The following information describes an insurance benefit available to all participating Air Force Federal Credit Union members ages 18 and over. Please read carefully.

Plan Features

Coverage
The plan offers full 24-hour protection against a covered accidental injury anywhere in the world (subject to U.S. regulations on restricted countries), on or off the job, on business, on vacation and at home. It covers you while flying (as a passenger only) in any licensed civilian aircraft. Your eligible dependents will be covered only if you elect the Family Plan.

Eligibility
If you are an active member of a participating Credit Union, and you are at least 18 years old, you may take advantage of $3,000 of Basic Accidental Death & Dismemberment (AD&D) coverage, at no cost to you. As such, you are also eligible to enroll in the Voluntary AD&D plan (premiums will be conveniently deducted from your credit union account). If you enroll in the Voluntary Plan, you can also elect to cover your lawful spouse and any unmarried, dependent children under age 19 (25 if full-time student). The Basic coverage is for Member only. You must reside in the U.S. (except FL, NY, SD, VT, and WA).

Family Protection
If you purchase Voluntary coverage in addition to the Basic coverage, you become eligible for the Family Plan. Coverage is available up to $300,000. The Family Plan will automatically insure your lawful spouse for 50% of your Voluntary Principal Sum (60% if there are no dependent children). Each eligible dependent child will be insured for 20% of your Voluntary Principal Sum (25% if no spouse). The Voluntary benefit amount reduces by 50% at member age 70 or older.

Benefits up to $300,000
We think you'll wish to consider the merits of selecting voluntary protection. The cost is affordable (just pennies per day) for up to $300,000 of benefits. Plus, when you purchase any one of the Voluntary Principal Sum amounts, you'll receive added insurance benefits. These are terrific values and combine to make this a fine protection package.

Benefit Amount and Premium Information
If you choose to purchase Voluntary Coverage in addition to the Basic Coverage paid for by Air Force Federal Credit Union, you become eligible for the Family Plan. The chart below illustrates Member Only and Family Plan monthly premium rates. Coverage is available up to $300,000, in the options shown. Many members choose an amount approximately two to five times their annual income. You should select the amount that is closest to your family's needs.

Currently Monthly Premiums as of 2011

*Please note that coverage reduces at a later age, as described below, under Benefits at Later Ages.

Benefit amounts are not guaranteed and are subject to change by agreement between the Executive Trust and New York Life Insurance Company. Premiums may be changed by agreement between the Executive Trust and New York Life Insurance Company on any premium due date and on any date which benefits are changed. However, your rates may be changed only if they are changed for all others in the same class of insureds. For example, a class of insureds is all others with the same issue age.

1) Inflation Protection Benefit
Your Voluntary Principal Sum will increase 5% after 24 months of continuous coverage and each 24 months thereafter on your anniversary date, up to a maximum of 25%, with no increase in premium. If you increase your coverage, this benefit will be applied separately to each additional amount. Likewise, if coverage is reduced, any benefit which was increased will be reduced proportionately.

2) Seat Belt Provision
If a covered loss of life occurs while the insured person is driving or riding in a private passenger car in which he/she was properly wearing a seat belt, the Voluntary benefits will be automatically increased 50% . Private Passenger Car means a validly registered four-wheel private passenger vehicle that is not licensed commercially or being used for commercial purposes.

3) Spouse Retraining Benefit
If the Family Plan is selected and you suffer a covered Loss of Life, your spouse may receive this benefit if he/she enrolls in an institution of higher learning. The amount of this benefit will be equal to the lesser of 5% of your Principal Sum or $5,000, but not to exceed the actual cost of tuition for on school year. If you do not have a spouse, a lump sum of $1,500 will be paid to your beneficiary.

4) Accident In-Hospital Benefit
When a covered accident requires that an Insured Person be confined in-hospital for more than 7 consecutive days, the plan will pay a monthly benefit of 2% of the Voluntary Principal Sum, up to a maximum of $1,500 per month. The benefit is payable for each month of continuous confinement up to a maximum period of 12 months. Pro rata payment will be made for periods less than a full month.

5) Common Carrier Coverage
Voluntary benefits can be doubled if the loss results from an injury that occurs while the Insured Person is riding as a fare-paying passenger, in or on, or is struck by a public conveyance being operated commercially by a licensed common carrier to transport passengers for hire.

