Benefits Summaries & Orientation

Life Insurance

Grand Valley State University Life Insurance Standard Insurance Company
Effective January 1, 2008

Base Life Insurance

The University provides group term life and accidental death and dismemberment coverage. The basic coverage is equal to your base salary including commissions if applicable up to a maximum of $200,000.

Life insurance coverage is effective upon employment and terminates on the last day of employment. However, you will be given the opportunity to convert the University policy to a personal policy and assume payment for premiums. You have 31 days after termination to apply for a personal policy. The life insurance company will continue your coverage during the 31-day period if you elect to continue coverage.

Beneficiary Designation

Your primary beneficiary is the first person(s) that will receive the benefit of your life insurance policy from Grand Valley should you pass away while employed.
The Secondary Beneficiary is the person(s) that will receive the life insurance benefit from Grand Valley when you pass away and your Primary Beneficiary (ies) has passed away also.

Per stirpes is a method for distributing the estate of a deceased individual. Per stirpes (which is Latin for "per branch") specifies that each branch of the deceased person's family receives an equal share of the estate, regardless of how many people are in that branch. For example, if A and B are the children of the deceased, but B is also deceased leaving children C, D, E, F and G (the grandchildren of the original person), then A would receive one half of the estate and each of B's 5 children would receive one-tenth of the estate (essentially, they are dividing B's half). Per stirpes is different from per capita, because per capita weighs each person equally, rather than each branch equally.

 Faculty/Staff Optional Life

Within the first 30 days of hire at GVSU, Faculty/Staff may purchase supplemental life insurance in $10,000 increments, up to 3 times Base Salary or $250,000, whichever is less. If the faculty/staff elect this additional life insurance within the first 30 days of employment, it is a guaranteed policy, effective on the date of hire. (The following guaranteed issue amounts apply: Under age 60 - 3 times Base Salary up to $250,000; Ages 60-69 - $40,000; Ages 70 to 79 - $20,000; Ages 80 and over $1,000.)

With an application from Standard Insurance Company obtained through GVSU Human Resources, additional term life insurance coverage may be purchased at anytime in $10,000 increments, up to the lesser of 5 times Base Salary or $500,000, effective on the date of approval from Standard Insurance Company.

Faculty/Staff have the option of purchasing Accidental Death and Dismemberment Benefits (AD & D) equal to the amount of the supplemental term life coverage requested. In addition to providing twice the benefit for accidental death, AD & D also provides indemnity against accidental loss of limb or eyesight. Rates are based upon smoker versus non-smoker with AD & D versus without AD & D.

Application

To apply for this benefit, or increase the amount you are currently insured for, you must complete a declaration of insurability form. Coverage will become effective upon date of approval from Standard Insurance Company.

Your coverage will end on your last day of employment or retirement, or when eligibility is lost. At this time, if applicable, you will have the opportunity to continue your life insurance policy at the group portability rates.

Please refer to the rate charts on the next page to find your rate and calculate your deduction per paycheck. 

Semi-Monthly Payroll Deduction per $10,000 of Insurance
Faculty Member Rates (Premiums are deducted over the academic year.)

Age

Non-Smoker Rate

Smoker Rate

Without AD& D

With AD&D

Without AD& D

With AD&D

Under 30

$0.17

$0.30

$0.27

$0.40

30-34

$0.23

$0.37

$0.33

$0.47

35-39

$0.33

$0.47

$0.47

$0.60

40-44

$0.53

$0.67

$0.73

$0.87

45-49

$1.00

$1.13

$1.20

$1.33

50-54

$1.77

$1.90

$1.97

$2.10

55-59

$2.97

$3.10

$3.17

$3.30

60-64

$3.87

$4.00

$4.03

$4.17

65-69

$8.00

$8.13

$9.67

$9.80

70+

$18.33

$18.47

$21.67

$21.80

Bi-Weekly Payroll Deduction per $10,000 of Insurance
Staff Member Rates (Premiums are deducted over the calendar year.)

