Basic and Voluntary Group Term Life Insurance

  • Basic Term Life with Accidental Death & Dismemberment (AD&D)

    The District offers Life and Accidental Death & Dismemberment (AD&D) insurance through Lincoln Financial Group. Harrison School District Two will pay 50% of the premium for a Basic Group Term Life insurance policy equal to one times your annual base salary, rounded to the next higher $1,000, not to exceed $250,000 (this is adjusted annually each July 1). HOWEVER, benefit amounts elected in excess of $150,000 will require Evidence of Insurability to be submitted. Salary increases of more than $25,000 or any salary increase for employees who already have coverage of $150,000 or more will also require Evidence of Insurability to be submitted. You cannot enroll for these products through the employee service portal, you must complete an enrollment form to elect coverage and the form must be returned to the Benefits office via hand delivery, fax, or scan and e-mail to Sherie Shupe. You are eligible to participate if you are a full-time (based on .75 to 1.0 FTE) or part-time (based on .5 FTE [or 20 ESP hours per week] to .74 FTE) employee. This policy also includes accidental death and dismemberment insurance for the same amount.

    To calculate your premium for the basic life, take your annual salary rounded to the next $1,000 (i.e. if your annual salary is $44,400 you would use $45,000). Divide this number by 1,000. Multiply this number by $.14. This is the total monthly premium. Divide this amount by 2 and that is your monthly cost. The District will pay the other 1/2 of the premium.

    If you are age 65-69 you are subject to a 35% reduction in benefit. To calculate your approximate premium for the basic life, take your annual salary rounded to the next $1,000 (i.e. if your annual salary is $44,400 you would use $45,000). Take the $45,000 times 65% which gives you $29,250. Divide this number by 1,000. Multiply this number by $.14. This is the total monthly premium. Divide this amount by 2 and that is your monthly cost. The District will pay the other 1/2 of the premium.

    If you are age 70+ you are subject to a 55% reduction in benefit. To calculate your approximate premium for the basic life, take your annual salary rounded to the next $1,000 (i.e. if your annual salary is $44,400 you would use $45,000). Take the $45,000 times 45% which gives you $20,250. Divide this number by 1,000. Multiply this number by $.14. This is the total monthly premium. Divide this amount by 2 and that is your monthly cost. The District will pay the other 1/2 of the premium.

    Once enrolled, a certificate for your policy may be obtained by visiting Lincoln Financial Group's web page. In the event of your covered death, benefits will be paid to your beneficiary(s). You may change your beneficiary anytime by submitting the Beneficiary Designation Form. Your beneficiary should contact the Benefits Office if it is necessary to file a claim.

    Voluntary Group Term Life and Voluntary Dependent Life with Accidental Death & Dismemberment (AD&D)

    You can purchase Voluntary Group Term Life insurance through Lincoln Financial Group if you are benefit eligible as defined in the first paragraph.

    Lincoln Financial Group offers employees coverage ranging from $10,000 to $200,000 in increments of $10,000 (not to exceed five times your annual salary). They offer employees voluntary group dependent life insurance for their spouses/civil union partners ranging from $5,000 to $100,000 in increments of $5,000 (not to exceed more than 50% of the employee's voluntary benefit amount of insurance) and they offer employees voluntary group dependent life insurance for their dependent children in the amounts of $10,000 per eligible child (up to age 26 with coverage ending the last day of the respective birthday month). Children age 14 days to 6 months are eligible for a $250 dependent life benefit.

    Employees do NOT have to purchase the Basic Group Term Life (50% employer paid) to participate in the voluntary life; however, employees must participate at the minimum level of $10,000 of voluntary group term life in order to purchase spouse or dependent child coverage.

    Voluntary group term life insurance premium rates, effective July 1, 2017, are listed in the Voluntary Term Life Insurance AD&D Summary. The premium for the dependent child life insurance policy is $2.00 per month regardless of the number of children. Premium rate will be adjusted annually at renewal (July 1) based on your attained age.

    Guarantee Issue and Evidence of Insurability

    The voluntary group term life insurance plans are available on a full guarantee issue basis as a new hire up to $200,000 for employees and $30,000 for spouses. The initial eligibility period is 31 days from the date you first become eligible for benefit coverage.

    Outside of your initial eligibility period, you can only increase, apply for or cancel coverage on the life insurance plans during Open Enrollment or certain Qualifying Events (different guidelines apply, however the 31 calendar day rule is still applicable so contact the Benefits office if you believe you have a qualifying event that would allow a change). During annual open enrollment employees enrolled in the voluntary life insurance can elect an additional $20,000 buy up each year up to the lesser of 5x your salary or the Guarantee Issue. You are also allowed to increase your spouse coverage by $10,000 if that does not bring the amount of coverage above 50% of the amount of coverage you have.

    If you want to increase or apply for coverage in amounts exceeding the guaranteed amounts during annual enrollment, you may be required to provide Evidence of Insurability. Evidence of Insurability is "proof of good health" and a requirement of the insurance company to assess your health in order to obtain a specific amount of life insurance. If Evidence of Insurability is required, you may complete the Evidence of Insurability application online or download the form here.

    IMPORTANT NOTES:

      • The Certificate of Insurance will be available online, you can print a copy for your records; HOWEVER, you must have enrolled for coverage for a claim to be paid.
      • Employees must be actively at work on the day coverage takes effect.
      • Spouse/Civil Union Partner and Dependents cannot be in a period of limited activity on the day coverage takes effect.
      • The Certificate of Insurance will be available online, you may print a copy for your records; HOWEVER you must have enrolled for coverage for a claim to be paid.
      • Voluntary life insurance plan can be continued after your employment terminates, provided coverage has been in force for at least 12 months and your employment is not terminating due to any sickness, injury, or retirement. Please print out the portability or conversion request form and submit it to the Benefits office for us to complete our portion, then you can complete your portion prior to submitting it to Lincoln Financial.
      • Your basic life insurance plan (which the district pays 50% of) can be converted to a whole life plan within 31 days of the loss of coverage.
      • For questions on portability or conversion, contact Lincoln Financial Group at 1-800-423-2765.

     

     

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