Life Insurance TABLE OF CONTENTS. Introduction... 3 Basic Life Insurance... 3 Amount of Coverage Eligibility... 8 Beneficiary... 8 Coverage...

Transcription

1 Life Insurance TABLE OF CONTENTS Introduction... 3 Basic Life Insurance... 3 Amount of Coverage... 3 Eligibility... 3 Beneficiary... 4 Coverage... 4 Benefits... 4 Conversion Privilege... 4 Claims... 5 Disability Provision: Waiver of Premium for Employees Covered by Basic Life Insurance... 5 Early Retirement... 5 Supplemental Life Insurance Plan... 6 Eligibility... 6 Beneficiary... 6 Coverage... 6 Effective date of Coverage... 6 Limitation... 7 Conversion Privilege... 7 Claims... 8 Disability Provision... 8 Supplemental Accidental Death and Dismemberment Coverage... 8 Eligibility... 8 Beneficiary... 8 Coverage... 9 Effective Date of Coverage... 9 Conversion Privilege... 9 Benefits... 9 Exposure and Disappearance Losses Not Covered Claims Termination of Coverage Spouse s Supplemental Life Insurance Eligibility Beneficiary Coverage Conversion Privilege Claims Limitation

2 Termination of Benefits Spouse s Supplemental Accidental Death and Dismemberment Insurance Eligibility Beneficiary Coverage Benefits Termination of Benefits Business Travel Accident Insurance Eligibility Business Travel Accident Insurance Benefits Government Plans Canada Pension Plan Workers Compensation

3 Introduction Life and Accident Insurance provides a measure of financial security for you and your family if you should die before retirement. The University, or affiliated employer, provides you with Basic Life Insurance coverage and you have the option of applying for additional coverage. The government also provides death benefits from the Canada Pension Plan. Under certain circumstances, accident benefits may also be available from the University s Business Travel Accident Plan and government plans such as the Canada Pension Plan and Workers Compensation. Basic Life Insurance The Basic Life Insurance Plan provides a lump sum benefit to your beneficiary in the event of your death. Amount of Coverage You will be insured for two times your annual earnings rounded to the next highest $1,000 (if not already a multiple of $1,000) to a maximum of $500,000. Eligibility For groups 1 through 8, you are eligible to participate in the University s Basic Life Insurance Plan if you are an employee whose employment will extend for a period of at least 6 months, are working half time or greater and are: Group 1 a Faculty member according to the terms in the Faculty Collective Agreement 2 an out of scope Faculty member 3 a senior administrative staff member 4 an ASPA member according to the terms in the ASPA Collective Agreement 5 an Exempt employee 6 a Research Administrative Staff member or Research Technical and Support Staff member whose grant holder has offered a benefit package 7 a Research Professional employee whose grant holder has offered a benefit package 8 an employee of an affiliated employer who has offered a benefit package (subject to agreement by the University) For group 9, you are eligible to participate in the University s Basic Life Insurance Plan, if you are an employee who works at least half-time and who is: Group 9 a member of CUPE Local 1975 and actively employed as a permanent or seasonal employee, or - 3 -

4 a permanent or seasonal employee who is temporarily occupying a term position, or a term employee who has been hired into a term of 6 months or greater, or an employee of CUPE Local 1975 office, Prairie Swine Centre Inc., or St. Thomas More College. Beneficiary When you are hired, you will be asked to complete a beneficiary designation form. You may change your beneficiary at any time by completing a Change of Beneficiary card available upon request from Human Resources. It is your responsibility to keep your beneficiary designation up to date. If you do not designate a beneficiary, benefits will be paid to your estate. Coverage For groups 2, 4, 5 6 and 8 and 9 you will be covered under the Basic Life Insurance plan after you have been continuously employed for three months from your date of eligibility and coverage will continue until your employment terminates or your retirement date. For groups 1, 3 and 7, you will be covered under the Basic Life Insurance plan beginning your first day of eligibility and coverage will continue until your employment terminates or your retirement date. Employees who go on a leave of absence other than lay-off or seasonal lay-off prior to completing the waiting period, will not be covered until the first day following three months of continuous service commencing from their date of return. If you are absent from work on the date your coverage would otherwise have taken effect, coverage will take effect on your return to work. If you leave the University, or affiliated employer, and are rehired as an eligible employee within six months, you will be covered under the Plan without having to complete the three-month waiting period. Benefits In the event of your death from any cause at any time or place while you are insured as an employee, your beneficiary or estate will receive the amount of your life insurance in effect at date of death. Conversion Privilege If your Basic Life Insurance is terminated, your coverage will be continued without cost for a 31-day conversion period. During this time, you may convert your coverage to an individual policy without providing medical evidence. For information on conversion, - 4 -

5 contact Human Resources for the insurance company agent s name and phone number within the 31 day conversion period. The amount of the individual policy will be limited to the lesser of: $200,000.00; or the amount of Basic Life Insurance in effect at the date of termination, or the difference between the amount of Basic Life Insurance in effect at the date of termination and any group insurance for which you become insured within the 31 day conversion period. The individual policy will not offer any disability or double indemnity benefits. The premium rate will be based on your age, sex and the customary rate for the type of insurance to which you convert. If death occurs within the 31 day conversion period, your beneficiary or estate will receive the amount to which you would have been eligible to convert. Claims In the event of your death, Human Resources will assist your beneficiary or executor in submitting a claim. Claims should be submitted as soon as possible. Disability Provision: Insurance Waiver of Premium for Employees Covered by Basic Life If you become totally disabled while insured under the Basic Life Insurance Plan at the University of Saskatchewan and before your 65 th birthday and are unable to work at your own or any other job, an application will be filed on your behalf to have your Basic Life Insurance continue without payment of premium until you recover, retire, or reach your normal retirement date. Application will be made before the end of your first year of disability. You will be required to submit medical proof of your disability. Please contact Human Resources and/or the Health and Wellness Resource Centre for more information. You are considered totally and permanently disabled if you have been, are and will be permanently, continuously and wholly prevented by illness or injury, other than pregnancy, from performing any work for compensation or profit or from following any gainful occupation. Early Retirement Group 1 employees (see Eligibility) who retire before their normal retirement date may elect to continue their basic life insurance until their normal retirement date (see Post- Retirement Spending Account plan summary for details). The University will pay the premiums

6 Supplemental Life Insurance Plan The Supplemental Life Insurance plan allows you to purchase additional life insurance at competitive group rates to suit your personal situation. These insurance premiums are age related and rates vary accordingly. Eligibility You are eligible to participate in the Supplemental Life Insurance Plan if you are an employee who is eligible for the Basic Life Insurance. If you are absent from work on the date your coverage would have otherwise taken effect, your coverage will take effect when you return to work. Beneficiary When you apply for Supplemental Life Insurance, you will be asked to specify the name of your beneficiary. You may change your beneficiary at any time by completing a Change of Beneficiary form available from Human Resources upon your request. It is your responsibility to keep your beneficiary designation up to date. If you do not designate a beneficiary, benefits will be paid to your estate. Coverage Supplemental Life Insurance is available under two options: Option A You may elect coverage in the amount of 1x s 2x s 3x s 4x s, 5x s, or 6x s your basic annual earnings rounded to the next even $1,000 (i.e. $43,200 would be rounded to $44,000) to a maximum benefit of $500,000. Option B You may elect coverage in multiples of $50,000. The maximum benefit under Option B is $500,000. Effective date of Coverage You may apply for Supplemental Life Insurance at any time. Application forms are available from Human Resources. If you apply for Supplemental Life Insurance during the first 90 days of eligibility, your coverage (to a maximum of $500,000) will take effect on the date you apply, without evidence of insurability. If you apply for Supplemental Life Insurance within 90 days of acquiring a dependent through marriage, birth or adoption, or legal guardianship of children, no evidence of insurability will be required and your coverage (to a maximum of $500,000) will be effective on the date you acquire the dependent or the date you complete the application, whichever is later

