Life Insurance - HR Policy 306

Life Insurance - HR Policy 306

Abstract:
This policy details the types of life insurance coverage available to UAB employees. This document lists the terms of available plans, schedule insurance and rules for conversion.
Effective Date:
7/1/2012
Responsible Party:
Contacts:
Benefits
Administrative Category:
Applies To:
Staff
Material Original Source:

Policy 306 - Life Insurance

Date Issued: 10/80
Date Revised: 07/12

Life Insurance

UAB provides group term life insurance for all full-time regular employees, 3/12 hour shift employees, full-time temporary employees, postdoctoral scholar employees, interns and residents as well as alternative schedules (32 hours or more and 10 month employees). The amount of coverage varies according to salary level and age. The total premium cost is paid by UAB.

In addition, a voluntary group universal life insurance program is available for regular staff employees interested in additional insurance coverage. Spouses and children may be covered by this program. The total premium cost for this insurance is paid by the employee.


306.A. UAB-paid Life Insurance

All full-time regular employees are covered by group term life insurance. At the time of employment, each new employee completes an application card providing certain personal data and designating the beneficiaries. The insurance is effective on the date of employment.

The beneficiary designation may be changed at any time by completing a new beneficiary card.

If an employee becomes totally disabled, the group term life insurance will remain in force in the amount and for the period specified in the policy as long as the disability continues, provided proof of disability is furnished as required by the insurance company.

To continue insurance protection during leave of absence, the employee must contact the HR Benefits Office. Employees are required to pay the premiums during leave of absence without pay.

Employees who terminate from UAB may convert to an individual policy, without medical examination, an amount up to the amount of coverage under the group policy. Application for conversion must be made within 31 days following the last active day at work.


Schedule of Insurance:

Annual Salary
Amount of Insurance
up to $11,999
$22,500
$12,000 - $17,999
$25,200
$18,000 - $23,999
$30,000
$24,000 - $29,999
$27,500
$30,000 - $39,999
$50,000
$40,000 or more
125% of salary, rounded upward
to the nearest $1,000, subject to a
maximum amount of life insurance of
$300,000


If you are at least 60 years old or older with at least 5 years of service upon termination of employment, you are eligible for $6,000 life insurance at a nominal monthly premium. (Not available for UAB LLC employees)

When an employee reaches age 65, the amount of insurance coverage will be 65 percent of the amount determined according to the above schedule, rounded upward to the nearest $1,000. At age 70, coverage is reduced to 50 percent. Retired members, regardless of age, are eligible at time of retirement to continue coverage in the amount of $6,000 provided they pay the full premium cost to UAB (Not available for UAB LLC employees). Disabled employees receiving benefits under UAB's disability insurance program continue to be covered under the life insurance program for active employees.

An employee may convert whatever amounts of insurance are lost by reductions in coverage because of retirement or attaining age 65 or 70 if conversion is applied for within 31 days of eligibility for conversion.


306.B. Employee-paid Group Universal Life Insurance (OPTIONAL)


Group universal life insurance is available for employees who feel that they need additional coverage. Through this program, employees may also purchase coverage on their spouses and children.

For eligibility, refer to the "Benefit Eligibility" chart in the You and UAB Handbook. During the first 60 days of employment, employees may choose to purchase up to three times their salary, not to exceed $100,000, in life insurance on a guaranteed issue basis without medical examination or other evidence of insurability. The maximum coverage is five times salary, not to exceed $1.4 million. Evidence of insurability will be required for maximum coverage.