Group Term Life Insurance
The policy pays a designated beneficiary (or
beneficiaries) a fixed sum of cash in the event of a covered employee’s
death. This insurance is purchased on a year-by-year basis and
accumulates no cash value. The Group Term Life Insurance program also
includes a special Accidental Death and Dismemberment provision, which
doubles the amount of basic benefit if the death is the result of an
accident or the payment if dismemberment occurs.
For eligible employees, the County will pay for an amount equal to one
times the annual salary, rounded up to the next $1,000. For At-Will
(Management) employees, the County will pay for an amount equal to two
times the annual salary, rounded up to the next $1,000. The minimum
benefit is $10,000. Coverage becomes effective 30 days following the
date of hire.Optional Coverage
Additional coverage equal to one or two times your annual salary can be
purchased. If optional coverage exceeds $50,000 as a new hire or if
coverage is increased during open enrollment, an Evidence of
Insurability form must be completed. These forms are available below.
The optional coverage will not go into effect until the insurance
carrier approves the application.
The first $50,000 of coverage (including Core and optional coverage) can
be paid with pretax deductions. If total coverage exceeds $50,000 (core
and optional), the participant is subject to additional taxes.
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The county provides group-term life
insurance with optional buy-up coverage available through Sun Life for
employees as well as limited amounts for dependents (up to $10,000).
While the Sun Life policy offers a convenient way to purchase term life
insurance for active employees, dependent coverage options are limited,
the policy is not affordably portable upon separation and retirees are
limited to a $5,000 death benefit. The Colonial policy provides greater
flexibility, is available for employees and dependents regardless of
pre-existing medical conditions (with the exception of HIV) and is
completely portable upon retirement or separation of service. This
coverage is employee-paid and is available via after-tax payroll
deduction. Consult the product brochure for details. |
