insurance
You can add to your BWH-paid Basic Life coverage by purchasing Voluntary Term Life insurance. Up to 5 times annual salary to a maximum benefit of $500,000 (in increments of $10,000).
If you elect additional coverage for yourself, you can also elect coverage for your spouse and/or child(ren). Spouse amounts in multiples of $5,000 to $500,000 maximum (not greater than 100% of your own coverage). Child coverage in $2,000 increments to $10,000 maximum.
Disability Coverage
A Safety Net for Unanticipated Events
Even when you take precautions, sometimes you can still encounter unexpected illnesses or injuries. To help you cope with the unexpected, Best Western offers two types of disability coverage through UNUM: Short-Term Disability (STD) and Long-Term Disability (LTD).
Short-Term Disability
BWH℠ Hotels (BWH) provides Basic Short-Term Disability (STD) coverage to protect you when you cannot perform your job for more than seven days due to an illness or injury.
You receive a benefit of up to 60 percent of your base weekly earnings at the time you become disabled, up to a maximum benefit of $2,309 per week. STD benefits can continue for up to 26 weeks. You are eligible for STD benefits after you have been employed for at least 180 days.
Long-Term Disability
BWH provides Basic Long-term Disability (LTD) coverage for employees after they are totally disabled for 180 days.
Employees receive a benefit of 60 percent of their base monthly earnings, up to a maximum of $10,000 per month, at the time they become totally disabled. You are eligible for LTD benefits after you have been employed for at least 180 days.
STD Buy-Up
You can purchase additional STD coverage that allows you to receive a benefit of 70 percent of your base weekly earnings at the time
you become disabled, with a maximum benefit of $2,500 per week. If you are electing STD Buy-Up for the first time, a pre-existing condition limitation exists.
When do STD Begin and End?
STD Benefits generally begin after the elimination period and end when you:
- Are no longer disabled as defined by the plan, or
- Reach the time limit for receiving STD benefits, or
- Are no longer living (deceased)
STD Exclusions
BWH’s STD plan excludes disabilities resulting from certain causes, such as the commission of a felony, military service, war, self-inflicted injuries, and work-related injuries.
Additionally, STD buy-up insurance will not cover any period of disability which begins in the first 12 months after your effective date if it is caused by, contributed to, or results from a pre-existing condition.
When do LTD Benefits Begin and End?
LTD plan benefits generally begin after the 6-month elimination period. An elimination period (also known as a waiting period) is the period of time that must pass after the employee becomes disabled, as defined by the plan, and before LTD benefits begin. These benefits end when the employee:
- Is no longer disabled as defined by the plan, or
- Reaches the limit on LTD benefits, which for BWI’s LTD plan is age Social Security Normal Retirement Age, or
- Is no longer living (deceased).
LTD Exclusions
BWH’s LTD plan excludes disabilities resulting from certain causes, such as the commission of a felony, military service, war, or self-inflicted injuries. Additionally, the LTD Plan will not cover any period of disability which begins in the first 12 months after your effective date if it is caused by, contributed to, or results from a pre-existing condition.
How to Report a Disability:
Employees must report their disability to their immediate supervisor as well as to UNUM by calling 1-866-779-1054.
| Coverage | Benefit |
|---|---|
| Short Term Disability | Covers 60% of your base annual earnings to a $2,309 maximum or 26 weeks. Benefit begins after 7 days of disability. Buy-up Short Term Disability provides for a maximum weekly benefit $2,500 for up to 26 weeks. Benefits begin after 7 days of disability. |
| Long Term Disability | Covers 60% of your base annual earnings to a $10,000 maximum. Benefit begins after 6 months of disability and payments will last for as long as you are disabled or until you reach your Social Security Normal Retirement Age, whichever is sooner. Certain exclusions as well as preexisting condition limitations may apply. Please refer to your Summary Plan Description for details or contact Human Resources about specific benefits. |