SECTION 6.35  LIFE INSURANCE

Last Update:  12/10

 

 

The State’s group life insurance is administered by The Hartford (Hartford ).  $20,000 of BASIC term insurance is provided to employees at the State’s expense.  Up to $100,000 ($30,000 for SPOC; $40,000 for UE/IUP) of SUPPLEMENTAL insurance may be purchased in $5,000 increments at the employee’s expense.  Both BASIC and SUPPLEMENTAL insurance include an equivalent amount of accidental death and dismemberment coverage.  The amounts of BASIC and SUPPLEMENTAL coverage available gradually reduce after age 65.

 

Supplemental insurance is not subject to underwriting if an enrollment application is signed within 30 days of full-time employment.  No changes (increases or decreases) to life insurance coverage can be made until the next enrollment and change period, unless the employee has a Qualified Life Event. Any supplemental insurance coverage that is not elected during the first 30 days of full time employment is subject to medical underwriting.  (Underwriting is the process by which the carrier determines if they will accept an application for life insurance.  The employee must complete an “Evidence of Insurability” form and send it to the carrier, as well as a “Supplemental Life Application” which goes to the Iowa Department of Administrative Services – Human Resources Enterprise (DAS-HRE).  All life insurance forms are to be obtained from the department’s Personnel Assistant.  Premiums for SUPPLEMENTAL insurance are dependent upon the employee’s age and the rates currently in effect.

 

Eligibility

 

All active full-time employees with probationary or permanent status who are scheduled to work 30 or more hours per week are eligible for life insurance.

 

Enrollment and Beneficiary Designation

 

New employees should complete an enrollment form and return it to their department’s Personnel Assistant.  If the employee does not complete an enrollment form, they are still enrolled for basic life coverage, but there will be no beneficiary designation on file.  Employees with existing coverage may designate a new beneficiary at any time by completing a “Beneficiary Designation” form.

 

Effective Date of Insurance

 

BASIC insurance is effective the first day of the month following 30 calendar days of continuous employment.  If the first day of employment is the first working day of the month, the insurance is effective the first day of the following month.  SUPPLEMENTAL insurance is effective the first of the month following underwriting approval from the carrier.

 

Termination, Conversion, and Portability

 

Termination of insurance occurs the last day of the month in which the employee terminates employment or ceases active work, unless the employee stops working due to illness, injury or family medical leave.

 

A 31-day “conversion period” follows the termination of life insurance.  Insurance continues without premium payment during this time.  This allows the employee the option of porting or converting the insurance to an individual whole life policy with the carrier.  The life insurance continuation form will be supplied by the department’s Personnel Assistant upon termination of employment.

 

Waiver of Premium for Long-Term Disability (LTD)

 

Supplemental life insurance premium payments must continue during the qualifying period for LTD.  If an employee becomes disabled and begins to receive group LTD benefits prior to the age of 60, the life insurance will continue and premiums will be waived as long as the employee remains disabled.

 

Claims Filing

 

Upon the death of an eligible employee, the beneficiary must complete a beneficiary statement and send a certified copy of the death certificate to the department’s Personnel Assistant.  The Personnel Assistant will complete and process the claim form and forward to DAS-HRE for processing.

 

For further information, contact your department’s Personnel Assistant.