Benefits Plans - Group Life Insurance: Optional Group Term Life Insurance

If you are enrolled in the University Life Insurance Plan and want additional life insurance coverage, you can enroll in the Optional Life Insurance Plan. The Optional Plan covers you only.

Enrollment

Enrollment is not automatic for the Optional Plan. You must enroll in order to participate.

  1. As a new hire to the University. You have 30 days to enroll. If you enroll as a new hire, you will not be required to provide evidence of insurability (a health statement) as long as Optional coverage is less than $500,000. Obviously, this is to your advantage and will save you time and effort.
  2. As a newly eligible faculty or staff member. As you become newly eligible for life insurance due to a promotion or job change that qualifies you for life insurance benefits, you will receive an application form. If you enroll within the 30 days allowed, you will not be required to provide evidence of insurability (a health statement) as long as coverage is less than $500,000.
  3. At any time. After the 30 days provided for (1) and (2) above expires, you can apply to enroll at any time you choose, but you will be required to furnish evidence of insurability that is satisfactory to the MetLife Insurance Company of America. MetLife may also require a physical examination.

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Optional Plan Coverage Options

If you are enrolled in the University Plan and want additional coverage, these are your coverage options:

  • No coverage
  • $5,000 (minimum)
  • $50,000
  • 1 times salary
  • 2 times salary
  • 3 times salary
  • 4 times salary
  • 5 times salary
  • 6 times salary (to a maximum of $1 million).
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Faculty and Staff Member Monthly Rates

View Optional Life Insurance Rates for your monthly cost.

Application Form

The Optional Group Term Life Insurance application form is available for download on this site or from any Benefits Office. Complete the form and return it to the Benefits Office, either by U.S. mail, Campus Mail, or by fax to 734-763-0363.

Health Statement

If you enroll within 30 days of the date you become eligible and choose less than $500,000 of coverage, you will not need to provide a satisfactory health statement as proof of insurability. Therefore, it is to your advantage to enroll in life insurance at the time you become eligible, either when you are a new faculty or staff member at the University or when you become newly eligible for this benefit (as the result of a change in appointment, etc.).

Your Coverage is Capped at $500,000 until a Satisfactory Health Statement is Received
If your salary increase results in your coverage increasing above $500,000, you are capped at a flat $500,000 until you furnish evidence of insurability (health statement) that is satisfactory to MetLife.

In all other cases, you will need to furnish evidence of insurability that is satisfactory to the MetLife Insurance Company of America. MetLife may also require a physical examination.

Proof of good health consists of either a short-form health statement or a long-form health statement.

The type of statement you need depends on the amount of coverage you purchase. View Health Statements for more information.

You may enroll in the University Plan first (automatic to new hires and newly eligible employees) and then add the Optional Plan at a later date. You would need to complete a long-form health statement.

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Effective Date

If you are newly eligible, your insurance will become effective on your service date or first day you are newly eligible if you enroll within 30 days. If you are not actively at work on the day your insurance would otherwise become effective, you will become insured on the day you return to active work. If proof of insurability is required, your insurance will become effective on the day the health statement is approved by MetLife, the Benefits Office has been notified, and you are actively at work.

Your Beneficiary

When you elect life insurance coverage for the first time, you must complete the beneficiary designation on the Change/Update of Beneficiary for Group Life Insurance form. You may choose any beneficiary you wish, such as a family member, a friend, a trust, or an organization. You can name a single beneficiary or you can name two or more joint beneficiaries to receive the insurance payment. You may change your beneficiary at any time.

If you do not designate a beneficiary, or if none of the beneficiaries you name survives you, death benefits will be paid to the first of the following:

  • Your surviving spouse/OQA;
  • Surviving children in equal shares;
  • Surviving parents in equal shares;
  • Surviving siblings in equal shares;
  • Estate

If you enroll in the plan and you change the amount of your coverage at a future date, the beneficiary you designate now will remain your beneficiary until you make a change. If you wish to change your beneficiary, complete and submit a Change/Update of Beneficiary for Group Life Insurance form.

Will Preparation Services

If you are enrolled in the Optional Life Insurance Plan, MetLife fully covers the legal fees associated with the preparation or updating of a will by one of the Hyatt Legal Plan attorneys. Contact Hyatt at 800-821-6400 for additional information.

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When You Retire

When you retire from the University, you will be covered under the Retiree Group Term Life Insurance Plan.

During retirement the amount of insurance will decrease as your age increases until you reach age 66, at which time coverage at $2,000 becomes effective and will remain in effect for the rest of your life. View Your Coverage in Retirement for a table showing your insurance amounts.

Under present policy, which is subject to change, the entire cost of your life insurance coverage after you retire from the University is paid by the University. Retirees with a date of service on or after July 1, 1988 will pay the full cost of benefits up to the month they turn age 62.

When Changes Occur

How Benefits Are Paid

More Information

For more information about the Optional Life Insurance Plan, view the University Group Term Life Insurance Plans book (PDF), or call the HR/Payroll Service Center.

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Limitations
The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend or terminate them.