Optional Life Insurance
What is it?
The optional group term life insurance program gives you the opportunity to purchase additional insurance at favorable group rates for yourself and your family.
Optional group life insurance is term insurance. Term insurance generally provides the largest immediate death protection for your premium dollar. Term insurance is generally the least expensive and least complicated type of life insurance. It provides insurance protection at a low cost for a specified period of time and may be portable.
Who is eligible?
Full-time faculty, full-time classified staff and part-time classified staff.
Why do I need it?
Even if you have life insurance, keep in mind that life changes and, as it changes, so do your needs for protection. Your life insurance needs should be reviewed every few years. The need for income may continue after your death for those who were financially dependent upon you. Consequently, your need for life insurance and the amount you choose will depend upon your personal and financial circumstances. If any of the following statements apply to you, you probably do need to consider an optional life insurance policy.
- You are recently married or divorced
- A child or grandchild has been born or adopted
- Your health or your spouse's health has deteriorated
- A loved one will require assistance or long-term care
- You have recently purchased a new home
- Your children or grandchildren are about to enter school or college
What is it as Mason?
At Mason we recognize the importance of providing for your dependents. We realize that tailoring life insurance to fit your needs is like finding a place to live. You need to find a home that is the right size for you and your family. Rather than a once-size-fits-all approach, Mason offers optional life insurance through two different vendors -- Minnesota Life and Lincoln Financial -- so you can pick the plan that best suits your needs. And you can pay your portion of the premiums through payroll deduction, which will save you money as it is deducted pre-tax through premium conversion.
Amount of Coverage
When you enroll in the Optional Group Life Insurance Program with either Minnesota Life or Lincoln Financial, you may insure yourself, your spouse and your children. The amount of coverage your family receives corresponds with the option you select for yourself.
|Option||Insurance Amount||Insurance Amount||Insurance Amount|
|1||1 X Salary||1/2 X Salary||$10,000|
|2||2 X Salary||1 X Salary||$10,000|
|3||3 X Salary||1.5 X Salary||$20,000|
|4||4 X Salary||2 X Salary||$30,000|
You: In order to receive guaranteed issue, you have 31 days from the date of hire to apply for Optional Group Term Life Insurance. Guaranteed issue means that you will receive coverage without proof of insurability for any option you select that does not exceed $375,000. If you choose an option that provides coverage of $375,000 or more, you will be required to submit a Group Life Insurance Evidence of Insurability form to be reviewed by the vendor. Maximum acmount of coverage is $750,000.
Your Spouse: Your spouse's coverage is guaranteed issue for Option 1. (Half of your salary) if you apply within 31 days of hire. If you select option 2,3, or 4, your spouse will be required to furnish evidence of insurability for Minnesota Life to approve. If the application is not approved, your spouse will continue to be insured for the amount provided under option 1.
Your Children: Your children receive coverage corresponding to the option you select, provided you apply within 31 days of their becoming eligible to be insured. If you apply within that time period, the coverage does not require proof of insurability.
Additional information can be found at VRS.
Lincoln FinancialYou may also choose to have optional term life insurance through Lincoln Financial. You, your spouse and dependent children who are age 14 days to 21 years are eligible.
You: You may purchase coverage in units of $10,000 up to $500,000 (not to exceed 5 times your annual salary)
Your spouse: Your spouse may purchase coverage in units of $10,000 up to $250,000. Spouse amount may not exceed 5 times employee's annual salary.
Your children: Coverage for eligible children is available in units of $2,500 up to a total of $5,000. Coverage for your dependent children does not require answering medical questions.
For more information on both voluntary term life insurance plans -- Minnesota Life or Lincoln Financial, or for an application form, please contact the Human Resources & Payroll Office at 703.993.2600 and ask to speak to Benefits.