Group Term Life, AD&D

 

 
 


 Plan Highlights

  • Provides a death benefit to the designated beneficiary -- One times base  salary, up to a maximum of $300,000*
  • At age 65, the death benefit is reduced by 30 percent
  • At age 70, the death benefit is reduced to $10,000
  • Provides an Accidental Death and Dismemberment (AD&D) benefit equal to the amount of Basic Group Life Insurance. The AD&D benefit also includes an additional seat belt and repatriation benefit
  • Continues to pay life insurance premiums if a covered employee becomes totally disabled before age 60
  • Allows covered employees to apply for conversion or portability of their life insurance
  • Offers an accelerated death benefit, which allows terminally ill employees the opportunity to collect all or part of their life insurance prior to death 

Basic Life Insurance

 

 
Basic Life Insurance provides protection for your survivors if you die while you are covered under the plan.  As a full-time employee, you are eligible for basic life insurance coverage.  An employee ‘s life insurance coverage begins on the first day of the month following the date you begin work.  The amount of coverage is based on your salary. The University provides you with an amount of term life insurance equal to one times your base salary, rounded to the next higher $1,000, if it is not already an exact multiple of $1,000. The University pays the premium for your Basic Life coverage.

 

 

Updating Beneficiary Information

  • Changes to beneficiary designations can be made at anytime.
  • Benefits will be paid to the most current beneficiary listed at the time of death.
  • Benefits are paid to your beneficiary in the event of your death.  If you have no beneficiary designation on file at the time of your death, benefits will be payable to your estate.

Benefits are paid to your beneficiary in the event of your death from any cause.  If you have no beneficiary designation on file at the time of your death, benefits will be payable to your estate.

 

Accelerated or Living Benefit  

Vincennes University’s term life insurance plan offers an accelerated benefit (sometimes called a living benefit) that allows terminally-ill people to tap into their life insurance proceeds while they are still living. Often the money is used to handle out-of-pocket medical expenses, but it may be used for any purpose.  To qualify for the accelerated benefit, you must furnish proof to One America that your life expectancy is 12 months or less. A doctor's certification will be required.  
The accelerated benefit will not be more than 75% of your member benefit. Any amount received as an accelerated benefit is deducted from benefits paid to your beneficiary when you die.  

*For former employees who meet the requirements for Retiree Status with Vincennes University, the Basic Group Life coverage continues.  Maximums and applicable age reductions may differ by class.  

 

The accelerated benefit will not be more than 75% of your member benefit. Any amount received as an accelerated benefit is deducted from benefits paid to your beneficiary when you die.  

  • For employees who meet the requirements for Retiree Status with Vincennes University, the Basic Group Life coverage continues with the applicable age reductions.     

 

Accidental Death and Dismemberment  

Full-time, benefits-eligible employees are covered by the University’s Accidental Death and Dismemberment Policy on the first day of the month following the date you begin work.  The University pays the premium for this protection. If your death is accidental, or if you suffer certain kinds of dismemberment or loss of sight, you or your beneficiary will be entitled to a benefit. Benefits are paid according to the schedule below. For a more detailed explanation of the benefits under this policy, please consult the Vincennes University Group Member Life Insurance Certificate or contact Human Resources.

Benefits will not be paid for losses resulting from disease, medical or surgical treatment for disease, infections, suicide or attempted suicide, mental or physical infirmity, acts of war, or attempted commission or commission of a felony.

On the date you reach age 65, the coverage amounts through Basic Life, Optional Life, and Accidental Death and Dismemberment insurance for which you are enrolled are reduced to 70% of the original coverage amount. On the date you reach age 70, these benefits are reduced to $10,000.

 

Supplemental Life


Supplemental Life Insurance is an elective option available for you to provide additional insurance for your survivors up to a benefit amount equal to your basic life amount.  This coverage is also called optional insurance coverage.
 

Supplemental Life insurance is an elected benefit for which employees pay 60% of the premium.

  • The cost for supplemental coverage is automatically deducted from the employee's paycheck. 
  • The employee will be informed of the premium amount at the time of enrollment. 

 

Eligibility

 

  • All employees who are covered under Basic Group Life Insurance are eligible to elect supplemental coverage.
  • Employees are eligible on the day they became part of an eligible group. If you elect coverage, your life insurance coverage begins on the first day of the month following the date you begin work.

Initiation of Coverage

  • Must be made within 30 days after becoming an eligible employee by submitting the appropriate paperwork to Human Resources.
  • If an election for supplemental coverage is made after this initial 30 day period, the employee may apply by completing an Evidence of Insurability Statement.