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Basic Term Life and Basic Accidental Death & Dismemberment 

Administered by Fort Dearborn Life Insurance Company

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.

Employees that are eligible for health coverage but are NOT currently enrolled will 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.

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