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Retirees Life Insurance Coverage

Summary of Retiree Life Insurance Coverage

When an employee terminates from the university, participation in the Basic and Supplemental Life Insurance plans ends on the day on which the individual terminates. Dependent coverage terminates at the same time. The university provides a Retiree Life Insurance benefit to terminated employees with IU Retiree status. There is no dependent coverage provided as part of the Retiree Life Insurance benefit.

The amount of Retiree Basic Life Insurance provided by the university is $6,000 for those terminating with IU Retiree status January 1, 2003, or after.

For those retiring prior to January 1, 2003, the Amount of Basic Life Insurance will be determined by your Annual Wage, just prior to your retirement:

Eligibility

All terminated employees with IU Retiree status are automatically covered by the Retiree Life Insurance benefit. This insurance is paid for by the university.

Conversion of Life Insurance

Coverage for the difference between the amount of active Basic Life Insurance coverage and the amount of the Retiree benefit may be converted to an individual life insurance policy without providing proof of good health. Supplemental Life Insurance may also be converted up to the amount of coverage held by the Retiree at the time of termination.

Prior to termination the amount of coverage is reduced at age 65. At the time these reductions take place, the employee has the right to convert the amount of coverage that was lost due to this age-based reduction.

The employee must make application for an individual policy and pay the first premium for that policy within 31 days after the date the employee's insurance ceases under the IU-sponsored Group Life Insurance Policy.

The underwriter makes every effort to provide a conversion offer to employees upon discontinuation of IU-sponsored Group Life Insurance coverage; however, it is the employee's responsibility to covert their policy in a timely manner whether or not a conversion offer is extended at the time of termination.

If the employee dies during the 31 days allowed for conversion, the underwriter will pay the amount of Life Insurance that could have been converted.

Retiree coverage does not include coverage for dependents. Dependents may purchase an individual policy when coverage ends due to the employee's coverage ceasing or the when the dependent no longer meets the definition of a dependent for coverage under the employee's Basic Life Insurance. The amount of the individual policy is limited to no more than the amount at the time coverage ceased. The dependent must submit an application and pay the initial premium within 31 days of the date on which coverage ends.

Things you must do…

• Provide timely notice to the university of a change is status, such as divorce, legal separation, or when a child loses eligibility (e.g., due to age).

• To convert to an individual policy, return the conversion offer application to the address listed on the letter you will receive from the policy underwriter. If a conversion offer is not received, you can request the appropriate form by contacting University Human Resource Services at (812) 855-2007. In either case the form must be submitted to the policy underwriter within 31 days after the date on which group coverage terminates.

• Send the initial premium with the conversion form within 31 days after the date that group coverage terminates.

• Dependents must make a separate application to convert to a personal policy. The application must be accompanied by the initial premium payment and submitted within 31 days after the date that group coverage terminates.

• Pay subsequent premium payments on time (rates are calculated on an annual basis, but semi-annual, quarterly, or other payment options may be available).

• Notify the policy underwriter if the need arises to change a beneficiary.

• Notify the policy underwriter of address and name changes.
  

Additional Questions?

For questions about retiree status contact the University Human Resource Services Benefits Specialist ( or 812-856-4459).

Benefit plan information on these web pages is in a summary format and is not intended to replace actual plan documents. Indiana University reserves the right to amend or terminate all or any part of any benefit plan.