The life insurance program provides for a benefit upon death while in active service. In recognition of families with various needs for life insurance, a member of the program may choose the amount of benefit needed (in $50,000 benefit increments) up to $500,000. As family situations change, members may elect more or less life insurance. The cost of the life insurance will vary depending on the member’s gender, age and smoking habits. If a member chooses to increase the life insurance benefit beyond the enrolment period, he/she may be required to complete a health questionnaire. (Click here to view a rate table)
Members with a spouse or eligible dependent children may choose to insure their lives with $40,000 payable on the spouse’s death and $10,000 payable on each child’s death.
Further, a member may choose additional accidental death and dismemberment insurance for both himself/herself and/or their family, which provides for a benefit up to $250,000 upon the member’s death by accident and/or benefits if the member should lose a limb, eye and a variety of other consequences of accidents. (Click here for more details on the accident insurance benefits.) This life and accident insurance coverage will cease when the member retires, terminates or attains his/her Normal Retirement Date which is the July 1st following their 65th birthday.
Members working past their Normal Retirement date will have a university paid life insurance in the amount of $15,000 until their actual retirement date. If a member is eligible for Post Retirement Benefits they will continue to have a paid up life insurance benefit of $15,000.
Life insurance provides tax free benefits upon your death to support your family and estate for financial burdens resulting from your death. If you are the primary income earner for your family, you will need to consider your family’s ability to continue to sustain their lifestyle and savings goals for a period of time following your death. You will also need to consider what levels of debt are supported by your on-going earnings and how much may be needed to pay off that debt following your death. Consider other sources of insurance and payments upon your death including mortgage insurance and pension plan benefits.
Here is a Life Insurance needs worksheet designed by the Life and Health Insurance Foundation for Education