Age

Non-Smoker Rate

Smoker Rate

Without AD& D

With AD&D

Without AD& D

With AD&D

Under 30

$0.13

$0.23

$0.20

$0.30

30-34

$0.18

$0.28

$0.25

$0.35

35-39

$0.25

$0.35

$0.35

$0.45

40-44

$0.40

$0.50

$0.55

$0.65

45-49

$0.75

$0.85

$0.90

$1.00

50-54

$1.33

$1.43

$1.48

$1.58

55-59

$2.23

$2.33

$2.38

$2.48

60-64

$2.90

$3.00

$3.03

$3.13

65-69

$6.00

$6.10

$7.25

$7.35

70+

$13.75

$13.85

$16.25

$16.35


Supplemental life insurance payroll deductions change at the beginning of the year during which a participant advances from one age bracket to the next.
Optional Spouse/Household member Coverage

 ***Must purchase additional Faculty/Staff Coverage to be eligible***

Faculty/Staff who elect supplemental life insurance coverage for themselves also have the option to purchase coverage for their spouses or household members. Within the first 30 days of hire at GVSU, Faculty/Staff may elect spouse/household member coverage in $5,000 increments, up to 50% of the Faculty/Staff election or $25,000, whichever is less. If the faculty/staff member elects the optional spouse/household member coverage within the first 30 days of employment, it is a guaranteed policy effective on the date of hire. (The following guaranteed issue amounts apply: Under age 60 - $25,000; Ages 60-69 - $10,000. Spouse coverage terminates when the spouse reaches age 70.)

With an application from Standard Insurance Company obtained through GVSU Human Resources, additional coverage may be elected at anytime in $5,000 increments, up to the lesser of 50% of the faculty/staff election or $150,000, effective on the date of approval from Standard Insurance Company.

18 pay Semi-Monthly Payroll Deductions - Spouse/ Household member Coverage(Per $5,000 of coverage, 50% of Employee coverage up to $150,000)

Age

Rate

Under 25

$0.19

25-29

$0.23

30-34

$0.30

35-39

$0.34

40-44

$0.38

45-49

$0.57

50-54

$0.87

55-59

$1.63

60-64

$2.50

65-69

$4.80

 

24 pay Bi-Weekly Payroll Deductions - Spouse/ Household member Coverage (Per $5,000 of coverage, 50% of Employee coverage up to $150,000)

Age

Rate

Under 25

$0.14

25-29

$0.17

30-34

$0.22

35-39

$0.25

40-44

$0.28

45-49

$0.42

50-54

$0.64

55-59

$1.19

60-64

$1.83

65-69

$3.52

Optional Child Coverage
***Must purchase additional Faculty/Staff Coverage to be eligible***

Faculty/Staff who elect supplemental life insurance coverage for themselves also have the option to purchase coverage for their children. Coverage may be elected in $2,000 increments, up to the lesser of 50% of the faculty/staff election or $10,000.  Within the first 30 days of hire, the child life insurance election is a guaranteed issue. 

Unmarried dependent children are eligible for coverage up to age 19, or to age 27 if a full-time student.  For children between the ages of 14 days and 1 year, the benefit amount is reduced to $500.  At age 1 the policy is worth its full amount.

18 pay Semi-Monthly Payroll Deductions - Child Coverage
(50% of Employee Coverage up to $10,000)

Coverage Election

Payroll Deduction

$2,000

$.17

$4,000

$0.33

$6,000

$0.50

$8,000

$0.67

$10,000

$0.83


24 pay Bi-Weekly Payroll Deductions - Child Coverage
(50% of Employee Coverage up to $10,000)

Coverage Election

Payroll Deduction

$2,000

$0.13

$4,000

$0.25

$6,000

$0.38

$8,000

$0.50

$10,000

$0.63

 

An application (Declaration of Insurability) to purchase any of the above options may be filled out after the 30th day of employment (end of Guaranteed Issue Period); however, it is subject to the approval of Standard Insurance Company.  Policies obtained after the Guaranteed Issue period are effective on the date of approval from Standard Insurance Company.

Group Standard Insurance Company Portability Rates
For Optional Supplemental Life Insurance

Upon termination of employment, retirement, or loss of eligibility, faculty and staff will have the option to continue supplemental life insurance at the monthly portability rates listed below.

Faculty/Staff and Spouse Rates are the same (per $1,000 of coverage)

Age

Rate

0-19

$0.12

20-24

$0.12

25-29

$0.12

30-34

$0.13

35-39

$0.16

40-44

$0.27

45-49

$0.47

50-54

$0.72

55-59

$1.23

60-64

$1.47

65-69

$2.83

70 and up

$5.09


Children (per $1,000 of coverage) $.15 (this will not vary by age)
AD&D (per $1,000 of coverage) $.04 (this will not vary by age)

Base Life Conversion
Base life insurance provided to you by GVSU can be continued. However, the conversion rates are based on an individual policy. The individual rates are substantially higher than these portability rates for the optional supplemental life insurance coverage.

A faculty or staff member may apply for a conversion policy if they terminate employment prior to age 65.

Portable coverage will terminate on the occurrence of the earliest of the following:
  • The date for which the last premiums has been paid.
  • The expiration of 10 years following the date portable coverage commences.
  • The date the member attains age 65.
  • The date the portable group insurance policy terminates.

 

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