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Essential Guide to Beneficiary Designations for Life Insurance: Estate Planning Insights for Frontier Communications Employees

Healthcare Provider Update: Healthcare Provider for Frontier Communications Frontier Communications typically partners with large insurance companies for their employee healthcare plans. As of 2025, the primary provider for Frontier Communications is UnitedHealth Group, which offers a variety of health insurance plans catering to the organization's workforce. Potential Healthcare Cost Increases in 2026 In 2026, health insurance premiums are projected to soar, with many states experiencing increases that could exceed 60%. The combination of rising medical costs and the potential expiration of enhanced federal premium subsidies is expected to drastically impact consumers. Specifically, over 22 million individuals enrolled in Affordable Care Act (ACA) marketplace plans may see their out-of-pocket premiums rise by more than 75%. As insurers like UnitedHealthcare and Anthem announce substantial rate hikes, the financial strain could leave many families facing unaffordable coverage options, further complicating access to necessary healthcare services. Click here to learn more

What Is a Beneficiary?

The receiver of Death Proceeds

As an employee and retiree from Frontier Communications, it's important to know about designating a beneficiary. A beneficiary is an individual or entity you name (designate) to receive the proceeds of a life insurance policy on your life.

Irrevocable Versus Revocable

A beneficiary can be irrevocable or revocable. You cannot change an irrevocable beneficiary. An irrevocable beneficiary has a vested property interest in the life insurance death benefit (effective immediately upon being named as a beneficiary). This interest cannot be taken away or decreased without his or her consent. A revocable beneficiary is someone whose interest is contingent; that is, it can be decreased or terminated at any time.

Primary Versus Secondary Versus Final

Frontier Communications employees can name as many beneficiaries as they want, subject to limitations set by the policy. Most policies allow you to choose more than one beneficiary at each level and the proceeds would thereby be split equally between all beneficiaries surviving at a particular level upon the insured's death.

The beneficiary to whom the proceeds go first is called the primary beneficiary. If the primary beneficiary predeceases the insured, the secondary beneficiary becomes entitled to the proceeds upon the insured's death. A 'final' beneficiary can be named as well. Final beneficiaries will receive the proceeds only if they outlive the designated primary and secondary beneficiaries. Usually, charities or more remote relatives such as aunts, uncles, nieces, and nephews are named at this level.

In addition to the primary beneficiary, Frontier Communications employees should consider naming both secondary and final beneficiaries in case you outlive the primary beneficiary, you and your primary beneficiary die simultaneously, or the primary beneficiary is unable to collect the proceeds. In such cases, if you have not named secondary or final beneficiaries, the proceeds of the policy will pass to your estate and may therefore be subject to estate taxes. Naming secondary and final beneficiaries gives some extra protection against such eventualities.

Technical Note: If you and your primary beneficiary die simultaneously (and there are no other named beneficiaries), the proceeds are distributed under the Uniform Simultaneous Death Act (USDA). That is, you are presumed to have survived the beneficiary and the proceeds go to your estate.

Technical Note: A beneficiary who kills you by accident, in self-defense, or through gross negligence or manslaughter will be unable to collect the proceeds of insurance on your life. Every state bars intentional killers from profiting from their act.

Why Is Designating the Proper Beneficiary Important?

Estate Planning Goals of Life Insurance

In estate planning, life insurance is purchased for two primary reasons: 1) to provide cash to the insured's family members for daily living expenses, and 2) to provide cash for death taxes and estate expenses. In order to ensure that your beneficiaries receive the maximum benefit from life insurance policies on your life, you must properly structure ownership of your policies to avoid income and estate taxes that might deplete the funds. Proper designation of your beneficiaries is also important.

Caution: Frontier Communications employees should note that to avoid taxes, you must arrange proper ownership of policies on your life.

Subject to Federal Estate Taxes and/or Certain Limitations

Naming or changing the beneficiaries of your life insurance policies may have federal estate tax consequences. Additionally, naming or changing a beneficiary may be subject to some limitations. Therefore, Frontier Communications employees need to understand all the ins and outs of naming/changing a beneficiary.

