IAMAW
Custom Choices
Frequently Asked Questions
These are frequently asked questions of enrollers by our members.
1. What is
the Machinist Custom Choice program?
2. How do I qualify for coverage?
3. How do we pay for the plans we select?
4. Can I take the benefits with me if I leave Boeing?
5. What happens to the benefits if we should ever strike?
6. Will the cost of my coverage ever increase?
7. Can the insurance company ever cancel my policies?
8. Can I cancel any of the policies whenever I want?
9. When does coverage become effective?
10. How do I enroll for benefits?
11. Can I enroll my family in these plans?
12. Will I have an opportunity to make changes to my coverage
in the future?
13. How is the premium for my coverage determined?
14. Does the union get any benefit by offering this program?
15. How is the Custom Choices program different from American
Income Life and other products the Union has endorsed before?
16. What type of life insurance policy is being offered?
17. I’ve seen life policies elsewhere that offer more coverage
for less money (premium) per month. Why is that?
18. Will I be able to increase my life insurance coverage as
my needs change?
19. Does the life insurance end when I retire or leave Boeing?
20. Does the Critical Illness with Cancer policy coordinate with
my medical benefits through Boeing?
21. Explain the need for a Critical Illness with Cancer policy.
22. What illnesses does the Critical Illness with Cancer policy
cover?
23. How are benefits payable under a Critical Illness with Cancer
policy?
24. How long may I carry the critical illness coverage?
25. What are the primary benefits of the disability coverage?
26. Is there a waiting period before disability benefits are
paid?
27. What is the definition of “disability” under
the plan?
28. Are benefits paid in the event of a partial disability?
29. Does the disability policy include a pre-existing conditions
limitation?
1. What is the Machinist Custom Choice program?
The Machinist Custom Choices program began in 1997 and was designed to provide more financial security for members and their families through a series of individual insurance products offered at the worksite through payroll deduction. The products developed have benefits and features not normally available to an individual and were negotiated based on the national size of our membership.
2. How do I qualify for coverage?
If you are actively at work, benefits under the life and disability plans are guaranteed issue. Life insurance is also guaranteed for your children and grandchildren. If your spouse has been hospitalized or treated at a medical facility on an in or outpatient basis within the past 6 months, the application will be sent to underwriting for review.
There are four simple health questions required for the Critical Illness with Cancer coverage. With affirmative answers to these questions, the member is guaranteed $20,000 of coverage and their spouse is guaranteed $10,000. If a member wants to apply for $50,000 of coverage on themselves or $20,000 on their spouse, there are three additional health questions. Your enrollment counselor will cover these questions with you.
The long-term disability application includes two health related questions. While our enrollment counselors ask these two questions of everyone that applies for long-term disability coverage, as long as we maintain a 20% or higher rate of participation in the plan, coverage is guaranteed. The insurance company will not even look at your responses to the questions.
3. How do we pay for the plans we select?
Premiums for the coverage(s) selected are deducted from your paycheck each pay period.
4. Can I take the benefits with me if I leave Boeing?
The life and critical illness with cancer policies are fully portable, and can be taken with you at the same cost and benefits if you ever leave Boeing. At that time, you would pay premiums directly to the insurance company. The disability coverage stops if you retire, leave Boeing, or are no longer a member of the IAMAW.
5. What happens to the benefits if we should ever strike?
The Life and Disability policies contain a Strike waiver of premium provision which will keep your policies in effect for up to 6 months in the event of a strike. You will not need to pay any premium during that time and no back premiums will be collected when you return to work.
The Critical Illness with Cancer product includes a 6 month unemployment benefit. If you are out of work for three months, are receiving state unemployment benefits, and have had the policy for at least six months, your monthly payments will be waived for up to six months.
6. Will the cost of my coverage ever increase?
Premiums for the Permanent Life Insurance policies are guaranteed for the life of the policies and will never increase.
Premiums for the Disability Insurance do not increase as you get older. The insurance company can increase the premiums for all policyholders after the first policy year. It is important to note that while this is a possibility, the insurance company has never felt the need to increase the premiums.
Premiums for the Critical Illness policies do not increase due to age for a minimum of 20 years or at age 70, whichever comes first. Premiums are guaranteed for the first policy year. At that time, the insurance company could increase the premium, but to no more than the maximum premium that is stated in the policy. While there is a possibility the insurance company may increase your premium after the first year, there has never been a need to increase the premium for this coverage.
