Group Term Life Insurance

Group Term Life Benefits Guide

Fort Dearborn Life Insurance Company (FDL) is the administrator for the Group Term Life options available to you and your dependents.

FDL offers the following plan options:

  • Employee Basic Group Term Life (Basic Group Term Life)
  • Employee Voluntary Group Term Life (Voluntary Group Term Life)
  • Voluntary Spouse Group Term Life (Voluntary Spouse Group Term Life)
  • Voluntary Dependent Group Term Life (Voluntary Dependent Group Term Life)
Group Term Life Options
Member Basic GTL Voluntary GTL
Employee $10,000 (provided as part of the Basic Package at no cost to you) 1 to 6 times Basic Annual Earnings up to a maximum of $1,500,000 1,2,3,4,5
Spouse N/A $10,000 Voluntary Dependent Group Term Life
$10,000 Voluntary Dependent Group Term Life + $15,000 Voluntary Spouse Group Term Life 5,6
$10,000 Voluntary Dependent Group Term Life + $40,000 Voluntary Spouse Group Term Life 5,6
Dependent Child(ren) N/A $10,000 Voluntary Dependent Group Term Life 6
1 Basic Annual Earnings are the contract salary for employees on a nine-month or twelve-month appointment, the hourly rate times 2,080 for hourly wage employees or the weekly rate times 52 for weekly wage employees. Basic Annual Earnings excludes overtime pay, commissions, bonuses and other types of extra compensation.
2 If you receive a salary increase during the plan year, your premiums will not be increased. However, in the event of your death, benefits will be paid according to your Basic Annual Earnings at the time of death. Benefits and premiums will not reduce if your salary decreases during the plan year.
3 Premiums for the 1 st $40,000 of Voluntary Group Term Life are deducted from an employee's paycheck before taxes are calculated.
4 The Voluntary Group Term Life amount is in addition to the Basic Group Term Life coverage. NOTE: You must be enrolled in a UT medical plan to be enrolled in the Basic Group Term Life coverage.
5 Evidence of Insurability is required for Voluntary Group Term Life of 4, 5 or 6 times Basic Annual Earnings; late applications for Voluntary Group Term Life of 1, 2 or 3 times Basic Annual Earnings; and for $15,000 or $40,000 additional Voluntary Spouse Group Term Life Insurance.
6 The Voluntary Spouse Group Term Life benefit may be elected only if the employee has Voluntary Group Term Life coverage of at least 1 times Annual Compensation and Voluntary Dependent Group Term Life coverage. Voluntary Spouse Group Term Life and Voluntary Dependent Group Term Life are only available to active employees.

Plan Features of Voluntary Group Term Life Insurance

If you are selecting the Voluntary Group Term Life coverage for the first time, the plan becomes effective on the date that you meet the Active Service definition, or meet the Evidence of Insurability (EOI) requirements, if applying for 4, 5, or 6 times annual salary. Active Service means that you are: performing the normal duties of your occupation; and working at least 20 hours per week and expected to continue in the employment for a term of at least 4 ½ months, or you are appointed for at least 50 percent of a standard full-time appointment. The Active Service requirement does not pertain to dependent coverage; however, if your dependent is confined in the hospital on the date his/her coverage would otherwise become effective, the insurance effective date will be deferred until the date the dependent is no longer confined in the hospital.

You must be in Active Service on the date your initial group term life coverage or any increases in group term life coverage are scheduled to begin. If you are not in Active Service on those dates; and your absence is caused by an injury, illness or layoff, the effective date of any initial or increased coverage is deferred until the first day you return to Active Service.

Additional Voluntary Group Term Life Features

  • Accelerated Payment Benefit: You may receive up to 50% of your coverage amount if you become terminally ill.
  • Automatic Increase Feature: Your coverage will automatically be raised when your salary increases without Evidence of Insurability.
  • Employee Waiver of Premium: If you become totally disabled for more than six continuous months before age 60, you can apply for your out-of-pocket premiums to be waived. This benefit ends at age 65, or when you are no longer disabled, whichever comes first.
  • The opportunity to convert your Basic and Voluntary Group Term Life and the Voluntary Spouse and/or Dependent Group Term Life coverage to an individual policy if you leave employment with UT.
  • The Voluntary Group Term Life plan does not pay benefits for death by suicide during the first two years of coverage.

You may read additional information about plan features and exclusions in the Group Term Life Benefits guide, also available at your campus Benefits Office.

Fort Dearborn Life Insurance Company
www.fdl-life.com/ut
(866) 628-2606
M-F 8:00 AM - 5:00 PM CST