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Retiree, Annuitant and Survivor Life Coverage 

 

There are two types of life coverage available: Basic Life and Optional Life. Life insurance options change upon retirement. For more information regarding life insurance coverage and benefits, consult the State of Illinois Group Term Life Certificate of Insurance or contact the life insurance plan administrator.

Basic and Optional Life Coverage

Basic term life insurance coverage is provided automatically at no cost to immediate and defer="defer"red annuitants and eligible survivors through the State Employees Group Insurance Program. Immediate annuitants and certain survivors may purchase Optional Life insurance coverage. All premiums for Optional Life insurance coverage are at the member’s expense.

Basic Life. Term coverage amounts vary – see eligibility in this section.

Member Optional Life. Options vary – see eligibility in this section. Any amount requested above four times the Basic Life amount will require satisfactory evidence of insurability.

Accidental Death and Dismemberment (AD&D). Accidental Death and Dismemberment (AD&D) is available to members in either (1) an amount equal to their Basic Life amount or (2) the combined amount of their Basic and Member Optional Life, subject to a total maximum of five times the Basic Life insurance amount or $3,000,000, whichever is less.

Spouse Life. Term coverage amounts vary – see eligibility in this section. Spouse Life applies to civil union partners, but does not apply to domestic partners.

Child Life. Term coverage amounts vary – see eligibility in this section. All dependent children age 25 and under are eligible for Child Life coverage, except individuals enrolled in the Other category. Children in the Disabled category are eligible for life coverage as long as they continue to meet eligibility requirements.

Eligibility for retirees and annuitants is below:

  • Retirees (prior to 1/1/1966) and their survivors:
    • Basic Life coverage is not provided.
    • Not eligible for Member Optional Life, AD&D, Child Life or Spouse Life coverage.
  • Deferred Annuitants (on or after 1/1/1966):
    • Basic Life
      • Under age 60 – Annuitants are insured for an amount equal to their annual basic salary as of the last day of employment.
      • Upon turning age 60 – Basic Life coverage reduces to $5,000.
    • Not eligible for Member Optional Life, AD&D, Child Life or Spouse Life coverage.
  • Immediate Annuitants (on or after 1/1/1966):
    • Basic Life
      • Under age 60 – Annuitants are insured for an amount equal to their basic annual salary as of the last day of employment.
      • Upon turning age 60 – Basic Life coverage reduces to $5,000.
    • Member Optional Life
      • Under age 60 - Annuitants may elect up to eight times their basic amount.
      • Upon turning age 60 – Member Optional Life ($5,000 increments) in excess of four times the basic amount terminates.
    • AD&D - Basic or Combined.
    • Child Life - $10,000 per child.
    • Spouse Life
      • Under age 60 – Spouse Life is $10,000.
      • Upon turning age 60 – Spouse Life coverage reduces to $5,000.

Eligibility for survivors is below:

  • Survivors of Immediate Annuitants and of Deceased Employees:
    • Individuals who became a survivor prior to 09/22/79:
      • Basic Life coverage is $2,000.
      • Member Optional Life - May elect up to four times their basic amount of $2,000.
      • AD&D - Basic or Combined
      • Child Life - $5,000 per child.
    • Individuals who became a survivor on or after 09/22/79:
      • Basic Life coverage is not provided.
      • Member Optional Life is $5,000.
      • Not eligible for AD&D, Spouse Life or Child Life coverage.
  • Survivors of Deferred Annuitants:
    • Individuals who became a survivor prior to 09/22/79:
      • Basic Life coverage is $2,000.
      • Not eligible for Member Optional Life, AD&D, Child Life or Spouse Life coverage.
    • Individuals who became a survivor on or after 09/22/79:
      • Basic Life coverage is not provided.
      • Not eligible for Member Optional Life, AD&D, Child Life or Spouse Life coverage.

    Changes to Coverage

    Changes to life insurance coverage may be made at any time during the plan year.

    Effective Date of Life Coverage Change

    When increasing Member Optional Life, or when adding Member Optional Life, Spouse Life or Child Life, the effective date of the coverage will be the statement of health approval date. The life plan administrator will send a letter to the member and the GIR that indicates whether the statement of health application was approved or denied.

    When adding or increasing AD&D coverage the effective date will be the date the request was received by the GIR.

    When terminating or decreasing any Optional Life coverage outside the Benefit Choice Period, the effective date will be the date the request was received by the GIR. A future effective date may be requested as long as it is within 60 days of the current date.

    Requests made during the Benefit Choice Period to add, increase, decrease or terminate any Optional Life coverage will be effective July 1st.

    Accelerated Benefits

    Life insurance benefits may be paid prior to death under certain circumstances. Accelerated benefits offer access to a portion of life insurance benefits if the member is diagnosed with a terminal illness and has a life expectancy of 24 months or less. Contact your group insurance representative (GIR) or the life insurance plan administrator for more information.

    Beneficiary Form

    A life insurance beneficiary form must be completed and updated periodically. It is the member’s responsibility to contact the life insurance plan administrator with any changes to the beneficiary designation and/or beneficiary address.

    Continuing Optional Life Coverage upon Turning 60

    Upon turning age 60, Basic Life and Member Optional Life coverage drops to $5,000 each per unit. The combined amount of Basic Life and Member Optional Life insurance that has been terminated may be continued by converting to an individual whole life insurance policy. Member Optional Life insurance coverage may be ported in lieu of converting. In order to continue life coverage, the annuitant must contact the life insurance plan administrator within 31 days of the date they attain the age of 60. Should the annuitant choose to continue coverage through one of the available insurance products, the full premium must be paid by the annuitant directly to the plan administrator. Once the annuitant makes the selection, the Program is no longer involved in the administration or premium rate structure of these insurance products. Contact the life insurance plan administrator for additional information regarding conversion and portability options.

    Updated 08/23/13