Who Should You Name As Your Beneficiary In Order to Avoid Federal Estate Taxes?

Not Your Estate or Your Personal Representative (Executor)

Life insurance proceeds will not be includable in your gross estate for federal estate tax purposes unless: (1) the proceeds are payable to or for the benefit of your estate, (2) you possessed 'incidents of ownership' in the policy at the time of your death or at any time during the three years prior to your death, or (3) you transferred ownership of a policy within three years of your death.

Therefore, in order to avoid inclusion of the proceeds in your estate, thereby subjecting them to estate tax, you should not name your estate or your executor as a beneficiary. If you own the policy on your death (or within three years of your death), the proceeds will be includable in your estate whether you name your estate as your beneficiary or not.

The primary reason for not naming your estate or your executor as your beneficiary is that doing so subjects the proceeds to probate expenses and claims of creditors, whereas, if someone other than your estate or your executor were named, the proceeds would pass to that person free of such expenses and claims. It is a good idea for Frontier Communications employees to make sure that policies on their life that are owned by others do not name their estate or their executor as the beneficiary since this would cause inclusion of the proceeds in their estate when this would otherwise not be true.

Tip: Some state laws provide that proceeds payable to an estate or executor are treated as if they are paid to the ultimate beneficiaries of your estate (your heirs). The IRS honors state law in these cases. The effect of the IRS honoring such state laws is that the proceeds may not be taxable in the decedent's estate if the decedent did not own the policy prior to his or her death or within three years of his or her death or if the proceeds are directed by the decedent's will to a charitable beneficiary or the decedent's spouse.

Not to a Beneficiary to Satisfy a Debt

Naming a beneficiary to receive life insurance proceeds in payment of a debt will be considered by the IRS to be for the benefit of your estate, and the proceeds will be includable in your gross estate for estate tax purposes.

Not to a Beneficiary to Pay Death Taxes or Other Estate Debts or Expenses

Naming a beneficiary to receive proceeds under an agreement that requires him or her to pay death taxes or other estate debts or expenses will be considered by the IRS to be for the benefit of your estate, and the proceeds will be includable in your gross estate for estate tax purposes.

Not to a Beneficiary to Pay Alimony or Support

Naming a beneficiary to receive life insurance proceeds to pay alimony or support will be considered by the IRS to be for the benefit of your estate and these proceeds will also be includable in your gross estate for estate tax purposes. If the decedent/insured owns the policy on his or her death (or within three years of his or her death), ownership will cause the inclusion of the proceeds in the decedent/insured's estate regardless of who the ultimate beneficiaries are.

Who Should You Name As Your Beneficiary to Avoid Limitations?

No One, If You Are Incompetent

If you are incompetent (whether or not you are legally declared to be so), you cannot name or change a beneficiary. The test for incompetency to name or change a beneficiary is similar to the test for incompetency to execute a will; that is, do you have the capacity to understand your actions?

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Tip: There is a presumption that you are competent. If a party claims that you are incompetent, that party must prove it.

Not Your Employer, If You Have Coverage Under a Group Life Policy

Frontier Communications employees should note that some states do not allow you to name your employer as the beneficiary if your coverage is under a group life policy provided by that employer.

Not A Minor, Unless a Guardian Has Been Appointed (or a Trust Is Used)

Generally, insurers will not make settlements directly to minors. Frontier Communications employees should carefully consider whether to name a minor as a beneficiary unless they also appoint a guardian or use a trust.

Only As Allowed Under a Divorce Decree or Settlement Agreement

Your right to change a beneficiary may be limited by a divorce decree or settlement agreement. In some states, divorce automatically terminates a spouse's interest in insurance on the other spouse's life. In other states, divorce allows a policyowner to change the beneficiary upon divorce, even if the beneficiary is otherwise irrevocable.

Only a Specified Class, If You (The Insured) Are a Minor

In some states, if you (the insured) are a minor, you can name only a certain class of persons as beneficiaries. That class generally includes your spouse, parents, grandparents, and brothers and sisters.

