An enhanced life insurance program featuring additional coverage options, insurance for dependents, and lower rates for non-smokers will be offered to regular, non-bargained-for, active staff members during open enrollment this fall.
Bargained-for staff will continue to be eligible for the current group life insurance plan. Retirees are not eligible for the new plan.
During open enrollment, eligible, non-bargained-for active staff will have the opportunity to select from seven new life insurance levels for themselves. The seven levels include benefits of one times salary, two times salary, and so forth, up to six times salary. Staff members can also choose a flat benefit of $5,000. The maximum amount of insurance is $1 million.
These new options are replacing the current life insurance program. If eligible participating staff members dont choose one of the coverage levels, they will be automatically enrolled in a coverage level that is their current coverage amount rounded up to the next multiple of their salary. They also will be charged the smokers rate.
The cost of each level is based on age and whether or not the staff member smokes. It will be shown on the worksheet in the open enrollment package mailed to staff members in early October.
Staff members who select a level of coverage higher than their automatic enrollment level will be required to provide evidence of insurability.
Staff members should check their most recent pay stub to determine how much they currently contribute toward life insurance. Both the employee contribution and the University contribution are indicated on the stub. The 1994 University contribution will remain the same for 1995, but the employee contribution may change. Staff members should note the change as indicated on their worksheet.
Non-bargained-for, active staff who are not currently covered under the life insurance benefit will not be automatically enrolled. However, they can contact the Benefits Office for an application and a satisfactory proof-of-insurability form.
Even if non-bargained-for, active staff members dont currently participate in the life insurance plan, they can select coverage for their spouse and/or eligible children. There are three benefit levels for spouses; $10,000, $25,000 or $50,000. Benefit levels for children are $2,000 per child or $5,000 per child. Coverage for children covers all children of the staff member. The beneficiary on these policies must be the employee. Life insurance for the spouse requires proof of insurability, but life insurance for children does not.
Rates (per month) for the dependent life insurance plan are:
$10,000 $4.60 $2,000 $.39
$25,000 11.50 $5,000 $.90
Staff members who have questions about the enhanced life insurance plan after reading the open enrollment materials should attend one of the fairs or call the Benefits Office at 763-1214.