Are you prepared?
Life insurance is something no one wants to think about but is important to have. The State of Indiana makes having coverage easier by offering four types of coverage: basic, supplemental, voluntary AD&D and dependent life insurance. During this Open Enrollment, take the time to review your finances and consider which option and coverage amount is best for you and your family.
Some life insurance changes can be completed within your Open Enrollment event. These changes include decreasing your coverage level or dropping any of your life insurance plans. You may also elect voluntary AD&D and child dependent life insurance, as long as you are currently enrolled in basic life insurance with AD&D. Additionally, you may update your beneficiary information and/or allocation amounts. All changes are effective in January 2018.
Outside of Open Enrollment you may acquire or make changes to your life insurance plans by completing the Evidence of Insurability (EOI) process at any time throughout the year. Allowable changes include increasing your coverage level and/or adding an eligible spouse to your dependent life insurance plan. This process applies to the basic, supplemental and dependent life policies.
The EOI application can be completed online at any time. On average the application takes 10 to 30 minutes to complete. Instructions on how to submit EOI through Securian can be found here. Once submitted, Securian reviews your application and informs both you and SPD Benefits of its decision. If approved, SPD Benefits makes the appropriate changes to your life insurance plans and starts the premium deductions.
Please keep in mind, you may also make changes to your beneficiary information at any point during the year by accessing PeopleSoft self-service. Instructions on how to change your life insurance beneficiaries can be found here. Please remember, you are the only one who can change your beneficiary information.
Reminder: Supplemental life insurance is offered to most employees in increments of $10,000 up to and including $500,000, regardless of salary level. Employees reaching age 65 or older on or before December 31, 2017, are limited to $200,000 of supplemental life insurance coverage. Employees reaching age 65 during the plan year are automatically reduced to $200,000 of supplemental life insurance coverage and their payroll deductions are adjusted accordingly.
Indiana State Personnel is excited to announce a new life insurance offering for the 2018 plan year. During Open Enrollment you will have the option to select voluntary accidental death and dismemberment (AD&D) coverage. This benefit provides a payment in the event you experience a fatal accident or non-fatal accident involving dismemberment or loss of eyesight, hearing or other key function such as loss of hands, feet, or fingers.
Voluntary AD&D is guaranteed issue meaning that you are not required to apply for the coverage through Evidence of Insurability (EOI). Enrollment in basic life and AD&D is the only requirement to enroll. When enrolling in voluntary AD&D you may elect any amount of coverage from $10,000 to $500,000, in $10,000 increments. The bi-weekly rate for coverage is $0.009 per $1,000 of coverage.
Please note, that at age 65 there is an age reduction in benefits. The amount of coverage on an employee age 65 or older will be a percentage of the amount in force on their birthdate in accordance with the following table:
|Age of Employee||Amount of Insurance|
|75 and older||25%|
Age reductions will apply the first day of the month following an insured employee's applicable birthday.
For more information on what is covered under the Voluntary AD&D, please see the policy below:
Take time this Open Enrollment to review and update your life insurance beneficiary information
Open Enrollment is a great time to review your current life insurance beneficiary information. It only takes a couple of minutes to verify your beneficiary designations and update their contact information in your Open Enrollment event. By routinely checking this information, you are assuring you have allocated your life insurance benefits as desired, since certain life events such as marriage, divorce, birth or death may change how you want your benefits paid out.
In addition to confirming your beneficiary allocation, you should also update their contact information. It is extremely important PeopleSoft has the correct address and phone number for all of your beneficiaries. This information is used to identify and locate your designated beneficiaries if a claim is processed. Without updated contact information, it may take a significantly longer period of time to pay out a claim.
Once you have designated your beneficiaries, it is a good idea for you to notify them of your policy and your decision to list them as a beneficiary. Providing policy information to your beneficiaries prior to a claim occurring makes a difficult situation easier to cope with, especially when dealing with the financial aspect of the loss.
Note: All beneficiary changes made within your Open Enrollment event take effect on January 14, 2018, unless you are employed with a direct bill agency, in which case your changes will be effective January 1, 2018.