Life Insurance

  • Table of Contents

    • Coverage and Eligibility
    • How to Enroll
    • Voluntary Coverage
    • Evidence of Insurability
    • Open Enrollment
    • Imputted Income
    • Change of Status
    • Termination of Coverage and Conversion Privileges

    Coverage and Eligibility

    EWSD provides term Life Insurance and Accidental Death and Dismemberment (AD&D) benefits to eligible employees through UNUM Life Insurance. The cost of the coverage is paid for by the school district. Below is a chart that outlines the coverage amount based on the employee’s group. Employees should refer to their master agreement or individual employment contract for eligibility and coverage information:

    Employee Group

    Basic Coverage Amount

    Full-time  Non-Union Support Staff and Contract Level 3 Employees

      $25,000

    Full-time EWEA-ESP Support Staff 

      $30,000

    Full-time Teachers

      $30,000

    Administrators and Directors

      $250,000

    Life amd AD&D Benefits reduce to 65% at age 70 and to 50% at age 75


    How to Enroll

    New hires/rehires are eligible to enroll on our group life insurance plan the first of the month following his/her first day of employment as an eligible employee. In order to enroll, a life insurance enrollment form needs to be completed within 30 days of the employee’s date of hire. If the enrollment form is received after 30 days, coverage will begin on the next open enrollment date.

    Voluntary Coverage

    In addition to the coverage amounts outlined above, employees have the option for purchasing additional life insurance coverage amounts. The cost of the additional coverage is paid for by the employee through payroll deductions. The cost of the coverage is dependent on the employee’s age per the chart below. Said rates are subject to change at the carrier’s discretion:

    Age of Employee

    Rate/$10,000 of Coverage

    15-24

    0.286

    25-29

    0.341

    30-34

    0.495

    35-39

    0.759

    40-44

    1.155

    45-49

    1.760

    50-54

    2.585

    55-59

    3.641

    60-64

    4.587

    65-69

    6.578

    70-74

    12.441

    75+

    38.456

    Evidence of Insurability may be required depending on the additional amount being requested.  Additional coverage shall be approved at the discretion of the carrier.

    Evidence of Insurability

    Evidence of Insurability must be completed and submitted with the Life Insurance Enrollment Form in the following events. When evidence of insurability is required, coverage shall be subject to carrier approval. Coverage will begin on the date it is approved:

    • Additional coverage Option C is chosen at initial enrollment
    • Employee refused coverage at initial enrollment and elects to enroll during open enrollment (regardless of the coverage level)
    • Participating employee elects to increase coverage during open enrollment (regardless of the option chosen)
    • Participating employee elects to increase coverage as a result of a change in family status.

    Open Enrollment

    The life insurance open enrollment period if May 1 through May 31 for a July 1st effective date. During an open enrollment, eligible employees can:

    • Increase voluntary coverage  
    • Enroll, if not already enrolled

    Imputed Income

    Premiums paid for basic coverage amounts in excess of $50,000 is treated as taxable income and subject to federal, state and FICA taxes.

    Change of Status

    Participating employees may elect to increase or decrease coverage between open enrollment dates in the following circumstances:

    • Marriage
    • Divorce
    • Birth/Adoption of a Child
    • Death of a Spouse/Child

    A completed life insurance enrollment for and Evidence of Insurability (if increasing or adding voluntary coverage) must be completed and submitted within 30 days of the event. The new coverage amount will take effect the later of the following:

    • First of the month following the date of the event; or,
    • Date the new coverage amount is approved (if increasing coverage).

    Termination of Coverage and Conversion Privileges

    Coverage for a participating employee will automatically be cancelled on the effective date of one of the following events:

    • Termination of employment
    • Employee retires
    • Employee takes an unpaid Leave of Absence in excess of 2 weeks
    • Employee no longer meets the carrier eligibility requirements (minimum of 30 hours/week)
    • Employee changes positions and is no longer eligible for coverage

    As a result of one of the events outlined above, an employee is eligible to convert his/her policy to an individual policy, without evidence of insurability, provided s/he has been continuous insured by the plan for at least five (5) consecutive years. The employee would be responsible for paying the premiums associated with the plan. 

     

    Please refer to your collective bargaining agreement or individual employment contract for more information.

    Questions? Contact Human Resources at (802) 857-7048 or write Sandy Emery at semery@ewsd.org.