Employee Matters

Individual and Family Group Term Life Insurance Annual Increase Option

Each spring employees who carry individual and family life insurance have the right to increase existing coverage on themselves, their spouse/domestic partner and their children.

This year the increase option is open to participants who have coverage in effect as of Jan. 1 and who are active employees on approved leaves of absence or in layoff status.

How much insurance coverage is available?

The maximum amount of coverage available is employee, $200,000; spouse/domestic partner, $100,000; and children, $10,000. In addition, spouse or child coverage may not exceed that of the employee.

At initial enrollment employees are limited to the following coverage amounts: employee, up to $20,000; spouse/domestic partner, up to $10,000; and children, up to $5,000.

During this annual increase option period, coverage can be increased by the following amount (subject to coverage maximums): employee, $5,000, $10,000 or $20,000; spouse/domestic partner, $5,000 or $10,000; and children, $2,500.

When is the 2008 annual increase option period?

The 2008 individual and family annual increase option period is March 3–21.

What is the process to increase coverage?

UW System, the plan administrator, will mail the annual increase option notice to an employee’s home address the first week in March. Address information is taken from January 2008 payroll records.

If you wish to increase coverage, you must mail the notice with original signature to UW System HR, 780 Regent St., Suite 305, Madison, WI 53715. Forms are due by Friday, March 21.

What if I carry individual and family life insurance but I do not receive a notice?

You should e-mail the Office of Human Resources at benefits@ohr.wisc.edu.

By how much will my premiums increase?

The premium will be listed in your notice.

When will the coverage increase be effective?

The coverage increase will be effective May 1.

When will the new premium be taken from my paycheck?

Premiums for this plan are deducted one month in advance of coverage. Therefore, the new premium will be deducted from your April payroll (classified pay date April 24; unclassified pay date May 1).

What do I need to do if I do not want to increase coverage?

No action is needed. You do not need to return the notice.

Can my premium increase even if I do not increase my coverage?

Yes, the annual premium review period occurs at the same time. The notice will also indicate if your premium will increase due to a change in age category.

What are my options if I do not currently carry individual and family life insurance?

This is not an open enrollment period. Therefore, if you do not carry the coverage, you are not eligible to enroll during this period. Instead, you must request coverage through Evidence of Insurability. See “Enrollment Alternatives” for more details.