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Group Term Life Insurance

 

 

The University of Maine System recognizes the importance of providing financial security for those employees care about in the event of the employee's death and so provides a basic life insurance benefit at no cost to eligible employees.  In addition, the University of Maine System allows eligible employees to purchase additional life insurance coverage for themselves, their spouse, and their dependent children. The life insurance program is insured through Prudential. See below for more information regarding, designating beneficiaries, Evidence of Insurability, conversion privileges and also refer to the Summary Plan Description for specific benefit plan details.  

 

Basic Life Insurance

The University of Maine System provides eligible employees with insurance equal to their annual salary, rounded up to the next highest $1,000.

When employees are age 65 or more, their amount of insurance is limited to 65% of the amount for which they would then be insured if there were no limitation.

Cost of coverage in excess of $50,000 is included in employee's taxable income.

 

Beneficiary(ies)

In the event of your death, life insurance benefits are paid to your designated beneficiary(ies).  If you wish to change your beneficiary(ies) or designate multiple primary or contingent beneficiaries, enter in MaineStreet Self-Service or complete the Beneficiary Designation form and return it to the UMS Employee Benefits Center.

 

Supplemental (Optional) Life Insurance

Eligible employees may elect to purchase 1, 2, 3, 4 or 5 times their annual salary in additional life insurance coverage.  Employees pay for the optional life insurance at low group rates through payroll deductions.   During open enrollment or if an employee experiences a qualifying benefit event, they may increase their existing coverage one multiple of their salary, up to the guarantee limit (the lesser of 3 times their salary or $300,000).  If they elect to increase by more than 1 multiple or to 4 or 5 times, or if their coverage will exceed $300,000, employees must submit an Evidence of Insurability form.  If employees currently do not have optional life coverage, they can enroll for 1 times their salary without submitting an Evidence of Insurability form. If employees wish to enroll for more than 1 times their salary, Evidence of Insurability is required.  

 

Premium Rates for Supplemental (Optional) Life Insurance

All costs per $1,000 of coverage

Employee Age as of Jan. 1* Monthly Biweekly
Employee Cost
Employee Cost
Under 35
.04
.018
35-39
.07
.032
40-44
.09
.042
45-49
.15
.069
50-54
.23
.106
55-59
.43
.198
60-64
.66
.305
65-69
1.27
.586
70+
Not Available

*Employee's age as of January 1st of each year determines the rate for that entire year.

How to calculate the estimated cost of Supplemental Life Insurance:

  1. Multiply your annual base salary by the number you want for additional coverage (1, 2, 3, 4 or 5)
  2. Round to the next highest $1,000
  3. Divide #2 by 1,000
  4. Multiply #3 by the appropriate age rate in the table above

See also:  Understand Your Pay Stub

When employees are age 65 or more, their amount of insurance is limited to 65% of the amount for which they would then be insured if there were no limitation.

 

The amount calculated is the estimated cost for optional insurance. This is the amount that will be deducted on a monthly or biweekly basis. Coverage ceases at age 70. 

Beneficiary(ies)

Employees wishing to change their beneficiary or designate multiple primary or contingent beneficiaries, they must enter in MaineStreet Self-Service or complete the Beneficiary Designation form and return it to their Campus Benefits Office.

 

Spouse (Domestic Partner) Life Insurance

The University of Maine System allows employees to purchase coverage for their spouse (or domestic partner).  The amount of insurance is purchased in $10,000 increments, up to a maximum of $50,000. Spousal life insurance cannot exceed 1/2 employee's own combined basic and optional life insurance amount. 


During open enrollment or if an employee experiences a qualifying benefit event, they can increase their spousal life insurance by 1 increment of $10,000 without providing Evidence of Insurability.  Greater increases require an Evidence of Insurability form.


Premium Rates for Spousal Life Insurance

All costs per $1,000 of coverage

Spouse Age as of Jan. 1* Monthly Biweekly
Employee Cost
Employee Cost
Under 35
.09
.042
35-39
.11
.051
40-44
.12
.055
45-49
.18
.083
50-54
.29
.134
55-59
.56
.258
60-64
.74
.342
65-69
1.40
.646
70+
Not Available

*Spouse/partner's age as of January 1st of each year determines the rate for that entire year.

How to calculate the estimated cost of spousal life insurance:

  1. Divide the elected amount ($10,000, $20,000, $30,000, $40,000 or $50,000) by 1,000
  2. Multiply the amount from #1 by the appropriate age rate in the table above

 

Coverage ceases when the employee's spouse reaches age 70.


If an employee's spouse passes away, the employee is automatically named as beneficiary.

 

Dependent Child(ren) Life Insurance

Eligible employees may also buy life insurance coverage for their eligible children from birth to age 26. Employees may elect two levels of dependent life insurance. No Evidence of Insurability is required.


Premium Rates for Child(ren) Life Insurance
Coverage Amount Monthly Biweekly
Employee Cost
Employee Cost
$5,000 per child
.28
.13
$10,000 per child
.55
.25

 

If a child passes away, the employee is named beneficiary.


It is the employee's responsibility to notify their local Campus Benefits Office when a child is no longer eligible for dependent status.

 

Evidence of Insurability


If an employee is enrolling for a level of life insurance coverage that requires verification of good health, an Evidence of Insurability form must be completed and returned to their Campus Benefits Office.  Employees must be actively at work and dependents must not be hospitalized or considered disabled.

 

Conversion Privileges


When group term life insurance ends due to termination, resignation, retirement, etc., employees may have the option to convert the basic,
optional, spousal, and dependent child coverage to an individual policy directly with Prudential.  A Notice of Conversion Privilege application must be completed and sent to Prudential in order to take advantage of the conversion privilege.

 

Related Information

Domestic Partner Benefits

 

UMS questionsContact Benefits

The above is a brief summary of benefits offered by the University of Maine System.  If you have a question about benefits enrollment, call toll-free 866-269-9635 (or 973-3373) or email benefits@maine.edu.  Have your Employee ID number for faster service.

Last Updated:  May 9, 2013