Life Insurance Coverage
Eligibility for Coverage
College employees are covered under the Group Life and Accidental Death and Dismemberment Insurance Plan effective the first day of appointment to a full-time position. No medical examination or other evidence of insurability is required. Newly enrolled employees must complete an enrollment form and a beneficiary designation form, available from Human Resources.
Premiums
Franklin & Marshall College pays the full cost of the premiums for this coverage as part of total compensation for full-time employees.
Basic Term Life Insurance
The value of College-paid term life insurance is equal to 1.5 times actual annual salary (excluding overtime pay and other forms of additional compensation), rounded to the nearest multiple of $1,000, up to a maximum life insurance amount of $100,000. The Group Life Insurance amount will be reduced by 50% at age 70 for any full-time employee.
Accidental Death and Dismemberment Benefit
If an employee's death is the result of a covered accident, an Accidental Death and Dismemberment (AD&D) benefit will be paid to the employee's beneficiary, in addition to the basic term life insurance benefit. The AD&D benefit is equal to 1.5 times the employee's actual annual salary (excluding overtime pay and other forms of additional compensation), up to a maximum of $100,000.
Please note that an employee's life insurance coverage level will fluctuate (increase or decrease) as his/her salary changes.
Employees should review their Certificate of Insurance, available from Human Resources, for a full explanation of benefits.
Continuation of Life Insurance Coverage during Total Disability
Life insurance coverage will continue during an approved long-term disability period under certain conditions, as outlined in the Certificate of Insurance.
Termination of Coverage and Conversion Rights
College-paid life insurance coverage will be discontinued upon termination of employment (as of the last actual working day); commencement of an unpaid leave of absence, except an approved Family & Medical Leave; or a change from full-time to part-time status.
Under most circumstances, employees whose life insurance coverage is terminated are entitled to apply for an individual life insurance policy within 31 days after the termination of group life insurance coverage. The former employee must pay the applicable premiums to continue coverage. Upon termination of group life insurance coverage, an individual interested in this conversion must contact the life insurance carrier, and pay the first premium, within 31 calendar days of loss of group coverage.
Retiree Life Insurance
An employee who, when active employment terminates, has completed at least 10 consecutive full years of full-time employment with the College after the age of 50, is eligible for life insurance coverage during retirement. At retirement, an individual's basic life insurance amount will be 25% of the basic life amount he/she had immediately prior to retirement. Coverage is not subject to further reductions during retirement. Retirees do not retain Accidental Death and Dismemberment coverage.
Retirees have the option of converting the difference between their life insurance coverage as an active employee and their coverage upon retirement to an individual policy. If interested in such conversion, the retiree must contact the College's life insurance carrier within 31 calendar days of his/her last working day. If the life insurance policy conversion is completed, and the first premium paid, within 31 calendar days of retirement, evidence of good health will not be required.
Upon enrollment in the Plan, employees will be provided with a Certificate of Insurance and a Life & Accidental Death Insurance Summary Plan, which should be read carefully for important details about coverage and exclusions.