6) Dependent Child Day Care Benefit
If the Family Plan is elected, an additional 2% up to $2,000 (but not to exceed the actual costs incurred for day care for one year) of the amount of insurance will be paid annually for a maximum of five years for each dependent child under age 13 who is enrolled in a legally licensed or legally recognized Day Care facility. If no children qualify, the death benefit is increased by $1,000.

7) Education Benefit
If the death of the Insured Member results from a covered accident, the plan will pay in addition to all other benefits, 3% annually of the Voluntary Principal Sum on behalf of any insured dependent child who, on the date of the accident, is enrolled as a full-time student in any school for higher learning beyond the 12th grade level. Benefits are also payable if the child was at the 12th grade level and subsequently enrolls as a full-time student in a school for higher learning within one year following the date of the member?s death. These benefits are payable for a maximum of four consecutive years so long as the dependent child continues to be enrolled as a full-time student in a school for higher learning. If no insured children qualify, $1,000 of the Insured?s Voluntary Principal Sum will be paid to the Beneficiary.

8) Total Disability Benefit
Upon due proof that the insured member or spouse suffers an injury that causes total disability, a benefit of 1% of the amount of insurance per month will be payable. This benefit will end when: 25 monthly paymenst have been made; the insured is no longer disabled, or; all benefit payments made equal the Voluntary Principal Sum. Refer to your Certificate of Insurance for more information.

Note: Benefits 1-8 described above are not included in the No-Cost (Basic) coverage.

Your Benefit Payment Summary
If a specified loss is caused directly and independently by an accidental injury while coverage is in force, and said loss occurs within 365 days of the injury, the plan will pay as follows:

Loss of limb means actual severance at or above the wrist or ankle joint. Loss of sight, speech, and hearing means complete and irrevocable loss thereof. Paralysis means complete and irreversible paralysis of such limbs. The total benefit payable for all losses due to a single accident will not be more than the Principal Sum. Only one amount, the largest to which the Insured Person is entitled, is paid for all losses resulting from one accident.

Beneficiary
The beneficiary is the person last designated by you in writing, and recorded as such by or on behalf of New York Life. Payments for losses other than for your loss of life will be made to you. The beneficiary for dependent(s) coverage is the member.

Benefits at Later Ages
The Voluntary benefit amount reduce by 50% at member age 70 or older.

Effective Date of Coverage
The $3,000 of Basic Coverage is effective the first of the month following acceptance of the Enrollment Form. Your new or increased Voluntary coverage will become effective on the date specified by New York Life Insurance Company, provided the initial premium contribution has been paid and a completed application has been submitted. Thereafter, premium will be deducted from your account as indicated on your enrollment form. A Certificate of Insurance will be provided.

30 Day Free Look
When you receive your Certificate of Insurance, read it carefully. If you are not completely satisfied with the terms of your new insurance, simply return your Certificate, without claim, within 30 days and your premium will be promptly refunded. Your insurance will then be invalidated.

Termination
Your coverage will end on the earliest of the next premium due date if you are no longer an eligible Credit Union member participating in the Executive Trust; the premium due date, if the required premium is not paid when due; the date the insured person enters full-time active duty in the Armed Forces; the date the group policy is terminated or modified to end coverage for the class of eligible persons to which the Insured Person belongs; or the date the Insured Person requests to end such coverage. Termination will not affect a claim for a covered loss due to an accident that occurred while coverage was in effect. Coverage for your insured spouse or child will end when your coverage ends or when the dependent eligibility requirements are no longer being met.

New York Life is licensed/authorized to transact business in all of the 50 United States, Puerto Rico, and Canada. However, not all of the group plans it underwrites are available in all jurisdictions. Please contact the Administrator for current information. New York Life's State of Domicile is New York, and their NAIC # is 66915.

Selman & Company is licensed/authorized to transact business in all 50 United States. Their Arkansas Insurance License No. is 232779, their California Insurance License No. is 0610394, and their State of Domicile is Ohio.

Your Credit Association incurs costs in connection with this sponsored plan. To provide and maintain this valuable insurance benefit, it is reimbursed for these costs. Your Credit Union also receives a fee in connection with this plan.

This Group Accidental Death & Dismemberment Insurance Plan is underwritten by: New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 under Group Policy No. G-29213-3 on Policy Form GMR-FACE/G-29213-3.

AR lic# 232779 CA lic# 610394