Voluntary Life and AD&D Insurance
- Alvis, Matt
- Jody Johnson
- DuBord Atkins, Carrie
How to Enroll in Coverage or Change Your Existing Coverage
Step 1: Visit our custom SPU life insurance Decision Support Tool: coming soon
Step 2: Review the plan summaries and other information included on the site
Step 3: Select the green "Continue to Enrollment" button on the site to bring up the form
Step 4: Complete the form and return it to SPU Human Resources
How Much Additional Life Insurance Coverage Can I Apply For?
| Additional Voluntary Term Life and AD&D Insurance | |
|---|---|
| Employee | May be purchased in $10,000 increments up to $500,000 - medical underwriting (health statement) required if over Guaranteed Issue. Guaranteed Issue limit of $200,000 is allowed during this special Open Enrollment period with no health statement required. |
| Spouse* | May be purchased in $5,000 increments. May not exceed the amount of the employee's additional voluntary amounts and limited to $250,000. Guaranteed Issue limit of $25,000 is allowed during this special Open Enrollment period with no health statement required. |
| Dependent Child(ren)* | May be purchased in $2,000 increments up to a maximum of $10,000. One policy covers all children until their 19th birthday-or until their 26th birthday if they are full-time students. |
| Voluntary AD&D is also available to you in the same coverage amounts as life insurance. | |
*PLEASE NOTE: In order to purchase voluntary term life and AD&D coverage for your dependents, you must purchase coverage for yourself. Premiums are paid entirely by the employee through payroll deductions on an after-tax basis.
What Is Guaranteed Issue Coverage?
When considering life insurance coverage, you sometimes have a Guaranteed Issue amount offered. Guaranteed Issue amounts are the level of insurance benefit that an otherwise eligible individual is allowed to purchase with no health questions being asked. This could be very important for someone with a pre-existing medical condition. Life insurance plans almost always want to know of anyone with a serious medical condition before offering them coverage. Sometimes, a condition is serious enough that no coverage will be offered when health underwriting is applied, other times the insurance company may approve a part of the applied for amount of coverage.
Eligible employees may begin Voluntary Life and AD&D coverage any month on a go-forward basis... but health underwriting normally always applies as a part of the application process before the coverage is approved. But, there are times when Guaranteed Issue coverage is available. One such time is the first 31 days of employment of a newly eligible employee.
Guaranteed Issue Amounts Available to Newly Eligible Employees
Employee Life and/or AD&D Coverage: up to $200,000
Spouse Life and/or AD&D Coverage: up to $25,000
Child(ren) Life and/or AD&D Coverage: up to $10,000
How Much Does Voluntary Life Insurance Cost?
The University provides basic term life insurance coverage in the amount two times annual earnings for all benefit-eligible employees (those at half-time employment, 0.50 FTE, and above). This coverage does include matching AD&D provisions as well. But many employees find their personal insurance needs go beyond these coverage amounts. That is why Voluntary Life and Voluntary AD&D insurance plans are offered. Eligible SPU employees and their families can obtain more insurance coverage at group rates. For those employees that are not newly eligible, health underwriting does apply. However, this involves only a limited set of health questions rather than physical exams, which is often the case with life insurance plans that are purchased on the individual market.
Benefit Reduction Due to Age
Coverage amounts for Life and AD&D Insurance for you and your dependents will reduce to 65% of the original amount when you reach age 70, and will reduce to 50% of the original amount when you reach age 75. Coverage may not be increased after a reduction.
Spouses experience the same reduction schedule, but it is based on the spouse's age.
Premiums
Employee and spouse initial premiums are based on current age and will change as the insureds age, based on five-year age bands.
Dependent children premiums are based on the cost of coverage for one child, regardless of the number of children insured.
Accidental Death and Dismemberment (AD&D) - Available at the same face amount of Life coverage. Will be provided for all covered persons (employee, spouse and dependent children) receiving Life coverage. Must have Life coverage to receive AD&D coverage.
*PLEASE NOTE: The attachments to this page include complete rate tables showing the monthly premium amounts based on age for each type of coverage. Premiums are paid entirely by the employee through payroll deductions on an after-tax basis. To be covered, all employees must be actively at work (able to perform all normal duties of your job) on the day before the insurance is scheduled to be effective. Coverage amounts for ages 70 and over reduce due to age reduction tables.
How Much Does Voluntary AD&D Insurance Cost?
Here is how to calculate the monthly insurance premiums for SPU's Voluntary AD&D coverage:
To Cancel Your Coverage
Voluntary Life and AD&D Insurance May be Cancelled Any Month
If you would like to cancel your coverage amount, or the coverage of a dependent, this can be done at any time and will be effective on the first of the month following the submission of your completed change form to SPU Human Resources. Please note that if you want to re-enroll in coverage in the future, or increase coverage, you will be subject to health underwriting and may not qualify for the coverage you apply for or once had.
Important Reminders & Resources
To obtain this coverage, you must proactively enroll and be approved for coverage by Unum.
For More Information Click Here:
As always, hardcopies of the benefits materials are available upon request. Please contact Human Resources at (206) 281- 2809 or email hr@spu.edu.