Life Insurance
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| 91.1 | Policy | |||
| Group life insurance coverage is available for all regular full-time employees and others as designated by the University Administrative Regulations. The terms of the group life insurance policy issued by the current insurance carrier selected by the University are binding on all participants in the group insurance plan. | ||||
| 91.1.1 | The University group life insurance is term insurance, as described in this policy, and no cash value accumulates. The policy provides for payment of a principal sum to a designated beneficiary(ies) upon the death of the employee. | |||
| 91.1.2 | The University provides a ten thousand dollar ($10,000) basic life insurance policy at no cost for each eligible employee. | |||
| 91.1.2.1 | Coverage under the basic life insurance plan for eligible employees takes effect on the first day of work and terminates on the last day of the month following the month in which the University employment is terminated. | |||
| 91.1.3 | Optional amounts of term life insurance coverage may be purchased in addition to the basic coverage. Optional life insurance, if purchased, is effective at the time the appropriate forms are received by the Employee Benefits Office of Human Resource Services. An employee is eligible for the basic life insurance benefit the first day of work, but it is mandatory that an application form be filed before any optional coverage is effective. Optional insurance is that amount which when added to the basic ten thousand dollars ($10,000) equals one (1),two (2), or three (3) times the employee’s annual salary, up to a maximum of $375,000. | |||
| 91.1.3.1 | The amount of optional insurance shall be raised to the next higher increment of one thousand dollars ($1,000) in cases where the amount selected is not an even multiple of one thousand dollars ($1,000). The expense of optional life insurance shall be borne by the employee. | |||
| 91.1.3.2 | Enrollment in optional life insurance shall occur within the first thirty (30) days of employment or during open enrollment, upon the initiative of the employee. | |||
| NOTE: Annual base salary is the employee’s annualized current rate of pay without any premium or overtime rates. For physicians, if applicable, annual base salary plus Kentucky Medical Services Foundation (KMSF) supplemental salary is the current rate of pay for optional life insurance purposes. | ||||
| 91.1.3.3 | Evidence of insurability is not required for the optional coverage if the employee signs up during the first thirty (30) days of employment. Evidence of insurability is required to sign up for or increase the optional life insurance during an open enrollment period. | |||
| 91.1.3.4 | The cost of optional life insurance is impacted as an employee’s salary and age change. and tThe effective date of a salary change will be the first day of the month following the month in which the salary change occurs. The effective date of an age change is the first day of the birth month. | |||
| 91.1.3.5 | An employee may convert without evidence of insurability all or part of the coverage to an individual, non-term type policy if application is made within thirty-one (31) days following termination of employment or retirement. In the event death should occur during the thirty-one (31) day period, the amount of insurance which an employee would be eligible to convert shall be paid to the beneficiary(ies) regardless of whether application for conversion has been made. The rates for any converted insurance are based on the normal and usual rates charged by the present carrier.
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| 91.1.3.6 | Under no circumstances will the University permit an employee to assign the life insurance plan or any portion thereof. | |||
| 91.1.3.7 | Employees who were hired prior to August 1, 1965 and who were covered by the old Prudential Life Insurance Plan shall continue to have the basic amount of coverage (up to the maximum of $6,000) after retirement (under AR II 1.6). The University pays the premium cost of life insurance for these individuals. | |||
| 91.1.3.8 | Persons receiving benefits through the University's Long Term Disability Plan continue to receive basic life insurance coverage and are eligible to participate at the same or a decreased level of optional coverage (if any) in effect on the date of disability until retirement. | |||
| 91.2 | Delegation | |||
| Administration of the group life insurance plan is a function of the Employee Benefits Office of Human Resource Services. | ||||
| 91.3 | Procedure | |||
| 91.3.1 | Information about life insurance is available in the Employee Benefits Office or at the Employee Benefits web site at: https://hr.uky.edu/benefits. | |||
| 91.3.1.1 | Enrollment forms are processed by the Employee Benefits Office. | |||
| 91.3.1.2 | Booklets on life insurance coverage may be obtained from the Employee Benefits Office. | |||
| 91.3.2 | Premium payments for employees enrolled in the optional part of the plan are made through payroll deductions. | |||
| 91.3.3 | An employee going on leave(s) without pay shall make arrangements with the Employee Benefits Office to pay the cost of optional life coverage while on leave or the benefit will terminate. | |||
| 91.3.4 | An employee may cancel or change to a lower optional amount by completing a new enrollment form and submitting the form to the Employee Benefits Office. This change will be effective the first day of the month following receipt of the request. | |||