Employee Matters

This is the second of two articles about life insurance. This article provides information about assessing needs, plans offered, enrolling in a plan after the initial eligibility period, and increasing or decreasing employee or dependent coverage.

How much coverage do I need?
Use the Life and Health Insurance Foundation for Education calculators. Visit: http://www.life-line.org/life/index.html or consult with an insurance professional. Then review how much coverage you have through employment and individual policies.

How much coverage do I have through UW employment?
The university offers five term insurance plans: State Group Life; Individual and Family Group Life; University Insurance Association; UW Employees Inc.; and Voluntary Accidental Death and Dismemberment. The UW Staff Benefits Statement you receive every April shows the plans that you are enrolled in and the amount of coverage.

When reviewing your coverage, remember there is an employee death benefit payable through the Wisconsin Retirement System. The benefit doubled with the passage of the Retirement Improvement Bill (Act 11). The Employee Trust Funds WRS Annual Statement of Benefits you receive every May shows this information.

State Group Life, although a term life insurance plan, has an additional feature: a permanent paid-up insurance when a retired employee reaches age 65.

Three of the plans, State Group Life; Individual and Family Group Life; and AD&D offer employee, spouse and dependent coverage.

If enrolled in State Group Life, you may receive an increase in your employee coverage in March of each year if your earnings increase. Increases are based on your prior year’s WRS earnings. Decreases in earnings will not affect the level of coverage.

How do I purchase coverage after initial enrollment?
If you did not enroll during your initial enrollment period, or you did not enroll your spouse or dependents when first eligible, you must apply through evidence of insurability. Evidence of insurability is also required to increase the levels of coverage in the State Group Life Insurance program. You can apply or increase coverage in the AD&D program at any time without evidence.

How do you decrease or cancel coverage on yourself or a dependent?
You can decrease or cancel coverage at anytime. The application forms that are used to enroll are also used to decrease or cancel coverage. For example, if you want to cancel one level of your State Group Life Insurance, you do so by completing the State Group Life Insurance application/cancellation form.

What do I consider when comparing plans?

• Compare using a standard, such as cost per $1,000 of coverage.
• Does amount of coverage decrease with age?
• Are there minimum and maximum coverage amounts?
• Is there an accidental death and dismemberment benefit?
• Is there a premium waiver at time of employee disability?
• Are living benefits payable?

To review premiums for state group life and UW plans, visit: http://www.bussvc.wisc.edu/ecbs/uw1152-insurance-rates.html

For more information and forms, contact a benefits specialist, 263-7556, 262-5650, employee@bussvc.wisc.edu.