Optional Group Term Life Insurance Coverage and Benefits

Optional group term life insurance coverage can be a valuable addition to your benefits package. It provides a safety net for your loved ones in the event of your passing, helping to cover funeral expenses and outstanding debts.

You can typically purchase up to 5 times your annual salary in coverage, with a maximum benefit amount of $500,000. This amount can vary depending on your employer's policy.

Having this coverage can bring peace of mind, knowing that your family will be taken care of financially if something were to happen to you.

If you enroll in the Optional Group Life Insurance Program within 31 days of your employment date, you won't need to provide evidence of insurability. This is a great opportunity to get coverage for yourself and potentially add dependents in the future.

You can add dependents within 31 days of a qualifying event, such as marriage or the birth or adoption of a child, without needing to prove your good health. This is a big plus for new employees who are starting a family.

However, if you apply for coverage after 31 days from your employment date, you will need to provide evidence of insurability. This is a standard requirement for anyone enrolling in the optional plan after the initial 31-day window.

If you want to add your spouse or dependent child to your coverage after 31 days from your employment date or a qualifying event, you'll also need to provide evidence of insurability for them. This ensures that everyone on your policy is in good health.

Here are some scenarios where evidence of insurability is required:

Overall, it's essential to understand the eligibility and enrollment requirements for the Optional Group Life Insurance Program to ensure you get the coverage you need.

Optional group term life insurance is a relatively affordable way to provide coverage for employees. It can be purchased for a fixed period, typically one to five years.

The cost of this type of insurance is usually lower than individual policies, making it a more budget-friendly option for employers. Group term life insurance can be tailored to fit the needs of the company.

Coverage amounts can vary, but they're often tied to the employee's salary, with a maximum limit that's typically between one to three times their annual income.

The plan offers a range of benefits to eligible employees and their loved ones. The University's basic program provides a foundation for coverage, but some employees may want to consider adding extra protection.

Optional term life insurance is available to eligible employees, their spouses, and dependent children. This coverage can be a valuable addition to the basic program, providing an extra layer of financial security.

The plan's term life insurance coverage can be tailored to meet individual needs, offering flexibility and peace of mind. By choosing this option, employees can help ensure that their loved ones are protected in the event of their passing.

Plan Details are a set of specifications that outline the scope, timeline, and budget for a project or initiative.

These details are often created by project managers or team leaders to ensure everyone involved is on the same page and working towards the same goals.

A typical plan detail includes a project description, which summarizes the purpose and objectives of the project.

This description should be concise and clear, providing a brief overview of what the project entails.

The plan detail also outlines the project scope, which defines what is included and excluded from the project.

This helps to prevent scope creep and ensures that all stakeholders are aware of what is expected from them.

A well-structured plan detail also includes a project timeline, which outlines the key milestones and deadlines.

This timeline helps to keep the project on track and ensures that all tasks are completed on time.

The plan detail also specifies the budget for the project, which includes all costs associated with completing the project.

This budget should be realistic and take into account all potential expenses.

In addition to these key components, the plan detail may also include other relevant information, such as project risks and assumptions.

These details help to identify potential issues and ensure that the project is well-planned and executed.

Premiums are applicable from the first of the month following the date coverage is approved. Coverage will be effective from the date the application is approved.

The monthly premium is based on the age of the employee and the amount of coverage selected. The rate applicable to the spouse's coverage will also be based on the age of the spouse.

Premiums will be applicable from the first of the month following the date coverage is approved.

The good news is that coverage will be effective from the date the application is approved, so you don't have to wait long to start benefiting from your insurance.

The monthly premium is based on the age of the employee, which means that premiums will increase as you get older.

This makes sense, since older employees are more likely to need more comprehensive coverage.

The amount of coverage selected also affects the premium, so choosing a higher coverage amount will increase your premium.

The rate applicable to the spouse's coverage will also be based on the age of the spouse, just like the employee's premium.

Voluntary rates for the group term insurance are based on age and smoking status. The rates are as follows:

The monthly rate per $10,000 of coverage varies significantly depending on age and smoking status.

You can purchase additional coverage for yourself and your loved ones through the Optional Group Life Insurance Program.

If you're enrolled, you can increase, decrease or cancel coverage online with Securian Financial through your myVRS account. You pay premiums through payroll deduction.

