Sample Benefit/Condolence letters
Please work with the client to see which benefits must be outlined in the benefits letter.
Recommended: pension, life insurance, 401K.
Condolence Letter Example:
Personal and Confidential
«Survivor_Name»
«Address»
«City», «State» «ZIP»
Please accept our condolences on the death of Deceased Name. We have assigned a Survivor Support Advocate to assist you through this difficult time. The Survivor Support Advocate is here to assist you by providing information about benefits that may be payable to you and/or any other beneficiaries
The following benefit groups will be notified of Deceased Name’s death; therefore it is not necessary for you to contact them. If applicable, information will be mailed separately to you within 7-10 business days regarding pension, 401(k), health insurance, life insurance and long term disability benefits.
Benefit Groups:
Health and Life Insurance: BizCo Service Center
(888) 123-4567
Pension Plan: BizCo Service Center
(888) 123-4567
401(k) Plan: 401K Administrator
(888) 123-4567
If you have questions please call the BizCo Pension Service Center toll-free at (888) 123-4567 and ask to speak with Emily, your Survivor Support Advocate. We are available Monday through Friday, 8:00 AM to 6:00 PM, Central Time, excluding holidays.
Sincerely,
Survivor Support Advocate
BizCo Service Center
Example of a Retiree Death who received a Lump Sum (LS):
[Participant's Name]
[Street Address]
[City, State ZIP]
Dear [Salutation]:
We extend our sincere condolences for the death of your [relationship], [name of deceased], who passed away on [date of death]. The purpose of this letter is to advise you of the benefits to which you are entitled as [his/her] [surviving spouse/beneficiary].
OPTIONAL (Use if Retiree has an ESP account balance):
[participant name] had an Employee Savings Plan account balance with Fidelity Investments in which you were named as the beneficiary. Upon receipt of a certified Death Certificate, we will instruct Fidelity to transfer the account balance to a new account under your name and Social Security number. Fidelity will send you a confirmation statement when the transfer is complete. If your transferred account balance is less than $1,000, Fidelity will automatically process your distribution. Fidelity will notify you prior to your distribution and will also process and distribute a Form 1099R for your tax records. Contact Fidelity Investments at 1-800-835-5095 for more information regarding your distribution options.
Enclosed is a copy of the following documents for your information:
· BizCo Employee Savings Plan Account Access Guide
· BizCo Employee Savings Plan Investment Guide
· BizCo Employee Savings Plan Summary Plan Description (SPD)
· Special Tax Notice Regarding Plan Payments
The Special Tax Notice will explain the tax implications of your distribution options. This document should be reviewed carefully before you make a decision regarding your distribution. It is recommended that you obtain professional advice from your financial advisor regarding your distribution.
You may establish or update your Beneficiary Designation at www.bizcobenefits.ehr.com or 1-888-123-4567, option 1, and option 1 again.
OPTIONAL (Use if Retiree has an ESP outstanding loan balance):
[participant name]’s loan balance will be defaulted under his Social Security number at the time the account balance is transferred. Fidelity Investments will process and distribute a Form 1099R for your tax records.
As you are aware, [name of deceased] received [his/her] retirement benefit in a lump sum payment; therefore, no additional pension payments are due from the BizCo Retirement Plan.
OPTIONAL (Use If Addressee is Beneficiary of Life Insurance):
[name of deceased] had life insurance in the amount of $[00.00] for which you are the beneficiary. To claim this benefit, please complete the enclosed Beneficiary Statement form and return it to this office along with a certified Death Certificate for [name of deceased].
Your insurance proceeds will be deposited into a MetLife Total Control Account in your name. This is an interest-bearing checking account that will give you the time to decide how to use your funds. More information about this account can be found in the enclosed MetLife letter.
Choose all applicable OPTIONS below if EE or Spouse had Medical Coverage:
OPTIONAL (Use if Retiree had pre65 Medical Insurance):
Your [relationship] was covered by Retiree Medical Insurance. [He/She] will automatically be removed from this Plan. If there are medical expenses that have not been filed for payment, please submit the claims as soon as possible.
OPTIONAL (Use if Retiree had Dental Insurance):
Your [relationship] was covered by Retiree Dental Insurance. [He/She] will automatically be removed from this Plan. If there are dental expenses that have not been filed for payment, please submit the claims as soon as possible.
OPTIONAL (Use if Retiree was 65 or older and had elected UHC RX Coverage):
If your [relationship] had been covered under the BizCo Retiree Prescription Drug Plan with UnitedHealthcare, [He/She] will automatically be removed from this Plan. If there are prescription expenses that have not been filed, please submit them as soon as possible.
OPTIONAL (Use if Spouse was 65 or older and had elected UHC RX Coverage):
If you are enrolled in the BizCo Retiree Prescription Drug Plan with UnitedHealthcare the coverage will automatically continue in your name.
OPTIONAL (Use if Spouse had pre65 Medical and/or Dental Insurance):
You will automatically continue your [Medical Insurance/Medical and Dental Insurance/Dental Insurance] in your name. The preferred payment method is automatic bank draft (the premiums are drawn from your checking account each month). We have enclosed an AMAPS form for your convenience along with information regarding the program. As a default, we will attempt to collect premiums based on the existing payment method on file.
