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Group Life Insurance - FAQs |
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How do I enroll
in the MainePERS Group Life Insurance program?
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What kinds
of Group Life coverage are available?
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How much
does Group Life coverage cost?
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Can I
change my Group Life insurance beneficiary?
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What
happens if I do not name a beneficiary?
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Is there
a cash value to my Group Life Insurance?
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What happens
to my Group Life Insurance if I terminate my employment?
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What happens to
my Group Life Insurance if I go on a leave of absence?
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What happens to
my Group Life Insurance if I retire?
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What
happens to my Group Life Insurance if I receive disability
benefits?
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Does my
level of insurance coverage remain the same after I retire?
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How can
I obtain additional Group Life Insurance coverage?
Q: How do I enroll in the MainePERS Group Life
Insurance program?
A: The MainePERS Group Life Insurance program is
available to State, teacher and those PLD employees whose
employers have elected to participate in the program, and
whose positions are eligible for coverage. If you complete
an application for group life coverage within the first 31
days of becoming eligible, you may select coverage for
yourself and your dependents without having to show evidence
of insurability.
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Q: What kinds of Group Life coverage are available?
A: You may choose basic and supplemental coverage
on yourself and dependent coverage for your eligible
dependents. Basic coverage is equal to your annual gross
compensation rounded up to the next one thousand dollars.
Supplemental coverage is available at one, two or three
times your basic coverage. Insurance on the employee also
includes Accidental Death and Dismemberment coverage.
Dependent coverage allows you to choose up to $10,000 of
coverage on your spouse and up to $5,000 on each child
depending on their age and marital status.
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Q: How much does Group Life coverage cost?
A: The cost of coverage varies with employers. In
some cases employers will pay for basic coverage while you
pay for supplemental and dependent coverage. In other cases,
you are responsible for all or part of your basic coverage
plus any supplemental or dependent coverage you choose. For
the cost of your coverage, please check with your employer's
payroll personnel.
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Q: Can I change my Group Life insurance beneficiary?
A: You may change your life insurance beneficiary
at any time and as often as you wish. Designation of
Beneficiary - Group Life Insurance forms may be obtained
from your payroll personnel, from the Forms section of this
Web site, or from the MainePERS Survivor Services Unit. In
order for a change of beneficiary form to be valid, it must
be received at MainePERS or postmarked prior to your date of
death.
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Q: What happens if I do not name a beneficiary?
A: If you die without naming a beneficiary, or
filing your designation, payment will be made in accordance
with MainePERS law which provides a list of mandated
beneficiaries in order of priority. The proceeds will pass
first to your spouse. If you have no spouse or your spouse
is also deceased, payment would be made to the duly
appointed executor or conservator of your estate.
Second, payment will be made to your child or
children or to their descendents. If there is no child or
descendents of a child, payment will be made to your
parent(s).
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Q: Is there a cash value to my Group Life Insurance?
A: No. The group life insurance coverage offered by
the MainePERS is term life insurance which has no cash
surrender value.
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Q: What happens to my Group Life Insurance if I
terminate my employment?
A: If you are terminating employment for purposes
other than retirement, you will be offered the opportunity
to continue your coverage by converting to a whole life
policy or port your coverage to another group plan with
MainePERS' insurance carrier without proof of insurability.
Conversion and portability are available to you for 31 days
after your termination, after which your coverage ceases if
you have not converted or ported your coverage.
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Q: What happens to my Group Life Insurance if I go
on a leave of absence?
A: If you are on an approved leave of absence or
seasonal layoff, you may continue to have coverage by
continuing to pay your premiums. Talk with your payroll
personnel or contact the
MainePERS Survivor Services Unit to find out what steps you need to take to
continue your payments. Failure to keep your premiums
current will automatically result in the cancellation of
your life insurance coverage.
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Q: What happens to my group life insurance if I
retire?
A: If you have group life insurance coverage just
prior to retiring and have participated in the Group Life
Program for 10 years, you may take your basic coverage into
retirement at no cost to you. To take advantage of this
coverage in retirement, you must submit your Application for
Retirement no later than 31 days after your termination from
employment and you must have a retirement date within the
same period of time.
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Q: What happens to my Group Life Insurance if I
receive disability benefits?
A: Your Basic coverage can be taken into disability
retirement, provided you have coverage on the day you apply
for disability or on the effective date of your approved
disability. Any supplemental insurance you may have
continues to be available only by conversion with our
insurance carrier.
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Q: Does my level of insurance coverage remain the
same after I retire? For State, Teacher, PLD, and
Legislative members:
A: Your level of coverage will start at an amount
equal to your average final compensation (AFC) at retirement
and will reduce 15% per year on the anniversary of your
retirement until it reaches 40% of the original value or
$2500, whichever is greater.
EXAMPLE: Three highest years
Average (AFC) of $28,000,
Retirement Date of
July 1, 2005.
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FROM
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THROUGH
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AMOUNT
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7/1/2005
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6/30/2006
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$28,000 (full
overage)
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7/1/2006
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6/30/2007
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$23,800 (85% of
$28,000)
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7/1/2007
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6/30/2008
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$19,600 (70% of
$28,000)
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7/1/2008
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6/30/2009
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$15,400 (55% of
$28,000)
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7/1/2009
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thereafter
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$11,200 (40% of
$28,000)
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Q:How can I obtain additional Group Life Insurance
coverage?
A: If you wish to obtain or increase your coverage
you must file Evidence of Insurability at your own expense
and in accordance with the requirements of the insurance
underwriter. The process begins by completing the form
called
Request for Basic and/or Additional Insurance Coverage
Requiring Evidence of Insurability
and sending it to the
MainePERS. We will then send you a medical questionnaire
which you will send to our insurance carrier. If approved,
your coverage or increased coverage will become effective
the first day of the month following the date you complete
one month of additional service in an eligible class.
If you have a question that is not addressed here, or if you
need more information than provided here, please
contact the Survivor Services Unit.
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