Here are the options for continuing your coverage as a retiree:

Securian's group term life insurance policies offer a range of additional features that can provide extra protection and peace of mind for employees and their families.

Guaranteed coverage options are available, which means that employees can be sure of a certain level of coverage regardless of their job or career changes.

Dependent coverage is also offered, allowing employees to insure their loved ones and provide for their financial security.

Waiver of premium for disabled employees is a valuable benefit that can help reduce financial stress during difficult times.

This benefit allows employees who become totally disabled before age 65 to continue their life insurance coverage free of charge, as long as they're receiving long-term disability benefits.

To qualify for waiver of premium, employees must notify the insurer of their disability within one year of their last active day at work, and provide proof of their disability within 18 months.

Here are some additional features that may be added to Securian's group term life insurance policies:

Continuation options, such as portability and conversion, can provide employees with flexibility and choice when their job or career changes.

The Optional Group Life Insurance Program is a great benefit for those covered under the VRS Group Life Insurance Program. You can purchase additional coverage for yourself and even cover your spouse and dependent children.

You can increase, decrease, or cancel coverage online with Securian Financial through your myVRS account. Premiums are paid through payroll deduction.

If you're a retiree, you may be able to continue a portion of your coverage. To qualify, you and your family must have been continuously covered for 60 months before leaving employment.

Here are the specific requirements for continuing coverage as a retiree:

As a retiree, your coverage will reduce by 25% beginning with your normal retirement age, with additional reductions occurring at ages 70 and 75. Coverage ends at age 80.

If you're looking to add more benefits to your group term life insurance policy, you can consider these additional features:

Business travel can be a high-risk activity, and accidents can happen anytime. Business travel accident (BTA) coverage provides a lump-sum payment if an insured employee dies or is injured from a covered accident while traveling for business.

This type of coverage can be added to a term life policy or purchased as an additional AD&D benefit. Business travel accident coverage can bring financial relief to employees and their families in the event of a tragic accident.

A BTA policy can be a valuable addition to an employee benefits package, especially for companies with employees who frequently travel for work.

You can purchase additional coverage for yourself through the Optional Group Life Insurance Program, which also allows you to cover your spouse and dependent children.

You can select from eight coverage options, ranging from 1x to 8x your creditable compensation, with a maximum of $975,000. Spouse insurance options range from ½x to 2x your creditable compensation, with a maximum of $487,500. Dependent child coverage options are $10,000, $20,000, or $30,000 per child.

Here are the coverage options in a chart:

You have a range of options to choose from when it comes to coverage amounts. You can select one of the eight coverage options shown in the chart to cover yourself, up to a maximum of $975,000.

You can choose from a variety of coverage levels for yourself, including 1x, 2x, 3x, 4x, 5x, 6x, 7x, or 8x your creditable compensation.

Your spouse can also be covered, with options ranging from ½x to 2x your creditable compensation, with a maximum of $487,500.

Dependent children can be covered for $10,000, $20,000, or $30,000 each.

If you're a retiree, you can continue a portion of your coverage upon leaving employment, but you must have been continuously covered during the 60 months before you leave employment.

You can choose between Option 1, which covers your creditable compensation at retirement, or Option 2, which covers twice your creditable compensation at retirement, not to exceed $375,000.

Coverage for your spouse is half of the amount you choose for yourself.

Coverage for your dependent children is $10,000 for each child.

You can maintain your benefit online and reduce or cancel optional coverage if desired.

Here are the continuation options for employees who change jobs or retire:

Group life insurance is a valuable benefit offered through the workplace, available to 57% of private company employees and 83% of government employees. You can adjust your coverage for qualifying life events or during an open enrollment period.

Group term life insurance coverage is usually tied to your annual salary, with premiums based on your age. Employers typically pay most or all of the premiums for basic coverage.

If you're covered under the VRS Group Life Insurance Program, you may purchase additional coverage for yourself and your loved ones. You can even increase, decrease, or cancel coverage online with Securian Financial.

Group term life insurance pays out a death benefit to the beneficiary you choose if you pass away while the policy remains in effect. You'll typically receive a certificate of insurance as proof of coverage.

You pay the premiums for additional coverage through payroll deduction. This makes it easy to manage your benefits and make changes as needed.

