Life and Disability Coverage Clause Samples
The Life and Disability Coverage clause requires an employer or another responsible party to provide insurance benefits covering life and disability risks for specified individuals, such as employees. Typically, this means arranging and maintaining policies that pay out in the event of death or long-term disability, often specifying minimum coverage amounts or eligibility criteria. The core function of this clause is to ensure financial protection for individuals and their families in case of unforeseen life events, thereby offering security and peace of mind.
Life and Disability Coverage. If termination of this Agreement is due to any reason other than death, the Employee shall have the right to purchase any policy of insurance on his life or insuring against his disability which is owned by the Company, the exercise of which right shall be made by written notice furnished to the Company within thirty (30) days subsequent to the date of termination. The purchase price of each policy of life insurance shall be the sum of its interpolated terminal reserve value (computed as of the closing date) and the proportional part of the gross premium last paid before the closing date which covers any period extending beyond that date; or if the policy to be purchased shall not have been in force for a period sufficient to generate an interpolated terminal reserve value, the price shall be an amount equal to all net premiums paid as of the closing date. The purchase price of each disability income policy shall be the sum of its cash value and the proportional part of the gross premium last paid before the closing date which covers any period extending beyond that date. The purchase of any insurance policy by the Employee shall be closed as promptly as may be practicable after the giving of notice, in no event to exceed thirty (30) days thereafter.
Life and Disability Coverage. HHS will provide and pay one hundred percent (100%) of the cost of providing employees with $20,000 life/ADD coverage plus STD at $200 a week. Upon ratification of the contract, HHS will provide a two-week open enrollment election period for all employees to make changes or new elections under health benefits.