Tip: Once a minor insured has reached the age of majority, he or she can change the beneficiary of a policy on his or her life.

Someone With an 'Insurable Interest'

Some states require that where you are not the owner of the policy, the beneficiary of the policy should have an 'insurable interest' in your life. The purpose of this rule is to prevent gambling. An insurable interest is a financial interest that would be adversely affected if you died. Blood and legal relatives are presumed to have an insurable interest.

Anyone, As Long As You Have an Existing Irrevocable Beneficiary's Consent

If you want to change the beneficiary, but have already named an irrevocable beneficiary, you need that irrevocable beneficiary's written consent to do so.

Tip: An irrevocable beneficiary's property right ends at his or her death.

Anyone, As Long as You Have Your Spouse's Consent If You Use Community Funds to Pay Premiums

If you live in a community property state, any assets acquired during the marriage are considered community property (i.e., each spouses owns an undivided one half interest in the property). A spouse's interest in community property cannot be disposed of by the other spouse. If you make premium payments from community funds, the insurance so purchased is also considered community property; you must, therefore, have your spouse's written consent when naming a beneficiary to such policies.

Should You Name Your Spouse As Beneficiary?

We'd like our Frontier Communications clients to consider that naming your spouse as a beneficiary may not be a good idea. If a spouse is named as the beneficiary, the unlimited marital deduction applies, and the proceeds will pass free of estate taxes regardless of who owns the policy. However, the proceeds will be included in the surviving spouse's gross estate (unless, of course, they have been spent before the surviving spouse's death).

By naming your spouse as the beneficiary, you will only postpone estate taxes, not avoid them entirely. Additionally, if you and your spouse die simultaneously and your spouse is named as the beneficiary of a policy on your life, the USDA provides that the beneficiary (your spouse) will be presumed to have predeceased the insured (you). Since your spouse will be deemed to have predeceased you, the unlimited marital deduction will be inapplicable, and the proceeds may be subject to tax in your estate.

How Do You Name or Change (I.E., Designate) a Beneficiary?

Complete a Beneficiary Designation form

When you buy life insurance, the insurer will provide you with a beneficiary designation form. Generally, the form need only be completed (i.e., the names of the beneficiaries filled in), signed, and dated by you.

Specifically Identify All Beneficiaries and the Distribution They Are to Receive

Frontier Communications employees should be specific when naming the beneficiaries. Make sure the designation clearly identifies to whom the proceeds are to be paid (and in what order if you are naming secondary and/or final beneficiaries). If you want the proceeds to be distributed to your children (including legitimate, illegitimate, and adopted children, and children from a previous marriage), specify the name of each child to be sure the ones you want to name as beneficiaries are included and the ones you don't want to name as beneficiaries are excluded. You may want to include a clause such as 'and any afterborn children' to provide for any children not yet born.

The phrase to my lawful children may disqualify illegitimate children in certain states. If you want to ensure that the proceeds go to your wife at your death, do not say 'to my wife, Anne Boleyn.' Rather, say 'to my present wife,' since one day Anne Boleyn may no longer be your wife.

Caution: Frontier Communications employees should note that t erms such as heirs, issue, per stripes, and per capita have legal definitions. Be sure you understand what the terms mean before you use them. These Frontier Communications employees should consult a lawyer if they are not sure.

Specifically Revoke Previous Designations

When changing a beneficiary, it is advisable to specifically revoke any previous designations by simply writing this on the change of beneficiary form.

Review Beneficiary Designations Every Two or Three Years or Upon a Change of Circumstances

You may want to review your beneficiary designations every two or three years to ensure they comport with your current circumstances and wishes. Additionally, Frontier Communications employees should be sure to check and update their beneficiary designations upon the occurrence of certain life events, such as marriage, divorce, remarriage, and the birth of children.

Can You Change a Life Insurance Beneficiary In Your Will?

