BASIC TERM LIFE & BASIC ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE
View the Basic Term, Basic Accident, Optional Special Accident Handbook
If an employee or dependent is enrolled in health coverage, they automatically have basic life insurance coverage underwritten by Fort Dearborn Life Insurance Company of Chicago, Illinois. This coverage is part of the health and life package. The state provides $20,000 of basic term life and $40,000 of basic special accident coverage for those employees who elect health coverage, earn less than $15,000 annually and are under age 65. The amount of coverage increases as the employee's salary increases, with premiums for coverage above $20,000/$40,000 deducted from the employee's paycheck. The maximum amount of coverage is $50,000 for term life and $100,000 for accidental death and dismemberment. The face amount of coverage declines at ages above 65. Eligible dependents (spouse and children) are covered for $3,000 of basic dependent term life coverage. Dependents (spouse and children) are eligible for basic special accident insurance, with the amounts of coverage based on salary and family composition.
Effective January 1, 2008 employees that are eligible for health coverage but are NOT currently enrolled will now be provided with the Basic Term Life and Basic Special Accident Coverage. The benefit amount will be $20,000 of Basic Term Life and $40,000 of Basic Special Accident coverage. There is no cost to the individual; however, unlike the coverage for employees enrolled in a health plan, this benefit amount WILL NOT increase as the employee’s salary increases. Additionally, the face amount of coverage declines at age 65 and over.
Eligible employees should receive a notice and form, to designate a beneficiary, from the State mailed to the home address. The beneficiary selection form must be returned to UTC Office of Human Resources, 207 Race Hall, Department 3603. Please include your personnel number on the top right corner of the form. (The personnel number is located beneath your name on your payroll advice.)
Continuation of Insurance upon Termination
Retiree and COBRA participants cannot continue life insurance through the state after termination of employment; however, optional term and optional universal life coverage may be continued on a direct pay basis to the insurance company under certain terms and conditions. For the basic term life coverage you will be given an opportunity to exercise a conversion option. This coverage will not be the same as that provided to you as an employee. The necessary paperwork will automatically be sent to you at your home address 4 - 6 weeks after your coverage ends. Application must be made directly to the insurance company.
