Do I need to provide evidence of insurability to enroll in Optional Life coverage?
If you enroll in Optional Life after your first 60 days of employment, you will need to provide evidence of insurability (good health), unless you have a Change in Status. If you have a Change in Status, you may enroll in Optional Life coverage of one-half or one times pay without providing evidence of insurability, but you will need to provide evidence of insurability to enroll in higher levels of coverage.
How does the automatic Dependent Basic Life coverage work?
Employees and retirees who have Basic Life or Alternate Basic Life coverage automatically have $5,000 of life insurance coverage on all eligible dependent children. This benefit does not include spouses. You do not have to specifically enroll your children. They are automatically covered. The coverage cannot be waived.
What is the difference between Basic Life/Basic AD&D, Alternate Basic Life and Optional Life?
Basic Life/Basic AD&D is automatically provided to those who enroll in an A&M System health plan, and the employer contribution pays the premium. Those who do not take System health coverage and do not certify that they have other health coverage may buy Basic Life/Basic AD&D, but must pay for it themselves. Alternate Basic Life is available to employees and retirees who do not enroll in an A&M System health plan, but certify that they have other health coverage. Because they certify that they have other health coverage, they can use half of the employer contribution to buy other coverages, including Alternate Basic Life, which has a maximum coverage level of $50,000. Optional Life is available to all employees except those in Alternate Basic Life, but the employer contribution may not be used to pay the premiums. Those eligible for Alternate Basic Life may choose to buy either Optional Life or Alternate Basic Life, but not both.
If I increase my Optional Life coverage during Annual Enrollment, when is the increase effective?
After completing and submitting your evidence of good health application, the increase becomes effective on the first of the month following approval of your application or September 1, whichever is later.
Why set up an Alternate Basic Life plan if anyone can buy Optional Life?
When some employees are allowed to use state money to buy life insurance in a plan, then anyone who is in the same plan and has more than $50,000 in coverage must pay income tax on the cost of the coverage in excess of $50,000. To keep from increasing many employees’ tax bills, we must prohibit using the employer contribution to buy life insurance through the Optional Life plan. However, we want employees eligible for half the employer contribution to be able to buy up to $50,000 of life insurance with that money. That’s why we set up a separate plan just for them. To avoid any extra taxes for that group, we limited the amount of life insurance that could be purchased through Alternate Basic Life to $50,000.
How does the Living Access benefit work?
The Living Access benefit is designed to give you access to part of your Basic, Optional or Alternate Basic Life benefit if you have a terminal condition. Often those who are terminally ill need the extra money that can be provided by this benefit. To qualify for a Living Access benefit, you must be covered under Basic Life, Optional Life or Alternate Basic Life and a doctor must certify that you have less than 24 months to live. You can receive 50% of your total coverage amount. If your spouse and/or covered children have Dependent Life coverage, they are also eligible for the Living Access benefit.
If I sign up for Dependent Life, are all of my eligible dependents automatically covered?
No. You must list each dependent you wish to cover when you enroll. You must provide evidence of insurability (good health) to add a spouse, unless you enrolled him/her within 60 days of when you first became eligible for coverage or within 60 days of a Change in Status.
What is the portability provision in the life insurance program?
Under the portability provision, you may continue the same amount of Life coverage without providing evidence of good health. The premiums will be higher than those paid by active employees, but much lower than those for the conversion policy. Some provisions, such as the Living Access Benefit, that are available to active employees are not included in the portability program.
How do I change my beneficiaries?
You may change your beneficiaries at any time through Workday. When you change your beneficiary, your new beneficiary designations will supersede all previous designations.