Supplemental life insurance is available on an optional contributory basis.  This coverage provides added protection to your beneficiary in the event of your death from any cause while you are insured.  You must elect basic life insurance in order to elect this coverage.

In addition, you may purchase supplemental life insurance coverage for your spouse (up to age 70), and your eligible dependent children from 6 months to 19 years (up to age 24 years if a full-time student).  You may purchase $10,000 to $50,000 in increments of $10,000 for your spouse and $10,000 for each dependent child.

Evidence of Insurability is required for a spouse and/or eligible children if:

• you are enrolling for coverage after the 30 days of becoming eligible
• the dependent was hospitalized within 90 days prior to enrolling
• you are requesting more than $10,000 in coverage for your spouse.

Eligible dependent coverage ends when an active employee terminates employment.  It would also stop at retirement, when an individual goes on long-term disability, upon divorce, or when a dependent is no longer eligible.  Refer to “Conversion Privileges” at the end of this section if you would like to convert to an individual policy. 

 

Benefit Amounts
During Active Service – Before Age 65
If you are actively working and are under age 65, you can elect a supplemental life insurance amount equal to 1 to 5 times your annual Pay (rounded to the next higher $1,000 if not an even multiple of $1,000) up to a maximum of $500,000.

“Pay” is defined in the Glossary.

When your Pay increases enough to put you in a new insurance bracket, your insurance amount will automatically increase.  If your Pay decreases, your insurance will decrease if you request the change in writing, or if the Pay decrease is part of a general reduction.

During Active Service – At Age 65 and After
If you continue working after you reach age 65, your supplemental life insurance coverage in effect at age 65 will be reduced 10% a year until it reaches 50% of the amount in effect on your 65th birthday.  Any Pay increases you receive will not increase your insurance coverage.

The effective dates for the reductions are the same as those for reductions in your basic life insurance.

Your contributions for supplemental life insurance will not be reduced when your insurance is reduced.  This means that your cost per $1,000 in supplemental life insurance coverage will increase.

Your supplemental coverage can be converted to an individual policy.

 

During Disability
If you become Totally Disabled, as defined in the Glossary, during active service and before age 63, your supplemental life insurance will continue at the level in effect at the time your Total Disability began, for as long as you remain Totally Disabled, or until you reach age 65.  After you have been continuously disabled for 13 weeks, this coverage will continue providing you pay any required cost.  For hourly employees, coverage continues at no cost. If your Total Disability begins after your 63rd birthday, however, your insurance will continue for two years, but not beyond age 70.

At age 65, or at the expiration of the two-year period, if later, you may be eligible to continue a portion of your insurance amount, as described below.

 

During Retirement - At Any Age
Your supplemental life insurance coverage terminates unless you convert it to an individual policy or elect the portability option.  Refer to "Conversion Privileges” at the end of this section if you would like to convert to an individual policy, or see "Portability" if you would like to elect the portability option.

Living Benefit If you are diagnosed with a terminal illness, with six months or less to live, and have at least $10,000 of life insurance (basic and supplemental coverage combined), you may make a one-time request to receive a portion of your life insurance benefit before you die.  You must furnish satisfactory proof of your illness to the insurance company before any benefits can be paid. You may receive up to 50% of the amount of your basic and supplemental life insurance coverage, with a maximum living benefit of $250,000 of your basic life insurance coverage and $250,000 of your supplemental life insurance coverage.  Benefits will be paid in a lump sum. Living benefit payments may be taxable and may affect your eligibility for certain government benefits, such as Medicaid.  In addition, the amount of benefits payable to your beneficiary upon your death will be reduced by the amount of the living benefit that you receive. If you wish to apply for a living benefit, please contact the Benefit Plans Office for forms and instructions.

Payment of Benefits  Basic and Supplemental Life death proceeds are deposited into a Total Control Account (TCA) Money Market Option.  Interest is paid on the fund from the date of death. The beneficiary can choose among other long term settlement options at any time including: guaranteed interest certificates, (6 months – 7 years) annuity options, which provide a guaranteed income for life.