LIFE INSURANCE
The life insurance plan provides term life insurance coverage (no cash value) that is payable in the event of an employee death, thus giving the family or beneficiary financial protection.
Eligibility
Faculty and Staff are eligible for group life insurance coverage if they are employed in a “Regular” position with an FTE of .5 or greater or employed in a “Temporary” position for more than 6 months with an FTE of .5 or greater.
Initial Enrollment
New or newly eligible employees must enroll for coverage within 31 days of the hire or eligibility date.
Enrollment after the initial 31-day period is limited to the annual NUFlex enrollment or when a Permitted Election Change Event occurs.
Life insurance premiums are based on the employee’s age and tobacco/nicotine use. In order to determine the life insurance premium, the employee must complete the Tobacco/Nicotine Designation which is located on the Benefits Enrollment Form. If the employee does not designate a tobacco/nicotine status, life insurance coverage will be based on the tobacco/nicotine premium.
Employees may elect coverage Options 2-4 without proof of insurability. Coverage Options 5-13 require proof of insurability.
Tobacco/Nicotine Status Designation
Employees should initially designate their tobacco/nicotine status by completing the Benefits Enrollment Form. The Benefits Change Form should be used to change a tobacco/nicotine designation as a result of a Permitted Election Change Event.
Assurity Life Insurance has the right to investigate each death claim. If there is evidence of tobacco or nicotine use after the employee responded “No”, (not used any form of tobacco or nicotine within the last 12 months) and/or any material misrepresentation made by the employee, including their smoking history, the employee’s life insurance benefit payment may be voided pursuant to the policy’s Incontestable Clause.
Effective Date of Coverage
Coverage is effective on the first day of the month following the employee's date of hire or eligibility. Coverage for employees hired on the first day of the month will be effective on the first day of the month. Coverage for employees hired on the first working day of the month will be effective on the actual date of hire (if first working day is January 5th, coverage will be effective January 5th).
Employees must be actively at work on the effective date of coverage.
Change in Status Guidelines
Employees may change their life insurance coverage and/or tobacco/nicotine designation during the calendar year when a Permitted Election Change Event occurs. Proof of insurability is required to increase coverage due to a Permitted Election Change Event.
Employees must make changes in coverage within 31 days of the Permitted Election Change Event.
Listed below are several Permitted Election Change Events that may allow an employee to initiate a midyear life insurance coverage change.
Change in legal marital status
Change in number of dependent children
Change in employment status or work schedule which results in a gain or loss of coverage eligibility
Change in coverage under spouse’s employers’ benefits plan, if substantial
Coverage Effective Date as a Result of a Permitted Election Change Event
Coverage changes due to a Permitted Election Change Event are generally effective on the first day of the month following the date of the change. Changes however, that occur on the first day of the month will be effective immediately. See sections below for specific effective dates applicable to the different types of status changes. The employee may be required to furnish appropriate documentation to verify the Permitted Election Change Event.
Birth of a Dependent Child
Employee life insurance coverage changes due to a birth of a child will be effective on the first day of the month following the date of the child’s date of birth. Coverage changes due to a child born on the first day of the month will be effective immediately.
Adoption or Legal Guardianship
Employee life insurance coverage changes due to a dependent child who is added as a result of adoption or legal guardianship will be effective on the first day of the month following the date of the child’s adoption or legal guardianship. Coverage changes due to an adoption or attainment of legal guardianship which occurs on the first day of the month will be effective immediately.
Marriage
Coverage changes due to marriage will be effective on the first day of the month following the date of marriage. Changes for a marriage occurring on the first day of the month will be effective immediately.
Divorce, Legal Separation or Annulment
Coverage changes due to a divorce, legal separation or annulment will be effective on the first day of the month following issuance of a court decree, the actual date of divorce (6 month period following the court decree), or in cases of legal separation, date of the court order or separation agreement. There is no waiting period in Iowa so the change in status will be effective on the first day of the month following the date of the final court decree.
Annual NUFlex Enrollment
Employees may change a life insurance coverage option and/or tobacco/nicotine designation during the annual NUFlex enrollment. To maintain the integrity of the life insurance program and corresponding premiums, employees will be required to redesignate their tobacco/nicotine status every two years. The
Life Insurance Tobacco/Nicotine Designation Change Form should be completed to redesignate the tobacco/nicotine status.
Proof of insurability is required to increase coverage during the annual NUFlex enrollment.
An employee must be actively at work in order for the increased life insurance coverage to be effective.
