307 Life Insurance
Group term life insurance coverage is available to each regular employee scheduled to work 20 or more hours each week. The following summaries cover only the principal features of the plans. The complete terms are contained in the contracts of insurance. For additional information, or for brochures or application forms, please contact the Benefits Office.
Eligible employees participate without payment of premiums in a non-contributory group term life insurance plan. The face value of the policy is $5,000 for managerial and professional staff. The policy goes into effect on the first of the month following completion of three months of employment. Employees must indicate their choice of beneficiary on forms available at the Benefits Office. Insurance coverage ceases at the end of the month following the month in which employment terminates. However, in the event of an involuntary layoff, coverage will extend through the month following any month in which there is a continuation of salary.
The cost of this insurance is borne largely by the participants except that the first $5,000 coverage is provided free to managerial and professional participants in lieu of the coverage described in 307.1 above. Premiums are determined according to a schedule based on the individual's age and the amount of insurance purchased. Employees have the choice of coverage, including the free $5,000 coverage, equal to one, two, three, or four times base annual salary to a maximum of $200,000 or, with evidence of insurability, to a higher amount in accordance with the terms of policy. Employees currently eligible for an insurance amount in excess of $50,000 may instead elect $50,000. Coverage may be reduced or dropped at any time but may be increased only upon proof of insurability.
Eligible new employees must apply for coverage within the first 60 calendar days of employment. Employees who do not fulfill this requirement may be asked to submit proof of insurability.
Contributory life insurance becomes effective for eligible employees:
- for those who apply within the 60 calendar days of employment,
- on the day the Benefits Office receives the completed application. for those who submit proof of insurability, on the day the insurance company approves the application.
For conversion opportunities,
- at retirement, see Section 313.3a
- on resignation or discharge, see Section 317
- at layoff, see Section 107.4d.