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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, employees' life insurance benefits are paid to their designated beneficiary(ies). If employees wish to change their beneficiary(ies) or designate multiple primary or contingent beneficiaries, complete the Beneficiary Designation form and return it to their Campus Benefits Office.
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 | 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 |
|
How to calculate the estimated cost of Supplemental Life Insurance:
- Multiply your annual base salary by the number you want for additional coverage (1, 2, 3, 4 or 5)
- Round to the next highest $1,000
- Divide #2 by 1,000
- Multiply #3 by the appropriate age rate in the table below
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 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 | Monthly | Biweekly |
|---|---|---|
Employee Cost |
Employee Cost |
|
| Under 35 | .08 |
.037 |
| 35-39 | .10 |
.046 |
| 40-44 | .11 |
.051 |
| 45-49 | .16 |
.074 |
| 50-54 | .26 |
.120 |
| 55-59 | .51 |
.235 |
| 60-64 | .67 |
.309 |
| 65-69 | 1.27 |
.586 |
| 70+ | Not Available |
|
How to calculate the estimated cost of spousal life insurance:
- Divide the elected amount ($10,000, $20,000, $30,000, $40,000 or $50,000) by 1,000
- 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 dependents from birth to age 19 (dependent full-time students to age 23). 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 Rights will be sent at that time.
Related Information
Contact Benefits
The above is a brief summary of benefits offered by the University of Maine System. Detailed brochures/booklets are available online, at the local University Office of Human Resources, or at the System Office of Human Resources.
If you have a question about your benefits coverage, benefit deduction amounts or any other benefit related question, contact your Campus Benefits Office. Be prepared to give your Employee ID number.
Last Updated: August 19, 2008