Leave of Absence
Employees may continue life insurance coverage while on an approved leave of absence for up to two years. The Campus Benefits Office will collect the life insurance premium from the employee and forward to Assurity Life Insurance.
Active Military Duty Leave of Absence
An employee who commences a leave of absence for active duty in the military may cancel life insurance coverage during the leave. Upon return from active duty, the employee may reenroll for life insurance coverage, not to exceed the amount of coverage enrolled for prior to the leave, without proof of insurability or any waiting period. The employee may be required to provide documentation to support the date military service ended.
Termination of Coverage
Coverage terminates on the last day of the month following the date of termination or date the employee is no longer eligible for coverage. If the date of termination or employee’s coverage ineligibility is the last day of the month, coverage will terminate immediately.
Assurity Life Insurance Overview
Assurity Life Insurance Company’s origins are rooted in a century-long legacy of providing long-term security to policyholders that has earned generations of customers’ confidence and trust.
Assurity Life serves customers across the nation, offering disability income, critical illness and life insurance, annuities and specialty insurance plans through our representatives, worksite distribution and direct mail. Pension and investment management services are available through Assurity Advisors Inc., a subsidiary of Assurity Life.
With assets exceeding $2 billion, Assurity Life has built a reputation for “best in class” service and sound, conservative business practices with a disciplined approach to financial management. Headquartered in Lincoln, Neb., Assurity Life has earned a high rating from A.M. Best Company, the insurance industry’s leading independent analyst.
We’re proud of our history of integrity, financial accountability…and helping people through difficult times.
Visit the Assurity Life Insurance Home Page
Group Identification Number (Life Insurance)
G00406
Benefits Summary
The life insurance plan provides term life insurance coverage (no cash value) that is payable in the event of an employee death, thus giving the family or beneficiary financial protection.
Each life insurance option includes varying amounts of coverage with premiums based on the employee’s age and tobacco/nicotine use. Coverage amounts are reduced for employees age 70 and over. Premiums for coverage amounts exceeding $50,000 are withheld on an after-tax basis, i.e., subject to state and federal income taxes and Social Security.
Life insurance option 1 includes $15,000 of accidental death & dismemberment (AD&D) coverage. All other life options (2-13) include $25,000 of AD&D coverage. Accidental death & dismemberment coverage ends at age 70.
Critical Illness Benefit
Life insurance also includes a Critical Illness benefit equal to $5,000. This additional benefit will pay insureds a lump sum amount (benefit may be taxable for Option 1 and is nontaxable for Options 2-13) upon the first-ever confirmed diagnosis of several life threatening covered illnesses or medical
procedures including heart attack, open heart surgery, cancer, kidney failure, and stroke. Critical Illness insurance provides employees flexibility once a serious illness is encountered, which will avoid the need to access life savings for those expenses not covered by health insurance or disability. No enrollment is necessary to receive the Critical Illness insurance since it is part of the group life insurance policy.
Proof of Insurability
New hires or newly eligible employees applying for coverage requiring proof of insurability must complete a Statement of Health form. If all requested underwriting requirements are not completed within 90 days from the effective date of coverage, the application will be denied. The employee must wait until the next annual NUFlex enrollment to reapply for coverage.
Increasing coverage at the annual NUFlex enrollment requires the completion of a Statement of Health form. If all underwriting requirements are not completed by March 1, applications will be denied and the employee must wait until the next annual NUFlex enrollment to reapply for coverage.
Life insurance premiums for the total amount of coverage elected will be withheld beginning on the effective date of coverage. If coverage is denied, the employee should receive a premium refund up to the Guaranteed Issue Limit ($50,000) or the amount of coverage enrolled for prior to the requested coverage increase.
Any expense incurred for additional medical information as a result of the proof of insurability request will be paid by Assurity Life Insurance.
Beneficiary Designation
Employees should initially complete the Benefits Enrollment Form to designate a life insurance Primary Beneficiary. If desired, (but not necessary) a Contingent Beneficiary may be designated. Any subsequent designation change should be made by completing an Assurity Life Insurance beneficiary designation form. Beneficiary designation forms may be found on the University of Nebraska benefits Web page.
Conversion of Coverage
Life insurance coverage may be converted to an individual whole life policy upon termination of employment or ineligibility. A Notice of Right of Conversion of Your Group Life Insurance Policy form will be forwarded to each employee within 31 days of the termination or date the employee is no longer eligible. If death occurs during the 31 day conversion period, life insurance benefits will be paid to the beneficiary.