7 If you apply for Supplemental Life Insurance in situations other than those described above, evidence of insurability is required and your coverage will take effect when the insurance company has approved the evidence. Satisfactory medical evidence of insurability usually means simply completing a questionnaire about your medical history. However, the insurance company may also request that you be examined by a doctor or that you have x-rays, blood tests, or other procedures performed to determine your medical condition. Changes in the amount of Supplemental Life Insurance due to a change in salary will take effect on the first of the month coincident with or next following the date of the salary change. This does not apply to retroactive salary adjustments. Once your application for coverage has been approved by the insurance company, you will be covered in the event of your death from any cause at any time or place as long as you are insured as an eligible employee. Limitation If death occurs as a result of suicide, while sane or insane, the amount of Supplemental Life Insurance payable will be limited to the amount of Supplemental Life Insurance which has been in effect for one or more years. Conversion Privilege If a Member s Supplementary Life Insurance terminates or reduces and the conditions outlined below are satisfied, that person will be eligible to continue all or part of the insurance by converting to an individual policy. The insured person must satisfy the following conditions to be eligible for an individual policy: a) application for the individual policy must be received by the insurance company within 31 days after insurance under the Group Policy terminates or reduces; and b) the first premium must be enclosed with the application. The maximum amount that may be converted is the lesser of: a) $200,000, and b) the amount of insurance that terminated less the amount replaced by any Group Policy within 31 days of the termination

8 Claims In the event of your death at anytime or place while insured, your beneficiary or estate will receive the amount of your Supplemental Life Insurance in effect at the date of death. In the event of your death, Human Resources will assist your beneficiary or executor in submitting a claim. Disability Provision If you become totally and permanently disabled while insured and before your normal retirement date, and the disability has continued for at least 90 days, your Supplemental Life Insurance will continue without further premium payments until the earliest of the following: a) the date you are no longer totally and permanently disabled, or b) the date you fail to take a medical examination required by the insurance company, or c) the date you fail to provide proof of continuing disability, or d) your normal retirement date. You are considered totally and permanently disabled if you have been, are and will be permanently, continuously and wholly prevented by illness or injury, other than pregnancy, from performing any work for compensation or profit or from following any gainful occupation. Initial proof of disability must be submitted to the insurance company within 12 months of the date of disability. Periodic proof of continuing disability may be required by the insurance company. Supplemental Accidental Death and Dismemberment Coverage Eligibility You may elect additional coverage for accidental injuries by participating in the Supplemental Accidental Death and Dismemberment Insurance plan. These insurance premiums are based on a flat rate amount. Beneficiary When you apply for Supplemental Accidental Death and Dismemberment Insurance, you will be asked to specify the name of your beneficiary. You may change your beneficiary at any time by completing a Change of Beneficiary form available from Human Resources upon your request. It is your responsibility to keep your beneficiary designation up to date. If you do not designate a beneficiary, benefits will be paid to your estate

9 Coverage You may elect Supplemental Accidental Death and Dismemberment Insurance coverage under the same options as described for Supplemental Life Insurance. Effective Date of Coverage Your coverage under the Supplemental Accidental Death and Dismemberment Insurance plan will take effect the date you apply. Conversion Privilege There is no conversion privilege for Supplemental Accidental Death and Dismemberment Insurance. Benefits In the event of your accidental death, the Principal Sum will be paid to your beneficiary or estate. Benefits will also be paid to you if you suffer any of the losses in the following table due to an accident: Covered Loss Percentage Of Benefit Amount Payable Loss of Life 100% Loss of or Loss of Use of Both Hands or Both Feet 100% Loss of Sight of Both Eyes 100% Loss of One Hand and One Foot 100% Loss of One Hand and Sight of One Eye 100% Loss of One Foot and Sight of One Eye 100% Loss of Hearing in Both Ears and Speech 100% Loss of or Loss of Use of One Arm or One Leg 75% Loss of or Loss of Use of One Hand or One Foot 66 2/3% Loss of Sight of One Eye 66 2/3% Loss of Speech or Hearing in Both Ears 66 2/3% Loss of Thumb and Index Finger or at Least Four Fingers 33 1/3% of One Hand Loss of All Toes of One Foot 25% Loss of Hearing in One Ear 25% Hemiplegia, Paraplegia or Quadriplegia 200% Loss of hand means complete severance at or above the wrist joint, but below the elbow. Loss of foot means complete severance at or above the ankle joint, but below the knee joint