It is also important to know that the Critical Illness with Cancer policies are guaranteed renewable every 20 years. When you have held the policy for 20 years, you may renew the coverage without any health questions for another 20 years or to age 70, whichever is earlier. Premiums for the new (renewed) policy are based on your or your spouse’s age at that time.
7. Can the insurance company ever cancel my policies?
The Life Insurance, Critical Illness with Cancer, and Disability policies can only be cancelled by the carrier if premiums are not paid.
8. Can I cancel any of the policies whenever I want?
Since these are individual policies that you own, you may cancel them at any time. If you decide that you do not want the coverage within 30 days after receipt of the policies, you may cancel them and receive a full refund of all premium paid to that point.
9. When does coverage become effective?
Life insurance coverage is immediate as long as the amount applied for is within the guaranteed issue guidelines. If a member applies for an amount on themselves, their spouse, children, or grandchildren that exceeds the guaranteed issue limit, the amount exceeding the guaranteed issue will not become effective until approved by the insurance company.
The death benefit portion of the Critical Illness policy is effective immediately. There is a 30 day waiting period from the policy effective date for all conditions except cancer and cancer in situ. Cancer and cancer in situ have a 90 day waiting period.
The effective date for the disability coverage is determined by the date you enroll and when the first deduction is taken from your paycheck. Your enrollment counselor will explain the specifics of the plan and the effective date of coverage to you during your meeting.
10. How do I enroll for benefits?
Enrollment counselors will visit all facilities within the Puget Sound region. These salaried enrollment counselors are IAMAW members and will meet individually with each IAMAW member. They will explain the benefits of each plan, provide premium information, answer any questions you have regarding the program, and enroll you in the plans you select. Meetings with these enrollment counselors will be coordinated by your shop steward. He or she will notify you when it is your time to meet with an enrollment counselor.
11. Can I enroll my family in these plans?
Life insurance coverage is available for spouses, children (through age 21 or 23 if a full-time student), and grandchildren (through age 15). The Critical Illness with Cancer policy is available to spouses. Disability coverage is only available to members, and is not offered to their spouses.
12. Will I have an opportunity to make changes to my coverage in the future?
Each year, the enrollment counselors will be back at your facility to answer any questions you may have about the products and make changes and/or additions to your existing coverage. If you have questions regarding your coverage before the enrollment counselors arrive at your facility for the next open enrollment, you can call Employee Benefit Systems toll free number - 888-521-2900.
13. How is the premium for my coverage determined?
Premiums are based on the proposed insured’s current age. Premiums for the life and disability insurance do not depend on your gender or whether or not you smoke. There is a non-smoker discount with the Critical Illness with Cancer policy.
14. Does the union get any benefit by offering this program?
The union believes the program provides benefits that are currently unavailable to many of its members. The plans available through the Machinist Custom Choices program supplement the benefits available through Boeing and provide additional financial security for IAMAW members. To date, over 60,000 members have enrolled in one or more of the plans. Every member has different needs. The union encourages each member to consider their circumstances and base their decisions on their specific needs.
It is important to note that the IAMAW does not receive any of the premiums you pay through payroll deduction. 100% of the insurance premium deducted from your paycheck goes directly to the insurance companies, Boston Mutual and/or EMC National Life.
15. How is the Custom Choices program different from American Income Life and other products the Union has endorsed before?
The Machinist Custom Choices program has been reviewed and unanimously supported by the Executive Council, and was presented and approved by all official delegates at the 2000 Grand Lodge Convention. The American Income Life program was not approved by the IAMAW Executive Council and was never presented at a Grand Lodge Convention.
The coverages offered through the Custom Choices program were customized to supplement and enhance the benefits provided to Machinists by Boeing. In many instances, our members do not have access to these types of coverages on the open market. The availability of these products to members without health questions is something they may never be offered again.
Enrollments are being conducted at the worksite by salaried enrollment counselors. These counselors are not commissioned sales people. They are IAMAW members just like you. They are there to help you make decisions that are important for you, and your family’s, financial security. The IAMAW believes that the 15 minutes you spend with an enrollment counselor is well worth the time.
16. What type of life insurance policy is being offered?
The life insurance product offered through the Custom Choices program is a whole life policy. Unlike term life policies, the premium for a whole life policy is guaranteed never to increase and the death benefit remains the same for the life of the policy. In addition, the policy builds “cash value” that earns interest and grows over the years that you have the policy. The “cash value” is paid to you if you ever surrender the policy. The policy is permanent and provides coverage to age 95. At that time, the face amount is paid to the beneficiary.