No. A beneficiary designation made in your will does NOT override the beneficiary designation made on the insurer's form. For any Frontier Communications employees who want to change their beneficiary, you must execute a change of beneficiary form provided by your insurer. Do not rely on your will to do so.

How does Frontier Communications Corporation determine the eligibility and participation criteria for employees in the pension plan? What are the key components that employees should be aware of in terms of service hours and years of service that can impact their pension benefits?

Frontier Communications Corporation determines pension plan eligibility based on employees' transfer from Verizon, crediting prior service under the Verizon Pension Plan to the Frontier Plan. Employees must meet the eligibility and service requirements, including hours of service and years of service, which are integral to calculating accrued benefits. The pension plan specifies that employees' service prior to the transition is recognized for determining their benefits under the Frontier plan(Frontier_Communications…).

In what ways does Frontier Communications Corporation ensure that employees transitioning from Verizon retain their accrued benefits under the new pension plan? Can you elaborate on how prior service will be accounted for under the Frontier Plan and any potential challenges that may arise in this process?

Employees transitioning from Verizon to Frontier retain their accrued benefits, with prior service credited under the Frontier Pension Plan. This is facilitated by a "Mirror Plan," which ensures that benefits under Verizon’s plan are transferred without reduction. Prior service is critical to the calculation of benefits and will continue under the Frontier Plan. However, challenges may arise regarding understanding the precise terms of service credits post-transition(Frontier_Communications…).

How does the merger of the Verizon pension plans with the Frontier Communications Corporation Pension Plan affect employeesâ€™ future benefits? What measures are put in place to ensure that Former Verizon employees receive benefits that are at least as favorable as those they previously had?

The merger of Verizon pension plans into the Frontier Communications Pension Plan guarantees that former Verizon employees receive benefits that are at least as favorable as those they had under the Verizon plan. The benefits accrued under Verizon are preserved, and future benefits are determined similarly, subject to Frontier’s amendments(Frontier_Communications…).

What resources are available for Frontier Communications Corporation employees to access more detailed information regarding their pension plan benefits? How might these resources assist in understanding the changes post-merger with Verizon?

Frontier provides detailed pension information through resources such as the Milliman Benefits Service Center. Employees can access these resources to better understand the impacts of the merger and ensure their benefits remain intact. The Summary Plan Description (SPD) and Summary of Material Modifications (SMM) provide employees with comprehensive updates post-merger(Frontier_Communications…).

Can you explain the process and implications for employees at Frontier Communications Corporation if they decide to appeal a denied pension claim? What steps must they take, and how does the appeals process ensure compliance with ERISA regulations?

If an employee’s pension claim is denied, they may appeal by submitting a written claim to the Plan Administrator, with additional documentation if requested. The appeals process ensures compliance with ERISA regulations, offering employees multiple review stages to reconsider denied claims(Frontier_Communications…).

How does Frontier Communications Corporation communicate updates to its pension plan practices to employees? Are there specific intervals or methods by which changes are shared, and how can employees keep abreast of these changes?

Frontier communicates pension plan updates to employees through various channels, including formal documents like the SMM and SPD. Updates are typically distributed periodically, with critical changes communicated as needed. Employees should regularly check for updates to stay informed(Frontier_Communications…).

In the context of financial planning for retirement, how do past benefits from the Verizon pension plans get integrated into the existing Frontier Communications Corporation pension framework? What advice can be given to employees regarding their financial health as they approach retirement?

Past benefits from the Verizon pension plan are integrated into Frontier’s pension framework through the transfer of assets and liabilities. Employees should review their benefit statements and consult financial planning resources to ensure a smooth transition and optimize their retirement strategy(Frontier_Communications…).

What roles do the Milliman Benefits Service Center and the Claims Review Committee play in supporting the employees of Frontier Communications Corporation regarding their pension claims? How can employees engage with these entities for assistance?

The Milliman Benefits Service Center supports employees with pension inquiries, while the Claims Review Committee handles appeals. Employees can contact Milliman for questions and submit appeals to the Claims Review Committee if disputes arise over benefits(Frontier_Communications…).

