Chapter 6
Section 6-3

Employee Benefits
Group Life Insurance Program

The information in this Manual is provided to give an overview of the benefits from which to choose. For more information on these benefits, see the Group Insurance Representative in the Human Resources Office.

There are two types of coverage available: basic coverage and optional coverage.

Basic Member Coverage (State-paid)

Term life insurance is available through the State Employees Group Insurance Program. This benefit is provided automatically by the State at no cost to full-time staff members and annuitants.

• Full-time Staff Members: Each eligible active, non-retired staff member is insured for an amount equal to his/her annual salary.
  
  
• Immediate or deferred annuitants: Benefit is equal to basic annual salary as of the last day of active State employment. At age 60, the benefit amount will be $5,000.
  
  
• Survivors of staff members, immediate annuitants, or deferred annuitants prior to September 22, 1979: The benefit amount is $2,000.

Optional Coverage (Member-paid)

Staff members and immediate annuitants may purchase optional insurance at low group rates. All premiums for any optional insurance are at the member’s expense. See the life insurance booklet (available from the Human Resources Office) for complete information on optional coverage.

Optional insurance includes such things as:

• Life insurance for the member equal to one, two, three or four times his/her State-provided amount
  
  
• Accidental Death and Dismemberment (AD&D) coverage for the member
  
  
• Spouse term life insurance up to $5,000
  
  
• Child term life insurance up to $5,000 (no benefits for children under 14 days old)
  

To increase member coverage, add spouse life or purchase child life for the first time (except for newborns and newly acquired dependents), evidence of insurability is required.

Separating Employment

When a Survey staff member separates employment, he/she can continue life insurance coverage at his/her own expense. No Evidence of Insurability or medical underwriting of any kind is required.

Should the terminating staff member choose to continue coverage, he/she must pay the full premium directly to the life plan administrator. Once he/she makes a selection, the State is no longer involved in the administration or premium rate structure of these insurance benefits.

Conversion of Term Life Insurance to Whole Life

When a staff member terminates Survey employment, he/she is entitled to convert his/her insurance to an individual whole life policy. The terminating staff member may be insured under the individual policy for an amount not to exceed the amount for which he/she was insured under the Group Life Insurance Program (both basic and optional life insurance, if elected). No Evidence of Insurability will be required.

Effective January 1, 1995, immediate annuitants age 60 or older will have the option to convert the difference in their basic coverage and the $5,000 of coverage available at retirement to a whole life policy. The conversion option also applies to any reduction in optional life due to the reduction to $5,000 of basic coverage. The conversion option does not apply to Accidental Death and Dismemberment coverage.

Portable Term Life Insurance

Effective January 1, 1995, each staff member who is covered for an amount of optional life insurance will be permitted to continue a portable term group policy in lieu of converting to individual whole life insurance as described above. Staff members are eligible for this on any date that the staff member (1) terminates Survey employment or (2) retires.

In order to continue optional life term coverage, contact the applicable Survey Group Insurance Representative for a portable election form and a quote of the initial and quarterly premium payment.

The amount of coverage is limited to the amount of optional life coverage previously in force; this does not apply to basic life coverage, Accidental Death and Dismemberment, or dependent life coverage. It is possible to elect to purchase lesser amounts of coverage; for example, a person who previously had optional life coverage at four times their basic amount could elect to purchase an amount equal to two time their basic coverage.

Other optional insurance choices are available through payroll deduction. For further information and informational brochures, contact the applicable Human Resources Office.