September 25, 2020  
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Basic Life Insurance

You have access to Basic Life Insurance products that provide a wide range of innovative, flexible solutions to meet the needs of each Plan Member. This low-cost coverage helps Plan Members plan for the financial security of their beneficiaries and manage the economic consequences of an unexpected loss.

Common Basic Life Insurance plan designs include:

  1. Life Insurance based on a multiple of salary
  2. Life Insurance based on a flat amount
  3. Life Insurance based on Plan Member class

A specific plan can be designed to meet the requirements of each participating group.

Some of the highlights of Basic Life Insurance plans are:

  • Custom tailored plans available with generous guaranteed issue amounts
  • Coverage can be converted to an individual Life Insurance policy (regardless of health condition) if a Plan Member terminates his or her relationship with the Plan Sponsor

Optional Life Insurance

Each Plan Member may have different life insurance needs above the amount offered for Basic Life Insurance. Optional Life Insurance allows a Plan Member to purchase additional life insurance through payroll deductions. The cost of this coverage is considerably less than to purchase individual insurance outside of a group plan. Medical evidence of insurability is required for this benefit.

Optional Life Insurance is available with the following plan features:

  • Coverage can be purchased for both the Plan Member and/or their spouse (if applicable)
  • Coverage is available in units of $10,000 up to a maximum of $250,000
  • There are no minimum participation requirements, which is a valuable feature if only a few Plan Members wish to purchase the additional coverage
  • If coverage is transferred from an existing group plan, all coverage levels will be matched with no medical requirements. Proof of coverage with previous insurer will be required

Dependent Life Insurance

While Basic and Optional Life Insurance cover Plan Members, the loss of a spouse or child can also result in unexpected expenses or financial burden. Dependent Group Life Insurance is an affordable benefit option that can provide the financial assistance Plan Members need to help them through this difficult time.

  • Coverage is available up to $10,000 for the spouse and $5,000 for each child
  • Coverage can be converted for a spouse if Plan Member leaves the organization

Insurance Rates

Rates for the Basic Life Insurance and Dependent Life Insurance are based on the specific demographic features of each insured group.

The volume purchasing arrangement available to you allows for very competitive Life Insurance rates.

Rates for Optional Life Insurance are based on the age and smoking status of the Plan Member and/or spouse. Each rate represents the monthly cost to purchase $10,000 of optional coverage:

Age Smoker Non-Smoker
Under age 35 $0.90 $0.60
35-39 $1.20 $0.70
40-44 $2.10 $1.20
45-49 $3.60 $1.90
50-54 $5.70 $3.00
55-59 $9.20 $5.50
60-64 $12.80 $7.60

For example, the cost for a 38 year old non-smoking Plan Member to purchase $50,000 of Optional Life Insurance would be $50,000 X $.70 / $10,000 = $3.50 per month.

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If you have any further questions, please contact us; we'll be glad to help you.

Last updated on:  Tuesday, May 29, 2012  Page: 

This information is not intended for use without professional advice. While we have attempted to make this site as accurate as possible, it is only a summary. For more information, see our disclaimer.

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