My Financial Wellness: Life Insurance and AD&D

My Financial Wellness

Life Insurance and AD&D

Life Insurance and AD&D

Company-provided coverage

If you’re eligible, CVS Health automatically provides the following basic life insurance, basic AD&D coverage, and business travel accident insurance coverage at no cost to you regardless of your age.

  • Basic Life: 1x annual base benefits rate (ABBR) to a maximum of $2,000,000, regardless of age

  • Basic AD&D: 1x ABBR to a maximum of $2,000,000, regardless of age.

  • Business Travel Accident: 5x annual salary, up to a maximum of $2,000,000

  • Supplemental Life Insurance and AD&D Coverage Options

    For this 2024-2025 Annual Enrollment, you can enroll in or increase coverage to up to three times your ABBR, to a maximum of $750,000, without providing evidence of insurability even if you previously waived coverage. You have options for Supplemental Life Insurance & AD&D coverage for yourself and your family. Click here to learn more.

  • Universal Life Insurance with Living Benefits

    Two-Way Protection. Traditionally, life insurance offers protection once you’re gone. But what happens if you need cash while you’re still alive?

    Universal life insurance with living benefits offers protection in both situations, and it’s available to CVS Health colleagues who work at least 12 hours per week. Here’s a look at the key features.

    • Guaranteed issue — no medical or blood tests required if you enroll when newly eligible, during annual enrollment or if you have a qualified life change (like marriage, birth or adoption) during the year

    • Fully portable — you can take your policy with you if you retire or change employers, so long as you maintain the premiums.

    • Lower group rates through CVS Health than if purchased individually.

    Universal Life Insurance Accelerated Death Benefit for Chronic Condition
    • Can be used as traditional life insurance to provide money to your loved ones after you pass away
    • Premiums never increase due to your age
    • Borrow from the policy amount in advance, if needed*
    • Build cash value with guaranteed 3% interest annually
    • Cover unexpected costs, helping to reduce the physical, emotional and financial burden of caring for a loved one
    • Access 4% of the policy value each month for up to 50 months
    • Receive up to twice the policy's face amount, plus 25% as a paid-up policy
    • No restrictions on how you use the money
    *Loans, withdrawals and death benefit accelerations will reduce the policy value and the death benefit and may increase lapse risk. Policy loans are tax-free, provided the policy remains in force. If the policy is surrendered or lapses, the amount of the policy loan will be considered a distribution from the policy and will be taxable to the extent that such loan, plus other distributions at that time, exceed the policy basis.
    You don't need to be enrolled in any other benefit through CVS Health to enroll in this insurance, and your spouse/partner and children also are eligible for coverage. Note that tobacco users will pay a slightly higher rate.

    How It Works

    The universal life insurance policy offers protection while you’re alive — or when you’re gone.

    Death Benefit

    This insurance can function as typical life insurance, to help meet that need for you and your family.

    HOW THE DEATH BENEFIT WORKS

    $50,000 policy for a 35-year-old who does not use tobacco

    Insured passes away at age 50

    $50,000 death benefit paid to beneficiaries


    Living Benefit

    The accelerated death benefit for chronic condition, or living benefit, could help provide needed cash for you and your family if you’re unable to perform two or more of the six activities of daily living (like bathing, dressing and eating — for at least 90 days) without substantial assistance, or you’re severely cognitively impaired and need substantial supervision by another person. Your caregiver does not have to be licensed to receive the benefit.

    HOW THE LIVING BENEFIT WORKS

    $50,000 policy for a 35-year-old who does not use tobacco

    Insured is diagnosed with a qualifying chronic condition at a age 50

    $2,000 monthly benefit paid for up to 50 months= $100,000

    $112,500 total benefits received (including 25% paid-up death benefit of $12,500)


    The above hypothetical examples assume this colleague elected a $50,000 coverage amount.

    Coverage Options

    You choose the coverage amount you would like, with these options:

    • Colleague: Options of $25,000, $50,000, $75,000 or $100,000 (not to exceed 5x of your annual base benefits rate [ABBR].

    • Spouse/Partner: Options of $25,000 or $50,000.

    • Child(ren): $20,000 each (no caregiving benefit applies).