17. I’ve seen life policies elsewhere that offer more coverage for less money (premium) per month. Why is that?
Those life insurance policies, known as “term” life insurance, are less expensive for the first several years, but they increase in cost as your age increases. The “whole life” insurance offered through the Custom Choices program begins with a higher cost than term life, but that cost remains level for the life of the policy. As the cost of the term insurance increases, it will eventually surpass the cost of the whole life and could become unaffordable at a time when your family most needs the protection. In addition, whole life insurance builds cash value that can be paid out to the policyholder should they ever cancel their policy.
18. Will I be able to increase my life insurance coverage as my needs change?
If you participate at any level during your initial enrollment, increases during future open enrollments are guaranteed. There are no questions pertaining to your health status up to the $15 per week maximum. This is a tremendous benefit, and is only available through the buying power of the Custom Choices program.
For example, if you apply for the minimum coverage ($2 per week) when you are first eligible and wish to increase that coverage to $15 per week five years later, you may do so regardless of your health. Any other life insurance program would require you to complete a health questionnaire and possibly have a physical exam.
19. Does the life insurance end when I retire or leave Boeing?
The life insurance policies are individual policies and are owned by you. As such, they are fully portable. If you retire or leave Boeing for any reason, you may continue the coverage at the same cost and benefit levels. At that time, you would pay premiums directly to the insurance company.
20. Does the Critical Illness with Cancer policy coordinate with my medical benefits through Boeing?
The Critical Illness with Cancer policy supplements the medical benefits provided by Boeing. Benefits are paid directly to you (never to a Doctor or Hospital) and are paid in addition to any benefits you receive through your Boeing medical plan. These benefits can be used by you to pay the deductibles and other out of pocket expenses of your major medical plan. They can also be used for travel necessary to secure the best possible treatment and other expenses not covered by the medical plan.
21. Explain the need for a Critical Illness with Cancer policy.
While life insurance provides financial security in the event of death, Critical Illness with Cancer policies provide security when you are diagnosed with a covered critical illness. Many individuals who have been diagnosed with what once was a fatal illness are now overcoming the odds and surviving. Benefits from the Critical Illness policy are paid to you immediately upon diagnosis and help if you are out of work for a while or have to come back to work in a lower paying job because your illness requires a less physical or stressful position. Benefits can be used to pay your mortgage, cover non-medical expenses such as travel or a spouse’s time off work, pay childcare expenses, etc.
22. What illnesses does the Critical Illness with Cancer policy cover?
The Critical Illness with Cancer policy covers illnesses such as heart attacks, strokes, invasive cancer, kidney failure, paralysis, and more.
23. How are benefits payable under a Critical Illness with Cancer policy?
Benefits are paid to you in a lump sum upon diagnosis of a covered critical illness, or to your beneficiary in the event of your death.
24. How long may I carry the critical illness coverage?
The policy can be renewed every 20 years, and may be continued to age 70. Between the ages of 65 and 70, you have the right to exchange the critical illness policy for permanent life insurance with no health questions.
25. What are the primary benefits of the disability coverage?
The disability income policies can replace up to 60% of your lost wages, and benefits are payable for up to the earlier of 5 years or to age 70. It should be noted that benefits for mental illnesses are payable for a maximum of 24 months and benefits for alcohol and drug addiction are limited to 15 days in any 12-month period.
26. Is there a waiting period before disability benefits are paid?
Disability benefits are paid after six months of disability. The plan was designed this way to allow for continuous coverage with the short-term disability benefits provided by Boeing.
27. What is the definition of “disability” under the plan?
In order to receive a benefit under the policy, you must be “totally disabled”. This means that during the first 24 months of your disability, you are unable to perform the duties of your current job. After 24 months, you must be unable to perform the duties of any job for which you are reasonably qualified by training, education, or experience.
28. Are benefits paid in the event of a partial disability?
Partial disability means that you must be able to perform one or more, but not all, of duties of your job, or be able to perform some or all of the duties of another occupation. Partial disabilities which follow a “total disability” will be payable for a maximum of 12 months, not to exceed 5 years or age 70 when combined with the payments received while you were totally disabled. Partial disability benefits are equal to 50% of the Disability Benefit; however, the partial disability benefit plus your back to work earnings cannot exceed 100% of your earnings before you went out on disability.
29. Does the disability policy include a pre-existing conditions limitation?
If you have been treated for or diagnosed with an illness, sickness, disease, or physical condition within the 12 months preceding the effective date of your coverage, no benefits will be paid for a disability related to that condition until you have been covered for12 months.