Employee Matters

This column by Employee Compensation and Benefits Services addresses campuswide employment issues. Send your questions to wisweek@news.wisc.edu.

Individual and family group life insurance

Who may enroll?
UW System and UW–Madison employees who are eligible for state contribution to the state of Wisconsin group health insurance program.

How much insurance coverage is available?
Maximum amount: Employee = $200,000; spouse = $100,000; children = $10,000. Spouse or child coverage may not exceed that of the employee.
At enrollment: Employee = up to $20,000; spouse = up to $10,000; children = up to $5,000.
Guaranteed increases available each year: (may be limited by maximum amount). Employee = $5,000, $10,000 or $20,000; spouse = $5,000 or $10,000; children = $2,500. The dates for the 2003 Individual and Family Annual Increase Option period are March 3-21 for coverage effective May 1. The increase option is open to participants who have coverage in effect as of Jan. 1, 2003, and who are active employees, on approved leaves of absence or in layoff status. Notices are mailed to the employee’s home address. Address information is taken from January 2003 payroll processing center records.
Optional increases with evidence of insurability: (may be limited by maximum amount). Employee and spouse = multiples of $5,000; children = multiples of $2,500.

How much does it cost and how do I pay?
Current premium rates per $1,000 of insurance coverage can be found at http://www.bussvc.wisc.edu/ecbs. The premium for the coverage selected will be automatically deducted from your payroll check. Employees on approved leaves of absence may continue this insurance by making direct payment to their benefits office prior to the first of the month the premium is due and each month thereafter. (UW does not contribute directly to the cost of this program. However, the premium rates are very favorable due to the favorable past experience of the UW employee group.)

Additional benefits provided at no additional cost
Conversion benefit: Upon termination of this coverage, the employee, spouse and children may convert to any permanent plan of whole life insurance issued at that time by the insurance company, at their then current age, for an amount up to the amount insured under this plan. In addition, children may convert at age 25, when this coverage expires, for an amount up to five times the amount insured under this plan.

Disability benefit: If you become totally disabled prior to age 65 (for more than six months), the premiums that become due for yourself, spouse and children will be waived until you are no longer disabled. However, coverages may not be increased while the employee is disabled.

Accelerated death benefit: If a covered person is expected to die within 12 months, as certified by a licensed physician, an optional benefit payment of one half the insured amount, reduced by one year’s interest, may be requested. If elected, this benefit reduces the benefit paid at death by 50 percent.

Questions?
Contact a specialist at Employee Compensation and Benefits, 263-7556, 262-5650, employee@bussvc.wisc.edu.