There is no increase in the monthly premium for the Group Term Life plan for the 2008-2009 plan year.
Fort Dearborn Life Insurance Company® (FDL) is the insurer for the Group Term Life options available to you and your dependents. FDL offers the following plan options:
- Employee and Retiree Basic Group Term Life (Basic Group Term Life)
- Employee and Retiree Voluntary Group Term Life (Voluntary Group Term Life)
- Employees Only - Voluntary Spouse Group Term Life (Voluntary Spouse Group Term Life)
- Employees Only - Voluntary Dependent Group Term Life (Voluntary Dependent Group Term Life)
Group Term Life Options For EMPLOYEES
| Member |
Basic GTL |
Voluntary GTL |
| Employee |
$10,000 (provided as part of the Basic Package at no cost to you) |
1 to 6 times Annual Compensation 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 Annual Compensation is the contract salary for employees on a nine-month or twelve-month contract, the hourly rate times 2,080 for hourly wage employees or the weekly rate times 52 for weekly wage employees. Annual Compensation excludes overtime pay, commissions, bonuses and other types of extra compensation. Annual Compensation includes earnings received as longevity and hazardous duty compensation but excludes overtime pay.
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 Annual Compensation at the time of death. Benefits and premiums will not reduce if your salary decreases during the plan year.
3 Premiums for the first $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 SELECT 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; and for previously eligible active employees’ applications for Voluntary Group Term Life of 1, 2 or 3 times Annual Compensation.
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.
Group Term Life Options for Retired Employees
| Member |
Basic Group Term Life |
Voluntary Group Term Life |
| Retired Employee |
$3,000
(provided as part of the Basic Package at no cost to you) |
$7,000 1, 2
$10,000 1, 2
$25,000 1, 2
$50,000 1, 2 |
1Previously, the maximum benefit for the Voluntary Group Term Life plan included the Basic Group Term Life coverage amount of $3,000. Effective September 1, 2004, the Voluntary Group Term Life amount will be 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 GTL coverage.
2Evidence of Insurability is required for retired employees who were previously eligible but did not elect the Voluntary Group Term Life or to increase the Voluntary Group Term Life.
Plan Features of Voluntary GTL Insurance
For EMPLOYEES | For RETIRED Employees
If you are selecting the Voluntary Group Term Life coverage for the first time, the plan becomes effective on the date you meet the Active Service definition, or meet the Evidence of Insurability (EOI) requirements, if applying for 4, 5, or 6 times annual salary or 1, 2 or 3 times Annual Compensation if you are a previously eligible active employee. Active Service means you are
- performing the normal duties of your occupation; and
- working at least 20 hours per week expected to continue in the employment for a term of at least 4 ½ months; or
- you are appointed for at least 50 % of a standard full-time appointment.
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.
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.
For the purposes of determining benefit amounts, the total benefit will be based on the greater of the employee’s annual compensation on September 1 of each year, or by the total compensation on the date of death for the plan year.
Additional Voluntary Group Term Life Features
- Accelerated Payment Benefit: You may receive 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.
- You have 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.
Plan Features of Voluntary GTL Insurance for RETIRED Employees
- Accelerated Payment Benefit: You may receive 50% of your coverage amount if you become terminally ill.
- 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 Plan certificat also available from your campus Benefits Office.
Who Will Receive Your Life Insurance Benefit? Keep your beneficiary designations up- to- date
The purpose of your life insurance coverage is to provide financial security for your family and loved ones after your death. However, if you have experienced a major life change, such as a marriage, divorce or death of a loved one, your life insurance benefit may go to someone other than the person you thought would receive it.
A beneficiary is the person who would receive the money from your life insurance in the event of your death. It is important to review and update your beneficiary designations regularly and especially following life changes to ensure your benefits are distributed according to your wishes.
If you need to update your beneficiary designations, complete the Change of Beneficiary form and return it to your institution’s benefits office.
You may read additional information about plan features and exclusions in the Group Term Life Plan certificate also available at your institution Benefits Office.
