Thursday, January 10, 2013

District Life Insurance Explained


By: Tonya Williams
Employee Relations Specialist

Throughout the year I receive many inquiries regarding the District’s life insurance benefit.  Here is an overview of frequently asked questions that I receive.  This overview will help you understand the District’s life insurance benefit provided to you.

Q:        Who is eligible for District-paid life insurance?

A:        Each employee that works at least 3.25 hours per day receives a District-paid life insurance benefit.  The School District pays the full premium for a term life insurance policy covering only the employee.  The value of the coverage is the amount of the employee’s annual salary rounded up to the nearest thousand.  This coverage begins the first day of the seventh month of employment.

Q:        Is there a cash value for my life insurance?

A:        There is no cash value to your life insurance benefit.  This is a term life insurance policy, which provides coverage for a period of time.  If the insured dies during the term, the death benefit will be paid to the beneficiary.

Q:        Is there additional life insurance through the District that I can purchase?

A:        The District does provide a voluntary buy-up life insurance plan with face amounts up to five times your annual salary ($100,000 guaranteed issue).  Coverage is also available for a spouse and children.  Premium payments are taken as a deduction from your pay for this benefit.  This voluntary buy-up life insurance is only offered to new employees, and they must enroll within 30 days of their start date.  There is no open enrollment for this benefit; however, should this benefit be opened up for staff to enroll in, all staff will be notified.

Q:        What happens to my life insurance when I resign?

A:        If you resign from the District, you will be given the opportunity to convert your life insurance into an individual policy.  You will have 30 days from your resignation date to apply for a conversion.  The Employee Benefits Department will send you a letter explaining this process at the time of your resignation.

Q:        What happens to my life insurance when I retire?

A:        If the retiree, at the time of retirement, is covered by the District’s group life insurance plan, and meets the requirements of the group plan for continued coverage, the Board will pay the level of coverage in effect at the time of his/her retirement for the same time period as payment for the health insurance.

Q:        How do I change my beneficiaries?

A:        You can change your beneficiaries at any time, and you should do so whenever you have a change in your family.  You can find the Beneficiary Designation Form at the District website at http://www.janesville.k12.wi.us/Portals/1/hr/Beneficiary%20Designation%20Change.pdf.  If you need a hard copy of a Beneficiary Designation Form, please contact me in the Employee Benefits Department.

If you have any questions regarding your life insurance benefit, please contact Tonya Williams at 743-5021 or twilliams@janesville.k12.wi.us.

1 comment:

  1. Hi.Tonya Williams,
    Thanks for sharing this informative post with us.All the question and their answer is very clear to understand.
    Thanks
    Life Insurance

    ReplyDelete

Note: Only a member of this blog may post a comment.