Benefits

Frequently Asked Questions ( Life Insurance July 1, 2008 )

Who will be our new life and AD&D insurance carrier as of July 1, 2008?
What are the new coverage options and rates available under the Optional Employee-Paid Life plan?

What are the new coverage options and rates available under the Voluntary AD&D plan?

If I am currently enrolled in Optional Employee-Paid Life, how will my coverage be transitioned under Prudential effective July 1, 2008?

Who will be our new life and AD&D insurance carrier as of July 1, 2008?

After a formal bid process and careful review of several potential carriers, The Prudential Insurance Company of America was selected as the carrier able to provide the best levels of coverage at competitive pricing.

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What are the new coverage options and rates available under the Optional Employee-Paid Life plan?  

Employee:  1 to 8 times Employee's Base Annual Earnings (maximum benefit of $2,000,000)

Spouse:  $10,000 or increments of $25,000 up to $200,000

Children:  Increments of $5,000 up to $25,000

Rate Chart

Premium Calculator

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What are the new coverage options and rates available under the Voluntary AD&D plan?

Employee:  1 to 8 times Employee's Base Annual Earnings (maximum benefit of $1,000,000)

Dependent:

Spouse Only:  60% of employee's AD&D coverage if no children are covered under family coverage

Children Only:  20% per child of employee's AD&D coverage if no spouse is covered under family coverage

Spouse and Children:  50% for spouse and 15% per child of employee's AD&D coverage

Rate Chart

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If I am currently enrolled in Optional Employee-Paid Life, how will my coverage be transitioned under Prudential effective July 1, 2008?

Employee Coverage:  If you are currently enrolled for Optional Employee-Paid Life insurance benefits as the employee, during this Open Enrollment period, your coverage will be automatically transitioned from the former carrier over to Prudential.  If the amount of insurance benefit you are currently enrolled for is more or less than a multiple of your base annual earnings, then your coverage will automatically be transitioned upward to the next highest multiple of your base annual earnings.  (If you are currently enrolled with coverage for more than 8 times your base annual earnings, your coverage will freeze at its current level and you will retain the same level of coverage you have now in the transition.)  In addition to the transition, you can increase your coverage by one additional level without providing evidence of insurability.  Evidence of insurability will be required for increases greater than one level this year and for ALL increases in future years.

Spouse/Children Coverage:  If you currently cover a spouse under optional employee-paid life insurance, that coverage will automatically be transitioned to Prudential.  During the transition, your spouse's coverage will be automatically increased from the $5,000 benefit level allowed by the current plan up to $10,000 - the minimum benefit level for spouses under the Prudential plan.  In addition to the transition, you can increase your spouse's coverage by one additional level without providing evidence of insurability.  Evidence of insurability will be required for increases greater than one level this year and for ALL increases in future years. 

If you currently cover children on your Optional Employee-Paid Life insurance, their coverage will automatically be transitioned to Prudential during Open Enrollment.  The benefit level will automatically be increased from the $2,000 benefit level allowed by the current plan up to $5,000 - the minimum benefit level for children under the new Prudential plan.  In addition to the transition, you may increase your child's level of insurance during Open Enrollment.  Evidence of insurability is not required for children.

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I noticed the dependent coverage for Optional Employee-Paid Life is separated.  What will happen during this transition and is there anything I should be aware of?

In past years, Optional Employee-Paid Life insurance coverage for spouses and children were grouped into one coverage category: family.  Prudential allows you to separately cover a spouse OR children.  However, when previous coverage transitions to Prudential, the online enrollment system will automatically translate family to mean spouse AND children.  If you only want to cover a spouse OR children, you will need to unselect the parties you don't want on the policy while in the open enrollment screen.  During the online open enrollment process, if you cancel spouse and/or dependent coverage, you will be asked to complete a cancellation coverage form and send to Human Resources Benefits office.

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If I am not currently enrolled in Optional Employee-Paid Life, can I enroll during the 2008 Open Enrollment period?

Employee:  If you have never taken advantage of the opportunity to enroll in Optional Employee-Paid Life insurance benefits in the past, you can enroll for coverage equal to 1 times your base annual earnings.  However, if this amount exceeds $500,000, you will be required to provide evidence of insurability.  Or you can apply for coverage up to 8 times your annual base earnings (up to a maximum of $2,000,000) if you provide evidence of insurability.  If you apply for coverage greater than 1 times your base annual earnings and provide evidence of insurability but are denied, you will still be able to enroll for guaranteed coverage at 1 times your annual base earnings up to the $500,000 maximum.