If your group policy terminates, your spouse can convert their optional life insurance to an individual whole life or convertible one-year term plan without submitting evidence of health.

This conversion privilege is available for 31 days after the policy terminates, or if your spouse has been continuously insured for at least 5 years, whichever is longer.

The maximum amount of insurance that may be converted is $200,000, or three times the Year's Maximum Pensionable Earnings under the Canada Pension Plan, whichever is less.

If your group policy terminates, your spouse can convert their optional life insurance to an individual whole life or convertible one-year term or term to age 65 plan without submitting evidence of health, provided they're under 66 years old.

The conversion privilege allows your spouse to convert their insurance to a maximum of $200,000, with the premium rate determined by their age and class of risk at the time of conversion.

You can only convert your optional life insurance within 31 days following your death, your classification changing to one in which you're not insured, or your termination of employment.

If your spouse has been continuously insured under the group policy for at least 5 years, they can convert their insurance to a maximum of three times the Year's Maximum Pensionable Earnings as established under the Canada Pension Plan, minus any amount they become eligible for under another group policy within 31 days of termination.

Termination can happen for various reasons, including nonpayment of premium, which will immediately end your coverage.

If you're changing jobs, your new employer might not offer the same insurance benefits, so your coverage may terminate due to a change in your classification to one not insured.

Termination of employment is another reason your coverage will end.

The master policy can be terminated or amended, which may affect your coverage.

If you or your spouse are called to active duty in the armed forces, your coverage will terminate.

You'll also lose coverage when you or your spouse reach age 65, depending on the type of life insurance you have.

Here's a list of reasons that can terminate your coverage:

You can apply for group term life insurance in units of $10,000, with a maximum of 20 units for yourself, totaling $200,000.

Employees under 65 can also apply for coverage for their spouse, in units of $10,000, up to 20 units, and for each dependent child, in units of $10,000.

To get coverage, you'll need to apply within 31 days of becoming eligible, or you'll have to provide evidence of insurability.

If you apply within the 31-day window, you won't need to provide evidence of insurability, but if you're applying for more than $50,000 in coverage, you will need to meet the insurer's requirements.

You can have a total of $50,000 in group-term life insurance coverage without any tax consequences, but if your total coverage exceeds $50,000, you'll need to include the imputed cost in your income, using the IRS Premium Table.

Group term life insurance is a cost-effective option for both employers and employees. It's available as an employer-provided benefit, making it a simple way for companies to offer insurance protection to their employees.

Employers can provide group term life insurance as a benefit, which can be a great way to attract and retain top talent. This type of insurance is available for a specified period of time.

Employees can also purchase group term life insurance as an individual benefit, providing them with affordable protection for themselves and their loved ones. Group term life insurance is the most popular and affordable product offered by insurance providers.

You can cover your spouse for up to twice your creditable compensation, not to exceed $487,500.

Coverage for your spouse ends when your coverage ends or if you and your spouse divorce.

If both you and your spouse are eligible to participate in the Optional Group Life Insurance Program, neither of you can buy additional coverage for the other.

The cost of employer-provided group-term life insurance on the life of an employee's spouse or dependent, paid by the employer, is not taxable to the employee if the face amount of the coverage does not exceed $2,000.

This coverage is excluded as a de minimis fringe benefit, but whether a benefit provided is considered de minimis depends on all the facts and circumstances.

If part of the coverage for a spouse or dependent is taxable, the same Premium Table is used as for the employee.

If the employer pays the full cost of the insurance, the coverage is considered carried by the employer. This is the case even if all employees are charged the same rate, as long as the employer is paying the premium.

The IRS Premium Table rates are used to determine if the premium charges "straddle" the costs, not the actual cost. This means that if at least one employee is charged more than the rate and at least one is charged less, the coverage is considered carried by the employer.

If the employer arranges for the premium payments and the premiums paid by at least one employee subsidize those paid by at least one other employee, the coverage is also considered carried by the employer. This is known as the "straddle" rule.

In cases where the employer is carrying the coverage, each employee is subject to Social Security and Medicare tax on the cost of coverage over $50,000. This tax applies regardless of whether the employee is paying the full cost they are charged.

Here are the conditions under which the employer is considered to be carrying the coverage: