Life and AD&D
 

Optional Employee Term Life Insurance

Eligible full-time or part-time employees of Tufts Health Plan may elect Optional Employee Term Life Insurance: 

  • for themselves only; or
  • for themselves and their eligible dependents.          

To qualify for Optional Employee Term Life Insurance, you must enroll and agree to make the required payroll deduction contributions towards the cost of your coverage.

Certain losses are not covered by Optional Life Insurance. This is explained in the Exclusions and Limitations section.

AMOUNT OF BENEFIT
Your Optional Employee Term Life Insurance coverage is based on your annual earnings (as explained in the Basic Life Insurance section). As the chart below shows, you can elect up to 5x your annual earnings, rounded to the next higher $1,000. This benefit is payable in addition to the Basic (Company-paid) Life Insurance benefit. 

Here is an Example: Assume that your annual earnings are $25,300. This chart shows the amount of Optional Employee Term Life Insurance you can elect: 

Annual Earnings Amount of Insurance You Can Elect Amount of Coverage

$25,300

Option 1: 1 x annual earnings          $26,000               
Option 2: 2 x annual earnings         $51,000             
Option 3: 3 x annual earnings         $76,000             
Option 4: 4 x annual earnings       $102,000             
Option 5: 5 x annual earnings      $127,000             

Keep in mind that the amount of your coverage is determined by rounding to the next higher $1,000. For example, assume that you elect Option 3 (3x annual earnings). In the above example, your Optional Employee Term Life Insurance coverage is $76,000. (3 x $25,300 = $75,900; $75,900 rounded to the next higher $1,000 = $76,000.) 

The amount of your Optional Employee Term Life Insurance coverage will automatically adjust to match changes in your annual earnings. The maximum amount of Optional Employee Term Life Insurance you can elect is $1,200,000.

IF YOU WORK AFTER AGE 65
If you remain in active employment with the Company after age 65, your Optional Employee Term Life Insurance coverage will be reduced as follows: 

Active Employee Age* Basic Life Insurance Coverage
Age 65 65% of pre-age 65 amount
Age 70 or more 50% of pre-age 65 amount

*reductions shown go into effect as of your 65th or 70th birthday 

EVIDENCE OF INSURABILITY
You may be required to provide evidence of insurability that is acceptable to the Insurance Company before your Optional Employee Term Life Insurance election is approved. You will be required to provide this evidence if: 

  • the amount of optional life insurance you elect when you are first eligible to do so exceeds 3x your annual earnings (or $750,000, if less); or
  • you did not elect optional life insurance when you were first eligible to do so; or
  • you elect to increase your optional life insurance coverage due to a Change in Status or annual open enrollment election. 

For example, you do not need to provide evidence of insurability if the amount of optional life insurance you elect when you are first eligible to do so equals 1x, 2x, or 3x your annual earnings. You must provide this evidence if the amount of insurance you elect equals 4x or 5x your annual earnings. 

PAYING FOR YOUR COVERAGE
You pay for your Optional Employee Term Life Insurance coverage through after-tax payroll deduction contributions. Your cost for this insurance will depend on: 

  • the level of coverage you elect;
  • your age; and
  • whether or not you elect dependent insurance. 

Human Resources will provide you with the contribution rates for Optional Employee Term Life Insurance when you are first eligible to participate, and during the annual open enrollment period. You can also contact the Insurance Company for additional information about these rates. 

OPTIONAL DEPENDENT INSURANCE
You may enroll your eligible dependents for term life insurance coverage. The following chart summarizes the amount of dependent coverage that you can elect: 

Eligible Dependent Amount of Insurance
Spouse or domestic partner Up to $600,000 in $10,000 increments
(not to exceed 50% of your insurance amount)
Each child from birth to 14 days $500
Each child 14 days or over, up to age 19, or age 26 if a full-time student Option 1: $5,000
Option 2: $10,000

Here is an Example: Assume that your optional insurance amount is $51,000. In this case, you can elect $10,000 or $20,000 of Optional Dependent Insurance coverage for your spouse. 

DISABILITY AND TERMINAL ILLNESS
Special rules apply if you become totally disabled or terminally ill while you are covered by Optional Employee Term Life Insurance. Refer to the Disability and Terminal Illness Benefits section for an explanation.