10 Loss of arm means complete severance at or above the elbow. Loss of leg means complete severance at or above the knee joint. Loss of sight means the entire and irrevocable loss of sight of the eye. Loss of speech means the entire and irrevocable loss of speech which does not allow audible communication of any degree. Loss of thumb and index finger means the complete severance between the wrist and the interphalangeal and proximal interphalangeal joints of one hand, respectively. Loss of finger means the complete severance at or above the knuckles joining the finger to the hand. Loss of toe means the complete severance at or above the knuckle joining the toe to the foot. Hemiplegia means paralysis of one side of the body. Paraplegia means paralysis of the lower portion of the body (including the bowel and bladder) and both lower limbs due to injury of the spinal cord. Quadriplegia means paralysis of four limbs. Exposure and Disappearance If a person suffers a Loss specified in the Table of Covered Losses due to unavoidable exposure to the elements of nature after a conveyance in which the person was travelling, sinks, makes a forced landing or is lost, wrecked or stranded, such loss will be deemed to have occurred as a result of an accidental injury. A person is deemed to have suffered death by accidental injury if his body is not found within 365 days after a conveyance in which the person was travelling, sinks, makes a forced landing or is lost, wrecked or stranded. Losses Not Covered No benefit is payable for any loss directly or indirectly related to: a) suicide or self-inflicted injury, whether the person is sane or insane; b) war, insurrection, the hostile actions of any armed forces, or participation in a riot or civil commotion; c) an infection (except pyogenic infections from an accidental cut or wound), illness or disease or the medical treatment of any illness or disease, or bodily or mental infirmity; d) riding in, boarding or leaving, or descending from, any aircraft as a pilot, operator or member of the crew;

11 e) riding in, boarding or leaving, or descending from, any aircraft which is owned, operated, or leased by or on behalf of the Employer. This exclusion will not apply to chartered flights. f) the committing of or attempt to commit an assault or criminal offence; or g) injuries sustained while operating a motor vehicle, either while under the influence of any intoxicant or if the person s blood contained more than 80 milligrams of alcohol per 100 millilitres of blood at the time of injury. Claims Human Resources has the necessary claim forms and will provide assistance in completing them. Termination of Coverage In addition to the general provisions for termination of coverage, your Supplemental Accidental Death and Dismemberment Insurance will terminate when your eligibility for Supplemental Life Insurance terminates, when you request cancellation, or when you fail to make a required premium payment. Spouse s Supplemental Life Insurance Eligibility You can insure your spouse under the Spouse s Supplemental Life Insurance plan. Your eligible spouse is your legal or common-law spouse (the person with whom you have cohabited with for one year and who is publicly represented as your legally married spouse). Your spouse cannot be insured under Spouse s Supplemental Life Insurance if he or she is insured under the Supplemental Life Insurance Plan as a member. Beneficiary When you apply for Spouse s Supplemental Life Insurance, your spouse will be asked to specify the name of the beneficiary. Your spouse may change beneficiary at any time by completing a Change of Beneficiary form available from Human Resources upon request. It is your spouse s responsibility to keep the beneficiary designation up to date. If your spouse does not designate a beneficiary, benefits will be paid to your spouse s estate. Coverage Coverage for your spouse is available under two options: Option A You may elect spousal coverage in the amount of 1x s, 2x s, 3x s, 4x s, 5x s or 6x s your basic annual earnings rounded to the next event $1,000 (i.e. $43,200 would be rounded to $44,000) to a maximum benefit of $500,000. Option B

12 You may elect spousal coverage in multiples of $50,000. The maximum benefit under Option B is $500,000. If you apply for Spouse s Supplemental Life Insurance during the first 30 days of eligibility, the coverage (to a maximum of $500,000) will take effect on the date you apply, without evidence of insurability. If you apply for Spouse s Supplemental Life Insurance within 30 days of acquiring a dependent through marriage, birth or adoption, or legal guardianship of children, no evidence of insurability will be required and your coverage (to a maximum of $500,000) will be effective on the date you acquire the dependent or the date you complete the application, whichever is later. Conversion Privilege If a Spouse s Supplementary Life Insurance terminates or reduces and the conditions outlined below are satisfied, that person will be eligible to continue all or part of the insurance by converting to an individual policy. The insured person must satisfy the following conditions to be eligible for an individual policy: a) application for the individual policy must be received by the insurance company within 31 days after insurance under the Group Policy terminates or reduces; and b) the first premium must be enclosed with the application. The maximum amount that may be converted is the lesser of: a) $200,000, and b) the amount of insurance that terminated less the amount replaced by any Group Policy within 31 days of the termination. Claims In the event of the death of your spouse at any time or place, the coverage amount in effect will be paid to the named beneficiary. Human Resources has the necessary claim forms and will provide assistance in completing them. Limitation If death occurs as a result of suicide, while sane or insane, the amount of Supplemental Life Insurance payable will be limited to the amount of Supplemental Life Insurance which has been in effect for one or more years. Termination of Benefits In addition to the general provisions for termination of coverage, your Spouse s Supplemental Life Insurance will terminate when your eligibility for Supplemental Life Insurance terminates, when you request cancellation, or when you fail to make a required premium payment