    Learn more about universal life insurance with living benefits:

    See your personalized premiums on the enrollment website, or model them on the Universal Life with Living Benefits website.

    For limitations and exclusions, see the detailed product brochure.

    Enrolling for Coverage

    You can only elect this coverage during your initial benefits-eligible enrollment period, during annual enrollment or if you have a qualifying life change (like marriage, birth or adoption) during the year. If you don’t take action, you’ll need to wait until the next annual enrollment to elect coverage. Enroll through the enrollment website, which you can access through Colleague Zone.

    This is a brief summary of TransElite® Universal Life Insurance underwritten by Transamerica Life Insurance Company (TLIC), Cedar Rapids, IA. TLIC is not an authorized insurer in New York. Policy form series CPGUL300 and CCGUL300. Forms and form numbers may vary. This insurance may not be available in all jurisdictions. Limitations and exclusions apply. Refer to the policy, certificate and riders for complete details. EB2 2834311R1 S 04/24

  • Proof of Good Health: What to Expect and When

    Proof of good health, also known as evidence of insurability (EOI), is a coverage application process in which you provide the insurance company with information about the health condition of you and/or your dependent(s). The insurance company then reviews the application to determine eligibility for the amount of insurance coverage you want to buy.

    Did you know? If you have been declined for coverage before, it doesn’t mean that you will always be declined. You can always apply again if your circumstances have changed.

    If you’re required to provide proof of good health, you’ll be notified following the enrollment period and have the opportunity to complete and submit your application online. The amount of coverage that’s subject to proof of good health will be effective after your completed application is received and approved by the carrier.

    If your ABBR increases in any year and causes your coverage amount to exceed the guaranteed issue amount for a line of coverage, or if you have previously satisfied the proof of good health requirement, you may keep your existing coverage amount without providing proof of good health again.

    Note: If you happen to be both disabled and away from work on the date your coverage would take effect, your coverage will not begin until you return to work for one full day, performing all of the material duties of your own occupation.

  • Annual Base Benefits Rate (ABBR)

    For the 2023-2024 plan year (June 1, 2023 – May 31, 2024), your ABBR is defined as follows:

    • If you have completed two or more years of service as of Feb. 28, 2023, AABR is your annual salary, as of Feb. 28, 2023, plus your total averaged annual performance-related bonuses and commissions paid during the two-year period before Feb. 28, 2023.

    • If you have not completed two years of service as of Feb. 28, 2023, ABBR is your annual salary, as of Feb. 28, 2023, plus your total performance-related bonuses and commissions paid during the one-year period before Feb. 28, 2023.

    • If you were hired or were rehired after 13 weeks on or after Feb. 28, 2023, your ABBR is your annual salary as of your date of hire/rehire. If you terminate your employment any then rehired within 13 weeks, your prior ABBR is restored.

    ABBR is updated effective on June 1 each year if you are actively at work. If you are on paid or unpaid leave, your ABBR will not be updated until you return to work for one full day. Generally, your ABBR will not change throughout the plan year.

Reminder: Keep Your Beneficiaries Up to Date

You are encouraged to elect a beneficiary/beneficiaries for all your life insurance/AD&D coverages. A beneficiary is an individual or entity that will receive the insurance proceeds if you die. You may designate one or more individuals, including a trust or your estate. If you designate more than one beneficiary, the proceeds are divided equally unless you indicate otherwise, as long as the total equals 100%.

Important: Review your beneficiary information each year and update as necessary.

More Tools and Resources to help you decide

Life Insurance and AD&D

Universal Life Insurance with Living Benefits

Learn more about universal life insurance with living benefits:

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This website provides an overview of benefits for CVS Health colleagues and is for informational purposes only. If there's any difference between this website and plan documents, official plan documents will govern. CVS Health reserves the right to amend, modify or terminate all or part of its benefits plans at any time. This description isn't an employment contract or guarantee. Colleagues may need to meet certain eligibility requirements to participate. Colleague contributions are not used to pay plan expenses for vendors or other service providers that are subsidiaries of CVS Health, except as may be permitted by ERISA. Union colleagues aren't covered unless their collective bargaining agreement specifically provides for a benefit.