Employee Life Insurance
Below is a summary of Central Michigan University's employee life and accidental death and dismemberment insurance policy. For full details, please reference the life insurance plan booklet.
| Benefit | Description |
|---|---|
| Term life insurance | The coverage amount of insurance chosen is paid to the beneficiary designated by an employee at the time of death. There is no cash value to term life insurance. |
| Core life | Typically, the amount funded by the University's contribution or a minimum of 1x your current salary (core minimum is based on employee group). |
| Optional life | Additional amounts above the core are available. View your CMU Choices for amounts. |
| Basic accidental death and dismemberment | An amount equal to that selected by you for core life. |
| Optional accidental death and dismemberment | An amount equal to that selected by you for optional life. |
| Reinstatement | If your coverage ends because you are no longer employed by CMU or in an eligible class. You are rehired or return to an eligible class within the same plan year your coverage ends, your own or previously covered dependent(s) coverage will automatically be reinstated. You will not be subject to any eligibility waiting period or evidence of insurability. You cannot reinstate any amount of coverage you or previous dependents continued under a conversion right or portability provision plan; unless you cancel such coverage. |
| Coverage | Enhancements |
| Terminal illness (accelerated benefits) | 80% of the selected benefit amount with a minimum of $3,000 to a maximum of $500,000 for a terminally ill employee whose life expectancy is 12 months or less. |
| Waiver of premium | Premiums are waived for the employee if they become disabled before age 60 and continue to age 70. Employees will then have the option to convert. |
| Guaranteed issues (evidence of insurability) | Employee guaranteed issue amount is three times salary or up to $575,000 on initial enrollment. The overall maximum is $750,000. You can go up one level each year (except four times your annual salary) without evidence of insurability. The core is the amount funded by the University contribution: 1, 1.5, or 2 times the annual salary depending on the employee group (minimum of 1 times salary). |
| 50% reduction of core coverage | Coverage reduces at the end of the plan year in which you attain age 70 on core only if hired after 07/01/1994 and terminates at retirement or disability retirement. This includes AD&D on the core amount. |
| Conversion (life) rates based on age - no conversion on AD&D | You may convert life coverage to an individual whole-life policy with no evidence of insurability. The vendor must file and receive the Conversion form and premium within 31 days. There will be a small set-up policy fee. Conversion is used when losing coverage or applying for a waiver of premium. |
| Portability | An employee may port their coverage when they end their employment, retire or reduce hours and is no longer eligible for group coverage to a term life policy at the preferred rates. It can remain a term policy as long as premiums are made. The vendor must file and receive the portability form and premium within 31 days of termination. Coverage is available through age 75. |
| Coverage | Added values to accidental death and dismemberment |
| Coma benefit | If, as a result of an accident, an employee becomes comatose within 30 days after an accident and remains comatose for 30 days after the waiting period, provides 1% of the principal sum for each month a person remains in a coma. The coma maximum benefit amount equals the principal sum, less all other payments under the AD&D benefit for injury. |
| Critical burn benefit | It pays a benefit if the person is critically burned (over at least 25% of their body), which results in a permanent disfigurement as determined by a physician. Pays the lesser of 5% of the principal sum or the actual cost of reconstructive surgery up to a maximum of $5,000. |
| Daycare benefit | If an employee dies in a covered accident, this benefit provides an annual child daycare expense payment for up to four years. The eligible dependent must be under age 11 at the time of death. The child must be enrolled in a licensed daycare program at the time of the accident or will be attending daycare within 365 days following the accident. The benefit equals 2.5% of the principal sum with a minimum of $1,250 up to a maximum of $2,500. |
| Felonious assault benefit | Covers violent or criminal acts involving employer funds that occur while an employee performs their occupational duties, either in the business premises or while on a business trip. The benefit is 10% of the principal sum up to a maximum of $10,000. |
| Therapeutic counseling benefit | If you sustain an injury that results in a loss, other than loss of life, that is payable under the AD&D benefit, the plan will pay an additional therapeutic counseling benefit if you require therapeutic counseling due to the loss. Must begin within 90 days of the loss and incur no later than one year from the date of loss. |
| Paralysis benefit | The principal sum is payable for covered accidents sustained by the employee resulting in quadriplegia, 75% of the principal sum for paraplegia, or 50% for hemiplegia. |
| Rehabilitation benefit | If a covered loss, other than loss of life, provides a benefit for training expenses incurred within two years of the accident to help prepare the insured person for an occupation in which they would not have engaged, except for the injury. Pays 2.5% of principal sum up to a maximum of $2,500. |
| Adaptive home and vehicle benefit | If you sustain an injury that results in a loss other than a loss of life, payable under the AD&D benefit, the policy will pay an additional adaptive home and vehicle benefit. This benefit pays a benefit for the one-time cost of alterations to your principal residence and/or private automobile to make the residence accessible and or the private automobile drivable or rideable. The cost must be incurred within two years from the date of the accident. |
| Seat belt (only if AD&D coverage is paid first) | Provides an additional 10% of AD&D, with a maximum of $25,000, if the employee dies as a result of bodily injuries caused by a covered accident while driving or riding in a private passenger car and was using the car seat belt at the time of the accident. |
| Air bag (only if AD&D coverage is paid first) | Provides an additional 5% of AD&D with a maximum of $5,000 if the employee dies as a result of bodily injuries caused by a covered accident while driving or riding in a private passenger car that was equipped with an airbag, and was using the car seat belt at the time of the accident. |
| Repatriation | Pays for preparation and transportation of the body for cremation or burial for covered loss of life occurring of the employee outside the state of permanent residence. Pays to a maximum of $5,000. |
| Child AD&D educational benefit (only if AD&D coverage is paid first) | Benefit amount per Academic year for which a Qualified Child is enrolled. 10% of the employee's AD&D insurance to a maximum of $10,000. Students must be: |
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| Coverage | Exclusions |
| Basic life insurance | None. |
| Accidental death and dismemberment (AD&D) | The plan does not cover any loss resulting from:
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