13 Spouse s Supplemental Accidental Death and Dismemberment Insurance Eligibility You may also insure your spouse under the Spouse s Supplemental Accidental Death and Dismemberment Plan at the same premium rate as Member Supplemental Accidental Death and Dismemberment coverage. Beneficiary When you apply for Spouse s Supplemental Accidental Death and Dismemberment Insurance, your spouse will be asked to specify the name of the beneficiary. Your spouse may change beneficiary at any time by completing a Change of Beneficiary form available from Human Resources upon request. It is your spouse s responsibility to keep the beneficiary designation up to date. If your spouse does not designate a beneficiary, benefits will be paid to your spouse s estate. Coverage You may elect Spouse s Supplemental Accidental Death and Dismemberment Insurance coverage under the same options as described for Supplemental Accidental Death and Dismemberment Insurance. Spouse s Supplemental Accidental Death and Dismemberment Insurance will take effect on the latter of the date Spouse s Supplemental Life Insurance becomes effective or the date you apply for coverage. Benefits In the event of your spouse s accidental death, the Principal Sum will be paid to the named beneficiary. Benefits for other losses, as described under Supplemental Accidental Death and Dismemberment Insurance, will be paid to you. Definitions of Loss and Exclusions and Limitations are as described under Supplemental Accidental Death and Dismemberment Coverage. Termination of Benefits In addition to the general provisions for termination of coverage, your Spouse s Supplemental Accidental Death and Dismemberment Insurance will terminate when your eligibility for Supplemental Life Insurance terminates, when you request cancellation, or when you fail to make a required premium payment

14 Business Travel Accident Insurance Eligibility You are eligible for Business Travel Accident Insurance coverage beginning on the date you are hired. Business Travel Accident Insurance Benefits You are covered for accidental death occurring anywhere in the world, 24 hours a day while travelling on authorized University business. You are covered while flying as a passenger on a scheduled airline or any other aircraft that has a standard airworthiness certificate and is not owned or operated by the University. In the event of your accidental death while travelling on authorized University business, your estate will receive $100,000. This benefit is in addition to other life and accident insurance benefits which may be payable. There is an overall maximum of $500,000 payable for all losses resulting from the same accident, regardless of the number of insured persons involved. In the event of a single accident resulting in the death of more than one employee, the benefit will be pro-rated among the estates within the $500,000 maximum. Benefits are also provided for accidental loss of limb, sight or hearing while travelling on University business. These benefits are detailed in the Specific Loss Accident Indemnity section of the Business Travel Accident Insurance Plan policy. The Corporate Administration Office has the necessary claim forms and will provide assistance in completing them. Business Travel does not include everyday travel to and from work. Government Plans Canada Pension Plan A lump sum death benefit may be payable to your spouse or estate. In addition, a survivors pension may be payable to your spouse or an orphan s pension may be payable to your dependent children. Workers Compensation If your death is the result of a work-related accident, a lump sum death benefit will be paid to your spouse. In addition, a specified monthly amount will be paid to your spouse or dependent children. This description is intended only as a summary of the Life and Accident Insurance Plans sponsored by the University of Saskatchewan. In the event of any misunderstanding or

15 discrepancy, benefits will be paid according to the terms of the official plan documents and applicable legislation. The Basic Life Insurance Plan is underwritten by Sun Life, Policy No The Supplemental Life Insurance Plan is underwritten by Manulife, Policy The University of Saskatchewan Faculty Association is the policyholder for this plan The Business Travel Accident Insurance Plan is underwritten by The Citadel, Policy