1. Who is eligible to enroll in Optional Term Life Insurance?
Any employee who is in the covered classes: "state employee", "employee of a local board of education", "local health department employee", "elected state officials" and "quasi-agency employees." For definitions of classes, see your Certification Booklet.
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2. How much protection does Optional Term Life Insurance provide?
Four levels of protection are available. You can choose the plan that best suits your particular needs.
Plan 1 $5,000
Plan 2 $10,000
Plan 3 One times annual salary*
Part 4 Two times annual salary*
*Under Plans 3 and 4, insurance amounts will be the annual salary at the time of enrollment and will be rounded to the nearer multiple of $1,000.
Evidence of insurability will be required for insurance over $150,000.
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3. What is covered under Optional Term Life Insurance?
Benefits will be paid if you die from any cause while you are covered under Optional Life Insurance. These benefits are in addition to the amount of Basic Life Insurance.
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4. How do I enroll in Optional Term Life Insurance?
A new employee can select optional insurance within 30 days from their hire date by completing an enrollment. If an employee is a transfer or wanting to pick up additional coverage without a qualifying event, they must complete an enrollment form selecting the optional plan and complete an evidence of insurability statement.
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5. How much will Optional Term Life Insurance cost me?
The monthly cost is based on your age and the plan you select. Your cost is based on the following age brackets:
| AGE |
RATE PER $1,000 OF LIFE INSURANCE |
| Under age 40 |
.25 |
| 40 - 59 |
.57 |
| 60 and over |
.90 |
Premium rates are current as of July 1, 2005.
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6. Who is the beneficiary for Optional Term Life Insurance death benefits?
The employee designates the beneficiary on their Optional Life Insurance. Any amount of insurance for which there is no beneficiary designated will be paid to the first surviving class of the following classes: (a) surviving spouse, (b) surviving children, (c) surviving parents, (d) surviving brothers and sisters, (e) estate.
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7. Is there any Accidental Death and Dismemberment Benefit?
Yes. If the loss of life is caused by an accident, the Accidental Death Benefit is payable to your beneficiary in an amount equal to both your Basic and Optional Life Insurance. Please refer to your Certificate booklet for further details.
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8. If my salary increases and I have Optional Plan 3 or Plan 4, will my coverage automatically increase?
No. Within 30 days of a salary increase, you must complete an application to change your coverage. Increasing your amount of insurance will also increase your premium.
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9. Can I change the Optional Plan I have selected, or enroll in any Optional Plan at a later date (outside of open enrollment)?
Yes. If you change from one Optional Plan to another Optional Plan, and the change provides you with a higher amount of insurance, you will be required to furnish satisfactory evidence of insurability to the insurance carrier. The new amount will become effective when the evidence is approved.
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10. Will my rates for Optional Term Life Insurance ever change?
Yes. Your rates will increase at age 40 and once again at age 60. Your premium will also change with a volume increase.
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11. What are the exclusions to the Accidental Death and Dismemberment coverage?
No AD&D Insurance benefit is payable if the accident or loss is caused or contributed to by any of the following:
- Suicide or attempted suicide, while sane or insane.
- Intentionally self-inflicted Injuries, or any attempt to inflict such Injuries.
- Sickness, whether the Loss results directly or indirectly from the Sickness.
- Medical or surgical treatment of Sickness, whether the Loss results directly or indirectly from the treatment.
- Any infection. But, this does not include: – a pyogenic infection resulting from an accidental cut or wound; or – a bacterial infection resulting from accidental ingestion of a contaminated substance.
- Taking part in any insurrection.
- War, or any act of war. “War" means declared or undeclared war and includes resistance to armed aggression.
- An accident that occurs while the person is serving on full-time active duty for more than 30 days in any armed forces. But this does not include Reserve or National Guard active duty for training.
- Commission of or attempt to commit a felony.
- Being intoxicated or under the influence of any narcotic or any hallucinogenic unless administered on the advice of a Doctor.
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12. Is there a cost associated with the Accidental Death & Dismemberment Benefit?
No. The Accidental Death & Dismemberment Benefit is included as part of the Basic Life Insurance and as part of the Optional Life Insurance coverage, each at no additional cost to you.
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13. If I should leave my job, is it possible for me to continue my life insurance coverage?
Yes. Your insurance will terminate on the first day of the second month following the month your employment ends. However, in the 31 days following the termination of your coverage you can convert your Basic Life Insurance, Optional Life Insurance and Dependent Group Life Insurance coverage to an individual policy without having to furnish evidence of insurability. If you die during this 31 day period, this life insurance will be paid whether or not you have applied for an individual policy.
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14. I am interested in providing protection for my family. How much protection does the Dependent Term Life Insurance plan provide?
It depends on which plan you choose for your family. You have the option of selecting coverage from one of the following plans:
| |
SPOUSE |
CHILDREN |
| |
|
0 TO 6 MTHS |
6 MTHS TO 18 YRS |
| *Plan A |
$10,000 |
$2,500 |
$5,000 |
| *Plan B |
$5,000 |
$1,500 |
$3,000 |
| Plan C |
$5,000 |
-------- |
-------- |
| Plan D |
$10,000 |
-------- |
-------- |
| *Plan E |
-------- |
$2,500 |
$5,000 |
*6 months to 18 years of age, or 18 and older if attending an educational institution and relying on you for financial support.
Spouse means a person to whom you are legally married.
Premium rates are current as of July 1, 2005.
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15. My spouse and I are both employees, can each of us cover each other as a dependent? Can each of us cover our children?
