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Group Life Insurance
Do I contribute to the cost of my life insurance?AURA/NOAO provides you with basic group life insurance of $40,000 for full-time employees and $20,000 for part-time employees scheduled at least 20 hours per week. In addition to your basic life insurance, you are provided Accidental Death & Dismemberment Insurance at the same coverage level as your basic life insurance. AURA/NOAO pays the premiums for this insurance. Employees can purchase additional Optional Life Insurance and Voluntary Accidental Death & Dismemberment Insurance. Employees pay the premium for this additional insurance which is based on age and smoking status. Optional and Voluntary AD&D Life Insurance Rates Contact Human Resources for more information on Optional and Voluntary Life Insurance. What happens to my coverage if my employment is terminated?During the 31 days following termination of employment, reduction of life insurance due to age, retirement, or policy discontinuance, an employee may convert coverage to a whole life individual policy issued by Sun Life of Canada. Coverage is continued on a direct-bill basis. Billing may be quarterly, semi annual or annual at the employee's option. Does my coverage ever reduce?Your group basic term life insurance will be reduced by 35% of the original amount at age 75 and an additional 15% of the original amount at age 80. Your Optional Life Insurance will be reduced by 35% of the original amount at age 65, an additional 25% of the original amount at age 70, and an additional 15% of the original amount at age 80. Benefits terminate at age 80 or retirement, which ever occurs first. What happens to my life insurance coverage if I become disabled?If you become permanently and totally disabled, your basic life insurance may be extended under the premium waiver provision of your coverage. You will not be required to make any further contribution while disabled if approved. Is it necessary for me to name a beneficiary for my life insurance policy?Most people name a beneficiary or beneficiaries because they want to be sure that the people they intended to receive the proceeds of their life insurance actually receive them. While it is your choice to not name a beneficiary, we encourage you to do so. However, if a beneficiary is not named, the benefit would be paid to the employee's estate. You should consult with your tax or legal advisor. My children are minors. Can I still name them as the beneficiaries of my life insurance policy?Yes. However, there are legal restrictions to releasing proceeds to a minor beneficiary without court authorization. If a claim occurs, Sun Life will notify the claimant of any specific requirements for payment. Until appropriate documentation is received, Sun Life will hold the insurance proceeds on deposit with interest until the minor can receive payment under applicable law. You should consult with your tax or legal advisor for more specific questions. Can I assign my benefits to another person or organization?Life insurance may be assigned. You must complete the appropriate forms. How do I file a claim?A life claim form packet must be completed. Contact the Human Resources Department to obtain these claim forms. How long will it take for Sun Life to process a life claim?Life insurance claims are typically processed upon of receipt of all pertinent and required information. What payment options are available for death benefit proceeds?When a life claim or an accelerated benefit on an insured employee is approved with proceeds of $10,000 or more, the beneficiary or employee has immediate access to funds through the Sun Financial Benefit Account (SFBA). This account is automatically opened through State Street Bank and Trust Company, Boston, MA, in the name of the beneficiary or the employee. When proceeds are less than $10,000 and/or payable to a beneficiary not receiving benefits in their own right (i.e., a guardian, trustee, executor), a check for the entire proceeds is issued by Sun Life Assurance Company of Canada. Whom should I contact if I have questions regarding a life insurance claim?You should contact the Sun Life Assurance Company of Canada Customer Service Center toll-free at 800-247-6875. Is there an accelerated/living benefit for terminal illnesses?There is an accelerated benefit provision which allows a terminally ill employee to access a significant portion of their life insurance benefit while he or she is still alive. This benefit may be utilized to ease any financial hardship or other personal need due to the terminal illness. This provision is detailed in the certificate of coverage. Who can I contact if I have further questions?
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