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Group Term Life and AD&D Insurance Substantial Premium Reductions and Plan Enhancements

As outlined in the May 2010 “A Matter of Health” newsletter, Dearborn National (formerly known as Fort Dearborn Life) has been selected through a competitive bid process to continue to provide Group Term Life and Accidental Death and Dismemberment (AD&D) benefits for UT System employees and your eligible dependents for an additional six years beginning September 1, 2010.  The UT System Office of Employee Benefits (OEB) is pleased to announce several new and enhanced plan design changes at significantly lower out-of-pocket cost for employees enrolled in the Group Term Life and AD&D coverage.

Effective September 1, 2010, your out-of-pocket cost for Employee Voluntary Group Term Life coverage will decrease an average of 11%, depending on your age.  The cost for Spouse Voluntary Group Term Life will not change.  The Basic Group Term Life coverage, which is included in your UT SELECT Medical coverage and is fully paid by your UT employer, will increase from $10,000 to $20,000 at no out-of-pocket cost to you.

Your out-of-pocket cost for Employee and Dependent Voluntary AD&D coverage will decrease by 14%.  The Basic AD&D, which is included in your UT SELECT Medical coverage and is fully paid by your UT employer, will increase from $10,000 to $20,000 at no out-of-pocket cost to you.

Also available for the first time will be Voluntary Group Term Life coverage for a Retired Employee’s spouse in the amount of $3,000.  The premium of $1.83 per month will be fully paid by the Retired Employee.  As an Active Employee, if you retire with an effective date prior to September 1, 2010, Evidence of Insurability (EOI) will be required to enroll your spouse in this new benefit.  If you retire on or after September 1, 2010, EOI will not be required if you and your spouse have Voluntary Group Term Life coverage on your last day of active employment, and there is no break between the last day of employment and the first day of retirement.  If EOI is required and satisfactory documentation is provided, coverage will begin either September 1 or the date of EOI approval, whichever comes first.

Enhancements to the Group Term Life Benefits:

Enhancements to the AD&D benefit will include the following additional benefits if the insured individual dies on or after September 1, 2010, as the result of an accident:

Contact Us

If you would like a specific topic discussed or have a question you would like answered in a future issue of this newsletter, please send your suggestions to benefits@utsystem.edu.

UT System Employee Benefits Web site: www.utsystem.edu/benefits/
UT System Retirement Programs Web site: www.utretirement.utsystem.edu
Your Local Benefits Office: www.utsystem.edu/benefits/contacts/#1