Yes, each of you may enroll for Dependent Term Life Insurance.
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16. What is the cost for the Dependent Term Life Insurance?
The monthly contributions for the Dependent Term Life Insurance are:
Plan A $10.90
Plan B $5.90
Plan C $2.50
Plan D $8.70
Plan E $3.60
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17. Who can be covered under Dependent Term Life Insurance?
Eligible dependents include your spouse (legally married) and unmarried dependent children under age 18. Dependent children 18 and older can be covered providing they attend an educational institution and rely on you for financial support. Dependent children cannot be covered if they are on active duty with the armed forces. Dependent children include: children by birth, adopted children, step children, foster children or other children that depend upon the employee for support and live with the employee in a regular parent-child relationship.
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18. Who is the beneficiary for the Dependent Term Life Insurance?
Benefits will be paid to the employee, when a covered dependent dies.
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19. Must I notify the Group Life Insurance Administration if I have a newborn?
If you are enrolled in Plans A, B or E your newborn is automatically covered.
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20. Can I enroll if I have a serious health condition?
Within 30 days of hire, you can enroll without providing evidence of insurability. After 30 days, an evidence of insurability statement must be completed and approved by the carrier.
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21. I do not have dependents now. Can I enroll when I acquire a dependent?
Yes. You can enroll within 30 days of first acquiring a dependent.
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22. If I die, can my spouse continue his/her coverage?
A dependent can convert to an individual policy, should your insurance end due to a death or termination of employment. A spouse in a divorce situation and a dependent child who reaches the limiting age may also convert.
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23. When does the Optional Term Life Insurance and/or Dependent Term Life Insurance start?
The additional insurance becomes effective on the first day of the second month from your employment date. Evidence of insurability will be required if you enroll later than 30 days from the date of your employment. If evidence of insurability is required, coverage will be effective on the first day of the month following the date the insurance carrier accepts your evidence of insurability.
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24. When does the Dependent Term Life Insurance end?
The Dependent Insurance will end on (1) on the first day of the second month following the month of termination of employment, (2) if the plan is discontinued, (3) if you stop making contributions, (4) if the dependent dies, or (5) if the dependent is no longer eligible, or (6) the date the employee is no longer legally married (divorced).
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25. Are there any cash values under the Optional Term Life Insurance and/or Dependent Term Life Insurance?
No, this is strictly term insurance. Term insurance is life insurance that remains in force only while the contribution is being paid. There is no cash value or paid-up value.
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26. When does the Optional Term Life Insurance end?
The Optional Term Life Insurance will end (1) on the first day of the second month following the month of termination of employment, (2) if the plan is discontinued, (3) if you stop making contributions, or (4) if you are no longer an eligible employee.
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27. If I decide I want less coverage, can I decrease my Optional Term Life Insurance and Dependent Term Life Insurance?
Yes. Simply complete an application requesting a change to a Plan with less coverage. Remember, if you decide to increase your coverage later, you must provide evidence of insurability.
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28. How can I change my beneficiary?
Request a Beneficiary Designation form from your insurance coordinator or the Group Life Insurance Branch. Complete and date the form and return it to your insurance coordinator.
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29. Will I receive a certificate explaining my Optional Term Life Insurance and/or Dependent Term Life Insurance?
Yes. You will receive a certificate of coverage and a booklet explaining coverages.
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30. Does the insurance pay a benefit when a death is due to suicide?
Yes. But the Accidental Death Benefit that comes with Basic and Optional Insurance excludes payment when loss of life is due to a suicide.
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31. Can I cancel my Optional Term Life Insurance and Dependent Term Life Insurance at any time?
Yes. Complete an application, checking your intent to terminate coverage and return the completed form to your insurance coordinator.
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32. Can I keep my coverage if I transfer and have no break in service?
Yes. When you transfer from school board to school board, state agency to state agency or health department to health department, you keep the same Optional Life Insurance and Dependent Group Life. If you decide to enroll in or change your coverage, you would have to provide evidence of insurability to the insurance carrier and have approval before your coverage begins.
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33. How are benefits obtained when there is a claim?
Contact the employee's insurance coordinator to complete the proof of death form. After completing the death claim, submit it with the required forms to the Group Life Insurance Branch. Any premiums that have been paid after the coverage is terminated will be refunded to the employee or the employee's estate.
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34. If I have additional questions, how can I get information?
You can contact your insurance coordinator or you can call the Group Life Insurance Branch at (502) 564-4774 or (800) 267-8352.
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35. Can I have two life insurance policies if I work for two agencies as a full-time employee eligible for benefits covered under the Commonwealth policy?
No. You will only be eligible for one policy under the Commonwealth plan.
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36. Other Important Information
These materials may be available in alternate formats under the provisions of the Americans with Disabilities Act (ADA). Please ask your Insurance Coordinator.
This information is designed to answer some common questions about the Group Life and AD&D insurance coverage being offered. It is not intended to provide a detailed description of the coverage. If you become insured, a more detailed description of the insurance coverage will be available in a group insurance certificate provided to you. The controlling provisions of coverage are in the group insurance policy. This information and the group insurance certificate do not modify the group insurance policy or the insurance coverage in any way. The Basic Term Life, Optional Term Life, Dependent Term Life, Accidental Death & Dismemberment, coverages are issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102. The Booklet-Certificate contains all details, including any policy exclusions, limitations and restrictions, which may apply. Contract Series: 83500. Prudential Financial and the Rock logo are registered service marks of The Prudential Insurance Company of America and its affiliates.