Dependents:  During this Open Enrollment period only, you can purchase coverage for your previously uncovered spouse at a guaranteed amount of $10,000 without providing evidence of insurability.  You can also apply for higher levels of coverage but you will be required to provide evidence of insurability.  If you apply for an amount of coverage greater than $10,000 and that coverage is denied, you will still be able to enroll your spouse at the guaranteed issue amount of $10,000 this year.  Please note that in future Open Enrollment years, evidence of insurability will be required to add or increase coverage for spouses at ANY level.

You can also add previously unenrolled eligible children to your coverage this year in increments of $5,000 up to $25,000.  Evidence of insurability is not required for children.

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Will I be able to increase my Optional Employee-Paid Life coverage in the future?

You will be able to increase your coverage in future years.  However, you will then need to provide evidence of insurability and your application may be denied.  The 2008 Open Enrollment will be the only year in which you will be able to increase one level of coverage (not to exceed $500,000) without having to provide evidence of insurability.

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If I am currently enrolled in Voluntary AD&D, how will my coverage be transitioned under Prudential effective July 1, 2008?

Employees and their dependents who are already enrolled under Voluntary AD&D will automatically transition to Prudential during Open Enrollment with coverage transitioned upward to the highest multiple of base annual earnings.  Individual employee and employee plus family coverage is available.

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If I am not currently enrolled in Voluntary AD&D, can I enroll during the 2008 Open Enrollment period?

If you are not currently enrolled, you will have an opportunity to enroll for coverage between 1 and 8 times your base annual earnings.  Benefit levels vary by type of insurance selected (individual or family) and the extent of injury.  Evidence of insurability is not required.

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In reading the 2008 Benefits Open Enrollment Edition of the Source, I see references to the Basic Employer-Paid Life Insurance.  Is this a new name for Expanded Life and, if so, are there any changes to the coverage?

Yes, during this transition we have renamed our current "Expanded Life" to "Basic Employer-Paid Life".  No changes have been made to this benefit which provided eligible employees with coverage in the amount equal to the employee's base annual earnings or $50,000, whichever is less. 

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With the transition to Prudential July 1, 2008, do I need to complete a new beneficiary form?

No, if you have a beneficiary form on file at Human Resources you will not need to complete a new beneficiary form.  We do, however, strongly recommend that you update your beneficiary form periodically.  Please print a beneficiary form and send to:  MSU Benefits Office, 1407 S. Harrison Road, Nisbet Building, East Lansing, Michigan 48823-5239

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Where can I find additional information regarding the transition to Prudential?

For additional information regarding Optional Employee-Paid Life and Voluntary AD&D, please visit hr.msu.edu or contact Prudential's customer service department at (877) 232-3555.  You can also read the April 2008 Open Enrollment Source - Active Employees Version for further information.

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Do I still get life insurance benefits from the University as an MSU retiree?

Basic Employer-Paid Life:

Coverage ends upon your retirement. You can convert the coverage to a private policy if you apply and pay the first premium payment to Prudential within 31 days after your MSU coverage ends. Conversion information and cost can be received by calling Prudential at 1-877-232-3555.

Optional Employee-Paid Life:
If enrolled, coverage can be continued up to age 70 through MSU's group policy if premium payments are paid to MSU.  After age 70, you have the option of converting your coverage and your dependent's coverage, if applicable.  You must apply and pay the first premium payment to Prudential within 31 days after your MSU group policy ends.  Conversion information and costs can be received by calling Prudential at 1-877-232-3555.  Premiums will change once your coverage has been converted.

Voluntary Accidental Death and Dismemberment (AD&D):

Coverage will end on the date you retire.

Travel Accident:

Coverage will end on the date you retire.

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What will be the effective date of my life insurance policies as a new hire or newly eligible employee?

Basic Employer-Paid Life: 

The effective date of your coverage begins upon your initial appointment date.  If you are not actively at work the coverage will begin upon your return to work.

Optional Employee-Paid Life:

If you are eligible and enroll during the first 60 days of employment or appointment to an eligible status, you may choose up to 3 times your base annual earnings (up to $500,000) without having to complete an evidence of insurability.  If you choose more than 3 times your base annual earnings (or any level over $500,000), you must complete an evidence of insurability.  If you are denied through this process, you will still be able to enroll in the guaranteed issue amount of 3 times your base annual earnings. 

If you are applying for coverage after 60 days of becoming eligible, your next opportunity to enroll is during the annual Open Enrollment period.  Enrollment under the plan will require evidence of insurability - no matter what level you select. 

Voluntary Accidental Death and Dismemberment:

Coverage will be effective the day that you enroll or the first day of active work, whichever is later.

Travel Accident:

Coverage is effective immediately and provides employees with coverage while on authorized university travel.