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:
12/1/2017
Responsible Party:
Contacts:
Benefits
Administrative Category:
Applies To:
Staff
Material Original Source:

Policy 306 - Life Insurance

Date Issued: 10/80
Date Revised: 12/17

Life Insurance

UAB provides group term life insurance for all full-time regular employees, 3/12 hour shift employees, full-time temporary employees, weekend staff, postdoctoral employees, and trainees, 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 visiting the benefits online portal at www.uab.edu/hrintouch.
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 45 days following the last active day at work.
 
Schedule of Insurance
Annual Salary                                      Amount of Insurance                                                                      
Up to $23,999                                      $30,000
$24,000 to $29,999                              $37,500
$30,000 to $39,999                              $50,000
$40,000 and above                               125 percent of salary with maximum insurance coverage of $300,000
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. Conversion options are available for the amount reduced within the 45 days to the event. Disabled employees receiving benefits under UAB's disability insurance program continue to be covered under the life insurance program for active employees.

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 the lesser of three times annual earnings, not to exceed $500,000, 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 any amount in excess of guaranteed issue or late applications.