New Life Insurance Options and a One-Time Opportunity

We are pleased to announce that the University has selected MetLife as the provider for our Group life insurance benefits effective July 1, 2012.  The University has also contracted with MetLife to administer Optional Life insurance, including employee options greater than two times base annual salary (Basic Life) and Optional dependent life insurance.  With this change, you will continue to have University-paid Basic Life insurance, plus (if you so choose) separate employee-paid Optional Life insurance coverage.  The University and MetLife are now offering benefits-eligible employees the opportunity to enroll in Optional Life coverage with more options and fewer health questions.
 
Open Enrollment
The University provides Basic term life insurance to benefits-eligible full and part-time employees.  Basic Life coverage, up to two times salary, will continue to be administered through the University's flexible benefits program; premiums will be deducted from the employee's pay on a pre-tax basis and off-set by the University's contribution (Flex Credit-UDollars).  Effective July 1, 2012, individuals may choose one of three University-paid Basic Life options: $10,000; $50,000; or two times base annual salary, up to a maximum of $1,000,000.  The $100,000 option will no longer be offered.  Individuals currently enrolled for coverage at the $100,000 level will be defaulted to $50,000 effective July 1, 2012 - unless they make a specific life insurance election during open enrollment.  In addition, individuals currently enrolled in the four times salary option will be defaulted into two times base annual salary of Basic Life insurance administered by the University and two times base annual salary of Optional Life insurance administered by MetLife, also effective July 1, 2012.  Life insurance amounts that were previously capped will become two times base annual salary of Basic Life insurance.  Life insurance in multiples greater than two times base annual salary will be automatically transferred to MetLife as Optional Life insurance. 
 
Special One-Time Opportunity
Benefits-eligible full and part-time employees will also be able to purchase additional Optional term life insurance¹.  Premiums for Optional Life insurance will be deducted from an employee's pay on an after-tax basis.  During the 2012 Open Enrollment ONLY, individuals can enroll for or increase coverage up to the lesser of five times base annual salary or $500,000 - without any medical questions.  Optional Life insurance includes flexible coverage options for employees, their spouse/civil union spouse and/or child(ren) up to age 26.  After this one-time open enrollment, a Statement of Health will be required if enrolling for Optional Life insurance for the first time or whenever increasing Optional Life insurance coverage outside of an annual open enrollment. MetLife will contact benefits-eligible employees through a home mailing.  Watch for your enrollment kit in the mail. Enrollment in Optional employee life insurance includes Will Preparation and Estate Resolution Services at no additional cost.
 
Life Insurance Options (choose from the following):

Employee
Basic Life
(administered through UD)
$10,000; $50,000; or two times base annual salary
The University contributes pre-tax dollars up to two times base annual salary.
Employee
Optional Life
(administered by MetLife)
One to five times base annual salary, up to a maximum of the lesser of five times salary or $1,500,000
The maximum amount of Optional Life coverage, combined with Basic Life coverage, is $1,500,000.
Spouse / Civil Union Spouse
(administered by MetLife)
$10,000 to $100,000 in $10,000 increments ($5,000 and $15,000 options are no longer offered.)
Existing spouse/civil union spouse coverage at $5,000 will become $10,000; $15,000 will become $20,000.
Children up to age 26
(administered by MetLife)
$5,000 or $10,000
Existing child coverage of $2,000 or $4,000 will become $5,000. 
Existing child coverage of $6,000 or $8,000 will become $10,000.
Premiums for Optional Life insurance will be deducted from your pay on an after-tax basis.

 
Beneficiary Designation
During open enrollment, MetLife will ask you to complete new beneficiary designations. These designations will replace any currently on file with UD.  Having your beneficiary designations on file with MetLife for your Group life insurance ensures that benefits are paid in accordance with your wishes.  If there is no beneficiary designation on record with MetLife, life insurance proceeds are paid according to the terms of the Group certificate, which may not correspond with your wishes.  Please note: The beneficiary for dependent coverage will always be the employee.



¹Employees must complete a Statement of Health form if increasing or enrolling for coverage greater than the lesser of five times base annual salary or $500,000.  A Statement of Health will also be required for a spouse/civil union spouse, if increasing or enrolling for coverage greater than $30,000.  If an employee and spouse/civil union spouse both work at the University, dependent children are not permitted to be insured by both parents, and no one is permitted to be covered as both an employee and as a dependent.