DallasNews Corporation automatically provides eligible employees with basic life insurance coverage at no cost. You are eligible for basic life insurance if you are a regular, full-time employee and you have completed two months of employment with an DallasNews Corporation company that participates in the plan.

Basic annual earnings are defined as your current salary or wage. They do not include bonuses, overtime pay or any other extra compensation. If your job currently includes sales commission, your basic annual earnings will be averaged over the previous 12-month period, or averaged from the date of employment, whichever period is shorter. If your salary changes during the year, your coverage amounts will also change, effective on the date of your salary increase.

You may also enroll for supplemental life insurance coverage equal to one to five times your basic annual earnings, up to a maximum of $1,000,000 (rounded to the next higher $1,000). You pay the full cost of this coverage. You pay premiums for any supplemental coverage through payroll deductions. When you or your dependents elect to increase the level of coverage, you may be required to show proof of good health by having a medical examination at Lincoln Financial’s expense.

If your combined basic and supplemental life insurance coverage exceeds $50,000, you may owe taxes on the value of your coverage over $50,000 (see Tax Considerations).

You must provide proof of good health before coverage can become effective if you:

When you are required to provide proof of good health, you must complete the Evidence of Insurability (EOI) forms. Then, DallasNews Corporation Benefits will certify the employer portion. The insurance company will review the form and notify you of its decision.

Payment to your beneficiary will be made in one lump sum. If your beneficiary is a minor or not competent, the claims administrator may pay up to $1,000 in benefits to the institution or person that appears to have assumed custody and main support, until the appointed legal representative makes a formal claim or your minor beneficiary reaches age 18.

When you become eligible for life insurance coverage, you complete a form naming your beneficiary. This form must be returned to DallasNews Corporation Benefits. A beneficiary is the person, institution or organization you name to receive your life insurance benefits in the event of your death. You may name anyone as your beneficiary, and you may change your beneficiary at any time by submitting a new form to your benefit administrator. Your beneficiary will remain the same unless you complete a new form.

If a designated beneficiary dies before you, his or her share will be paid (in equal shares) to any other beneficiaries who are still living and have been named by you. If all designated primary beneficiaries die before you, the benefits will be paid to the designated secondary beneficiaries. If no beneficiary is living or if you do not name a beneficiary for your life insurance benefits, payment is made in the following order:

If you elect dependent life or AD&D insurance coverage for your spouse or children, you are automatically the beneficiary for their insurance benefits.

Wording is important when naming your beneficiary. When making a beneficiary designation, always include your beneficiary’s address, Social Security number and the percentage of the total benefit you would like each beneficiary to receive.

Your beneficiary may assign a portion of his or her benefit directly to the funeral home to cover the cost of the funeral.

If your beneficiary is declared legally incapacitated, benefits will be paid to the legal guardian or as otherwise directed by a court of law. This decision is made by the plan administrator.

If you have been insured for at least 60 days and are certified as terminally ill (with a life expectancy of 12 months or less), you may choose the accelerated death benefit (ADB). This allows you to receive up to 75% of your basic and supplemental life insurance benefits during your lifetime if you have coverage of at least $30,000. The minimum benefit available is $10,000 and the maximum is either 75% of the life insurance benefit or $500,000, whichever is less.

Upon your death, the remaining portion of the life insurance benefit is paid to your named beneficiary. The final payment to your beneficiary will be reduced by the amount of the ADB you received, subject to policy terms and provisions.

The ADB is not taxable, but you should consult a tax advisor before making a claim. You may only take one ADB during your lifetime. To request an ADB, contact DallasNews Corporation Benefits.

Before approving an ADB, Lincoln Financial may require you to undergo a medical examination by a physician of Lincoln Financial’s choice to confirm your diagnosis of terminal illness.

If you become totally disabled (as determined by Lincoln Financial) before age 60 while covered under the life insurance plan, your basic and supplemental employee life insurance and your employee AD&D coverage will continue from the date of disability and premiums will be waived. You must give notice of the disability to Lincoln Financial within 12 months of the date you stop actively working. You must provide proof of the disability within 15 months, including a description of the disability, its cause and the date it occurred. If it is not possible to provide proof within 15 months, you must supply proof as soon as reasonably possible, but not later than one year after proof is otherwise required (unless you are legally incompetent).

Waiver of premium will end on the earliest date you:

 You must apply for the waiver of premium within the first 52 weeks of disability.

If you are absent from work (but have not terminated your employment with DallasNews Corporation), your basic and supplemental life insurance remains effective for 52 weeks from the last day you worked. Prior to the end of the 52 weeks from last day worked, you must apply for a waiver of premium. If you die, your beneficiary may be eligible to receive your basic life insurance benefits.

Your supplemental life insurance would pay a benefit only if you had continued to pay premiums during your absence from work. To receive benefits, your beneficiary must notify the claims administrator within 12 months of your death.

Your basic and supplemental life insurance coverage is limited to $1,000,000 each for a combined total of $2,000,000. Amounts of basic and supplemental coverage over $1,500,000 are subject to approval by Lincoln Financial, the plan administrator.

You do not pay taxes on the first $50,000 of basic and supplemental life insurance coverage. If the total basic and supplemental life insurance coverage for yourself is more than $50,000, you may owe taxes on the value of your coverage over $50,000. This value is called imputed income. IRS regulations require the company to report federal wages and deduct Social Security taxes (FICA) on imputed income from your paycheck and report it as taxable income on your Form W-2 each year. If you elect only the $50,000 basic life insurance option, your coverage would not be subject to taxation.

No amount of supplemental life insurance is payable if the cause of death is suicide that occurs within 24 months after: