Life Insurance Questions

Can I continue this insurance if I terminate employment?

No, this is a group policy and upon termination, you no longer qualify. You may convert to a private policy with the company by calling 214-237-9000.

Is the insurance taxable for my beneficiaries?

The insurance is taxable only under certain circumstances, usually if it is made payable to the estate. If it is paid to the beneficiary, the insurance is not taxable.

Does it pay under any circumstances for me? For my spouse?

Certain restrictions apply. Please contact your local benefits office.

Do my beneficiaries automatically update if I marry or have a child?

No. You will need to fill out a life insurance form to indicate any changes regarding your beneficiaries. If you wish to add your newborn to your policy, you need to do so within 31 days from date of birth. The newborn coverage will become effective two weeks from date of birth.

Do I have to get a physical for evidence of insurability? Who pays? What doctor can I use?

If the insurance company requires you to do so. If the employee is a late entrant (did not complete paperwork within the eligibility period or asks to increase coverage during annual enrollment) the employee is responsible to pay the fee for any physician statements and/or cost of medical exam. Please be advised this request is made in rare instances. You will receive instructions to follow, including a list of physicians, from the insurance company.

What happens to my policy if the university changes companies?

Your policy will transfer with the new life insurance carrier.

Are my rates locked in for supplemental and spouse insurance?

Rates are good for the current calendar year which begins January 1 and goes through December 31.

If my spouse works here, can I cover them under my policy also?

If your spouse is employed through the university of Oklahoma in a benefits eligible position, you may not carry them on your policy. They will only be eligible to apply on their own policy through the university. Also, only one of the benefits eligible employees can carry the children on their life insurance coverage.

Is this the kind of life insurance that is like an investment?

No, this life insurance is considered term coverage.

Is life insurance a retirement benefit?

Life coverage ends upon retirement. However, you may convert to a permanent individual policy provided you do so within 31 days of retirement. Premium amounts for conversion policies are age related. If you retire prior to age 65, you may elect to continue Life insurance through the university, within 31 days of retirement. There are certain conditions that apply:

If you are less than age 62, you may purchase up to 50% of the coverage in force at retirement, for a maximum of $50,000, and a minimum of $10,000. At age 62, this coverage reduces by %50. Coverage ceases at age 70.
If you are age 62 to 70, you may continue up to 25% of the life insurance coverage in force at retirement, for a maximum $25,000 and a minimum of $5,000. Coverage ceases at age 65.
If you elect to convert to an individual policy, you will be responsible for payments, which will be made directly to the company. Conversion forms are available by contacting the company at 214-237-9000.

The current cost to continue group life insurance through the university is 0.125 per $1,000 of coverage, regardless of age.