Participant Rights and Responsibilities Upon Transfer or Termination
Group Life Insurance Coverages
Basic Life Insurance. Indiana University provides Basic Life Insurance to eligible employees. The amount of coverage is two times the employee's budgeted base annual salary up to a maximum of $50,000 (1.3 times base annual salary at the age of 65). Dependent coverage is $3,000 for an eligible spouse and $1,000 for each eligible child. Indiana University pays the cost of this coverage.
Basic Accidental Death and Dismemberment (AD&D) Insurance. The university provides Basic AD&D Insurance to eligible employees in an amount equal to the employee's Basic Life benefit.
Supplemental Life Insurance. Employees who are eligible for Basic Life Insurance may purchase Supplemental Life Insurance. This insurance is generally equal to 1, 2, 3, or 4 times the employee’s budgeted base annual salary. The cost of Supplemental Life Insurance is deducted from the employee's paycheck.
At age 70, Supplemental Life Insurance amounts and maximums are reduced by 35 percent.
All full-time Academic and Staff employees are provided Basic Life Insurance. A dependent is a legal spouse, registered domestic partner, unmarried child through age 20, or age 24 if the child continues to be the employee's or employee's spouse's Federal income tax dependent.
Participation by the employee in both Basic and Supplemental Life Insurance ends on the date that the employee:
- terminates from the university; or
- ceases to be a member of the eligible class for coverage; or
- ceases to make any required contributions.
A dependent's coverage terminates:
- when a dependent becomes eligible for employee coverage; or
- when an individual ceases to meet the definition of a dependent; or
- when the employee’s coverage terminates.
Employees with IU Basic Life and their covered dependents and employees enrolled in Supplemental Life Insurance are allowed to apply for conversion or portability of their life insurance to an individual plan when employee coverage ends or reduces. No proof of insurability is required. In addition, those who terminate with IU Retiree status have a Retiree Life Insurance benefit through the university. This benefit is described in Section VI.
Employees must apply for conversion or portability and pay the required premium within 31 days after the group life insurance ends or reduces at age 70.
- Conversion ‒ IU group coverage can be converted to an individual whole life policy that has a fixed premium and accumulates a cash value.
- Portability ‒ IU group coverage can be transitioned to an individual term life plan. This type of plan is less expensive initially, but the premiums increase with age.
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 life insurance coverage ends under the IU-sponsored Group Life Insurance Policy.
The insurance 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 convert the 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.
NOTE: The combined amounts of insurance purchased under the conversion and portability provisions may not exceed the amount for which you or your Dependents were insured on the day before your employment terminates. You may also wish to contact an independent insurance agent to discuss other alternatives.
To be eligible to purchase insurance under the portability provision, you must meet the following requirements:
- You must have been continuously insured under your employer's Group Life Insurance plan for at least 12 consecutive months on the date your employment terminates.
- You must be able to perform with reasonable continuity the material duties of at least one gainful occupation for which you are reasonably fitted by education, training and experience on the date your employment terminates.
- You must be under age 65 on the date your employment terminates.
- If you do not buy Life Insurance for yourself, you may not purchase any other insurance coverage.
Summary of actions the participant must take to convert or buy portable Group Life Insurance:
- At the time your group life insurance ends, contact the policy underwriter, The Standard, to obtain details of your conversion and portability options.
- Respond to the insurance offer and application you receive from the policy underwriter by submitting the application to the address listed on the application. If an offer is not received from the policy underwriter, contact 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 application form within 31 days after the date that group coverage terminates.
- Pay subsequent premium payments on time.
- Notify the policy underwriter of beneficiary changes.
- Notify the policy underwriter of address and name changes.
To obtain additional requirements and eligibility information on conversion and portability of Group Life Insurance, contact the policy underwriter in the Continued Benefits department of Standard Insurance at 1-800-378-4668 or University Human Resource Services at 812-855-2007.