Life Insurance

GIC Life Insurance
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Optional Life Insurance Enhancement Effective October 1, 2008

All new enrollees receive a life insurance booklet by mail; for another copy, contact the GIC. A new booklet from The Hartford was mailed in October 2007 to all participants:

Life Insurance Booklets
Active Employee and State Retiree Life Insurance Booklet
Retiree Municipal Teacher (RMT) Life Insurance Booklet

Life insurance, insured by The Hartford Life and Accident Company, helps provide for your family’s economic well-being in the event of your death. This benefit is paid to your designated beneficiaries.

Retired Teachers who are enrolled in the GIC’s Retired Municipal Program are eligible for basic life insurance only in an amount determined by the city or town from where they retired. Retired Municipal Teachers who are enrolled in a health plan through the GIC’s municipal program, EGRs, and COBRA enrollees are not eligible for basic or optional life insurance.

Basic Life Insurance
(Employees, Retired State Employees and RMTs)
The Commonwealth offers $5,000 of Basic Life Insurance to all active state employees and most retirees who have health coverage through the GIC.

Optional Life Insurance (Active Employees and Retired State Employees Only)
Optional Life Insurance is available to provide economic support for your family. This term insurance allows you to increase your coverage up to eight times your annual salary. Term insurance covers you and pays your designated beneficiary in the event of your death or certain other catastrophic events. It is not an investment policy; it has no cash value. This is an employee-pay-all benefit. If you have been diagnosed with a terminal illness, you may elect an advance payment of a portion of your life insurance death benefits during your lifetime (Accelerated Life Benefit). If you have been diagnosed with a terminal illness, you may elect an advance payment of your life insurance death benefits (Accelerated Life Benefit).

How Much Do You Need?
To estimate how much Optional Life Insurance you might need, or whether this coverage is right for you, consider such financial factors as: as:

- Your family’s yearly expenses;
- Future expenses, such as college tuition or other expenses unique to your family;
- Your family’s income from savings, other insurance, other sources; and
- The life insurance cost and benefits for your age bracket. For instance, 35-year-olds with young families and mortgages might need the protection. But 65-year-olds who have paid off their mortgage and have no dependent expenses might not needs it, especially because premiums increase significantly as you age.

Accidental Death and Dismemberment (AD&D) Benefits (Active Employees, Retired State Employees, and RMTs)
In the event you are injured or die as a result of an accident while insured for life insurance, there are benefits for the following losses:

You must be enrolled in Basic Life Insurance in order to apply for Optional Life Insurance.

New Employees
As a new state employee, you may enroll in Optional Life Insurance for a coverage amount of up to eight times your salary without the need for any medical review.

Current Employee (Active Employees only)
Active employees may apply for the first time or apply to increase their coverage at any time during the year. The active employee must complete a personal health application for The Hartford’s review and approval. The GIC will determine the effective date if The Hartford approves the application.

Optional Life Insurance Enhancement Effective October 1, 2008
Active state employees who have a qualified family status change during the year will soon be able to enroll in or increase their optional life insurance coverage without any medical review in an amount up to four times salary within 31 days of the qualifying event. The family status change must occur on or after October 1, 2008:

Optional Life Insurance After Retirement
At retirement, you should review the amount of your Optional Life Insurance coverage and its cost to determine whether it makes economic sense for you to keep it. Optional Life Insurance rates significantlt increase when you retire and continue to increase based on your age. If you have paid off your home and student loans, your tax advisor might recommend other programs that might be beneficial. You cannot increase your amount of life insurance after you retire. However, if you decrease coverage and then later want to increase up to the amount you carried at retirement, you may do so with proof of good health acceptable to The Hartford.

Optional Life Insurance Non-Smoker Benefit (Active Employees and Retired State Employees)
At initial enrollment or during annual enrollment, if you have been tobacco-free (have not smoked cigarettes, cigars or pipes nor used snuff or chewing tobacco) for at least the past 12 months, you are eligible for reduced Optional Life Insurance rates. You will be required to periodically re-certify your non-smoking status in order to qualify for the lower rates. Changes in smoking status made during annual enrollment will become effective the following July.