As an employee of Frontier Communications Corporation, what should be understood about the standard forms of pension payments available at retirement? How do these options impact the total benefits an employee may receive over time?

Frontier employees should understand the available pension payment options, including annuities and lump-sum distributions. These options affect the total amount received, and employees should consider their long-term financial needs when selecting a payment method(Frontier_Communications…).

How can employees contact Frontier Communications Corporation for more information about their pension plan? What are the best practices for reaching out and ensuring that their inquiries are handled efficiently?

Employees can contact Frontier regarding pension plans through the Milliman Benefits Service Center by phone or via their online portal. It is recommended to prepare inquiries with relevant documentation to ensure efficient handling(Frontier_Communications…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Frontier Communications offers both a pension plan and a 401(k) savings plan for its employees. The Frontier Communications Pension Plan is designed for veteran employees, particularly those in bargaining units, and is structured to provide retirement benefits based on years of service and compensation. Employees must generally have completed five years of service to become vested. The pension formula involves a standard calculation of a fixed amount per year of service. Frontier allows eligible participants to elect a full lump sum if they retire after March 1, 2022, due to the plan’s improved funded status of 91% as of February 2022 (CWA 1298). In addition to the pension, Frontier offers the Frontier Communications 401(k) Savings Plan, which is available to all employees, with specific vesting and matching rules. The company uses Fidelity to manage this plan and offers a match of up to 6% of the employee’s contributions (CWA 1298). Matching contributions are subject to a vesting schedule that requires several years of employment before the company contributions are fully vested. Employees can contribute on a pre-tax or post-tax basis, depending on their financial strategy.

Restructuring and Layoffs: Frontier Communications has undergone significant restructuring efforts, including layoffs as part of its strategy to streamline operations and reduce costs. In recent reports from 2023-2024, the company has been focusing on reducing its workforce to improve efficiency and focus on core business areas. This restructuring is crucial to understand given the current economic climate, where companies are reassessing their operations to stay competitive. The economic environment and evolving market demands are driving such changes, and it’s important for stakeholders to stay informed about these developments. Benefit and Pension Changes: Frontier has also made adjustments to its employee benefits and pension plans. Recent changes include alterations to retirement benefits and 401(k) contributions as part of its broader cost-cutting measures. These changes reflect broader trends in the industry where companies are re-evaluating their benefit structures in response to economic pressures and shifting regulatory environments. Keeping up with these changes is essential for employees and investors alike, given the current tax and political landscape that influences corporate benefit strategies.

Frontier Communications typically offers stock options to executives and senior management. These options grant employees the right to purchase Frontier Communications' stock at a predetermined price within a specified period. The company usually sets performance targets that must be met for options to vest. RSUs: Frontier Communications provides RSUs to various levels of employees, including senior management and other key contributors. RSUs are granted with specific vesting schedules, often based on tenure or performance milestones. The vesting of RSUs is generally linked to continued employment with the company. Specific Information by Year

Frontier Communications Health Benefits 1. Official Company Website: Frontier Communications Careers: Health benefits are listed on their career page, providing information about the types of insurance, eligibility, and plan details. Company Newsroom: Check for any press releases or news related to changes in health benefits or employee healthcare initiatives. 2. Employee Review Websites: Glassdoor: Employee reviews often include information about health benefits and satisfaction with healthcare coverage. Indeed: Look for company reviews and benefits summaries from current or former employees. 3. Benefits Review Websites: Payscale: Provides detailed reports on employee compensation and benefits, including health insurance. Comparably: Offers insights into company benefits, including health insurance plans and employee satisfaction. 4. News Outlets: Business Insider: Check for any articles or news reports related to changes in employee benefits at Frontier Communications. Reuters: Look for any updates or news stories related to employee health benefits. 5. Industry and Financial News: Forbes: Search for any relevant articles discussing health benefits changes or company policies affecting employees. Bloomberg: Look for reports on Frontier Communications’ employee benefits and any associated financial impacts.