OPTIONAL (If no life insurance benefits are due)
We request a copy of the certified Death Certificate of [name of deceased] for our records.
A pre-addressed envelope is enclosed for your convenience.
OPTIONAL (If any benefit continues or is due)
As a participant in the plan(s) provided by BizCo, you will periodically receive information from the company. It is very important that you keep us informed of your current mailing address. Please contact the BizCo Benefits Center for any changes to your personal information.
If after reviewing this information you have any questions, please feel free to call the BizCo Benefits Center at 1 (866) 472-4711 and select option #3.
Sincerely,
BizCo Benefits Team
Example of an Active Death Template:
Personal and Confidential
«Survivor_Name»
«Address»
«City», «State» «ZIP»
Re: Overview of BizCo Benefits, «Deceased_Name»
Date of Death: «Date»
Dear «Mr. or Ms. Survivor_Last Name»,
We wish to express our deepest sympathy to you in the recent loss of «Deceased_Name». Please accept our most sincere condolences.
We understand that during this difficult time, there may be a need to take care of benefit-related items. To assist with the benefit process, we have included some helpful information.
Medical/Dental Insurance
No Dependent on Coverage: Coverage has been terminated as of the date of death for «Active Deceased_Name»; however, claims may continue to be forwarded to the mailing address on the applicable Plan ID card for up to twelve months from the date of medical service.
Dependent on Coverage: Coverage has been terminated as of the date of death for «Active Deceased_Name»; however, claims may continue to be forwarded to the mailing address on the applicable Plan ID card for up to twelve months from the date of medical service.
The company-paid benefits will end for «you or your family» on «date - end of pay cycle». Coverage may be continued for 36 months under COBRA. You will be contacted directly by our COBRA vendor, Conexis, with enrollment information. Should you elect this coverage, BizCo will pay the first month’s premium. Conexis will bill you directly for premium payments.
Enrolled in HCFSA, if not, remove: Health Care Flexible Spending Account/Dependent Care
Any questions, please contact Aetna 888.238.6226. You may be able to continue this benefit by enrolling in COBRA.
(?) Retiree Medical Plan
As an option to medical coverage under COBRA, you are eligible for BizCo’s retiree medical plan. An enrollment package, with details of the plan, will be mailed separately. Please be aware that COBRA benefits are available to you for 36 months and retiree medical coverage is available as long as the retiree medical plan is in force. You will need to decide between these two options. Your eligibility for retiree medical will be lost if you do not enroll within 60 days of the date of this letter.
401(k)
Benefit: We understand that «Deceased_Name» had an account in in the BizCo 401(k) Plan. We will provide J.P. Morgan with the death certificate you provide us and J.P. Morgan will contact the beneficiaries directly.
No Benefit: We understand that «Deceased_Name» did not have an account in the BizCo 401(k) Plan.
Pension Plan
Not Pension eligible: Our records indicate «Deceased_Name» was not a participant in the plan.
Pension eligible - No Beneficiary on file: Pension benefits are payable to «Deceased_Name»’s Estate. Please provide us with a copy of the death certificate and legal documentation appointing an Executor. Once we receive this documentation, a pension package will be mailed to the Executor of the Estate.
Pension eligible - Beneficiary on file: You are entitled to a pre-retirement death benefit and a pension package will be mailed to you within 10 business days.
Telcordia – eligible for 1991 Death Benefit: Our records also indicate that you are eligible for the 1991 Death Benefit. You will receive information regarding this benefit in a separate kit. The kit will be mailed to you within the next 10 business days.
Life Insurance
Life Insurance Beneficiary: Our records indicate that you are a named beneficiary under the BizCo Group Life Insurance Plan and entitled to a benefit in the amount of «$000,000». To claim this benefit, please complete the enclosed Prudential Beneficiary Statement and return it to the BizCo Pension Service Center along with a certified death certificate:
BizCo Pension Service Center
P.O. Box 5825
Hopkins, MN 55343-5825
Enrolled Spouse or Child: If not, remove:
Dependent Life Insurance
Coverage will continue for 5 months at no cost. After that, you may convert the dependent life insurance coverage to an individual policy. You will have until __30 days___ to request conversion. Enclosed is a Request for Group Life Conversion Materials form to complete and mail to Prudential Insurance Company for additional information.
We request a copy of «Deceased_Name»’s Death Certificate for our files. A pre-addressed envelope is enclosed for your use in sending us the following:
· «Prudential Beneficiary Statement»
· «Certified Death Certificate»
If you have questions or concerns regarding the BizCo benefit programs listed above, please do not hesitate to contact the BizCo Pension Service Center at 1-877-849-4605. Also, when calling in please ask for Emily, your Survivor Support Advocate’s assistance. The BizCo Pension Service Center is available Monday through Friday from 9:00 a.m. – 7:00 p.m., Eastern Time.
Sincerely,
Survivor Support Advocate
BizCo Pension Service Center
1-877-849-4605
Enclosures: «Group Life Conversion Form»
«Prudential Beneficiary Statement»