Events that Affect Participation
Your benefits under the Group Supplemental Life Insurance Plan are affected when you retire, if you continue to work beyond age 65, or if you become totally disabled.
When You Retire
When you retire, your supplemental life insurance and/or any spouse or child supplemental life insurance you had elected will end the last day of the month in which you retire.
If You Continue to Work Beyond Age 65
If you continue to work beyond age 65, your group supplemental life insurance will be reduced to a percentage of the coverage in force just prior to your 65th birthday. The amount of your insurance will be rounded to the next higher $10,000 and reduced by the following percentage:
Percent of Original Benefit
|80 and older||20%|
If you enter the plan after age 65, your basic life insurance will be limited to a percentage (determined according to the above schedule) of your base salary in effect upon hire.
If You Become Totally Disabled
Once you begin to receive disability benefits from the University’s Long-Term Disability Plan, the amount of life insurance coverage available is equal to your basic insurance in effect on the date you stop working because of your total disability. This coverage continues at no cost to you while you are receiving benefit payments under the Long-Term Disability Plan.
For full details, contact Human Resources.
If You Terminate Employment
Apply for Coverage Under Portability Plan
All Group Supplemental Life Insurance coverage under this plan will end on the last day of the month in which you terminate your employment with the University or when your status as a regular employee ends. Group Supplemental Life Insurance for your spouse and/ or child will also end if you die or receive disability benefits from the University’s Long-Term Disability Plan.
The Group Supplemental Life Insurance in effect for you and your dependents at the time that your group coverage ends is portable or convertible. You may apply to continue to be covered with Group Term Life Insurance under the insurer’s portability pool. You must be younger than age 80 and actively at work as of your date of termination of employment. You are not eligible if you terminate employment because of retirement or disability.
- You may apply for the lesser of five times your annual salary and $1,000,000; or the amount of Group Supplemental Life Insurance in effect at the time group coverage ends. The minimum amount is $20,000.
- You may apply for spouse coverage up to the amount of coverage they had under the plan or 50% of the employee’s Supplemental coverage amount, whichever is less.
- You may apply for child coverage up to a maximum of 50% of the employee’s Supplemental coverage or the amount the child was insured for under the Group Supplemental Life Insurance, whichever is less.
Administration of your portable coverage is continued on a direct bill basis through the life insurance company. You must apply for portability and pay your first premium within 31 days after the termination of the coverage. A physical examination will not be required, but you will need to satisfy the insurance company’s eligibility requirements as listed above. Your insurance coverage will continue during this 31-day period should you die during this period.
Convert Your Coverage to a Non-Group Plan
When your Supplemental life coverage ends, you may convert your coverage to an individual whole life insurance policy if you apply to the insurance company. If the amount of your supplemental life insurance is reduced because of age, you may also convert the lost coverage to an individual whole life insurance policy issued by the insurance company.
You must apply for conversion, satisfy the insurance company’s requirements, and pay your first premium within 31 days after the reduction or termination of the coverage you wish to convert. A physical examination will not be required to convert your coverage. Your insurance coverage will continue during the 31-day conversion period should you die during this period.