What is the purpose of the basic Group Term Life insurance?
The purpose of the basic Group Term Life insurance is to provide exempt employees with basic Group Term Life insurance coverage. This will give them some degree of financial security as well as support for designated beneficiaries in the event of the death of a covered exempt State of Ohio employee.
Who is eligible for the basic Group Term Life insurance?
How do I enroll in the basic Group Term Life insurance?
All eligible exempt State of Ohio employees are automatically enrolled in the basic Group Term Life insurance after one year of continuous service.
Do I contribute to the cost of the Group Term Life insurance?
As an exempt employee of the State of Ohio, your basic Group Term Life insurance is provided to you at no cost and with no evidence of insurability regardless of your health status.
What is the protection amount of the basic Group Term Life insurance?
An amount equal to your annual salary rounded to the next highest thousand. Annual salary is computed based on:
Is my basic Group Term Life insurance taxed?
Basic Group Term Life insurance coverage of $50,000 or less provided to you by your employer is excluded from your income. Under IRS regulations, the value of employer-paid basic Group Term Life insurance coverage in excess of $50,000 is considered taxable income to the employee and is reported on the W-2 statements.
Does the basic Group Term Life insurance have any cash value?
No. This is Group Term Life insurance with no cash value.
What is Occupational Accidental Death & Dismemberment (AD&D) insurance?
Occupational AD&D provides financial protection in the event of a fatal occupational accident or an occupational accident which results in the loss of a limb or eyesight. For benefits to be paid, the death or loss must occur while employed by and at work for the State of Ohio. The claim must be not more than one year from the date of the occupational accident and be a direct result of bodily injury sustained from that accident, independent of all other causes.
How do I enroll in Occupational AD&D insurance?
You are automatically enrolled under the Occupational AD&D insurance when enrolled in the exempt basic Group Term Life insurance.
What is the protection amount of the Occupational AD&D insurance?
It is equal to your basic Group Term Life insurance amount. If loss of life is caused by the occupational accident, the Occupational AD&D benefit is payable in addition to the basic Group Term Life insurance benefit. Refer to the basic Group Term Life and Occupational AD&D insurance Certificate for the loss of limb/eyesight schedule of benefits as well as additional Occupational AD&D benefits such as Seat Belt, Air Bag, Career Adjustment, Child Care, Higher Education, Occupational Assault and Public Transportation.
What is an Accelerated Living Benefit and how does it work?
If you become terminally ill with a Qualified Medical Condition and meet certain requirements, and are not expected to live more than 12 months, you may request up to 75 percent of your basic Group Term Life insurance benefit amount. A doctor must certify your condition in order to qualify for this benefit. The death benefit will be reduced by any benefits paid under this option. To file a claim, contact DAS benefits and request an Accelerated Living Benefit Packet.
NOTE: Please review your situation carefully before taking the Accelerated Living Benefit option. Tax laws relating to the Accelerated Living Benefit are complex. You are advised to consult a qualified tax or legal advisor before accepting payment from an Accelerated Living Benefit.
Who is the beneficiary for the basic Group Term Life insurance?
The employee designates the beneficiary for the basic Group Term Life insurance. If no beneficiary is designated, payment is made in the following order of classes in which an individual has survived the insured employee:
Can I name my minor children as the beneficiaries of my basic Group Term Life insurance policy?
Yes. However, there are legal restrictions to releasing proceeds to a minor beneficiary without court authorization. Life insurance proceeds are not paid directly to minor beneficiaries. Proceeds are paid according to state law. It may be necessary to have a conservator appointed for the estate of a minor. This can mean legal expenses for the conservator/guardian and a delay in the payment of the insurance. In most cases, benefits paid to a minor cannot be used to pay funeral or medical costs. You should consult with your tax or legal advisor for more specific questions regarding minor children named as beneficiaries.
Can I assign my benefits to another person or organization?
Life insurance may be assigned. You must complete the appropriate Absolute Assignment form.
How do I change my beneficiary?
To change your beneficiary, you may contact The Standard directly at 866-415-9518 and select option #1. Or print a Beneficiary Designation/Change form, fill out the form completely and mail it to The Standard at the address provided on the form. Please be sure to sign and date it. The beneficiary designation is effective the day The Standard receives your completed form.
Why does the insurance company need a Social Security number for the beneficiary?
The Standard is required to file a 1099 Interest Income form when interest is paid on the proceeds of the Life insurance policy. The Social Security number is required to complete the form.
What options do beneficiaries have for receiving the policy proceeds?
Beneficiaries will be paid by check or, if proceeds exceed $10,000, the benefit can be deposited into an interest-bearing Standard Secure Access account. In this case, the beneficiary receives a draft/checkbook instead of a check, funds begin earning interest the day the claim is paid and the beneficiary may make withdrawals at any time in amounts of $250 or more. If they wish, they may write a check for the full amount of the benefit and close the SSA account. There are no additional fees for this service.
The DAS Benefits Office files claims on behalf of the employee or beneficiary. Obtain a Life Insurance Claim form. Complete the claim form and forward to DAS, 30 E. Broad Street, 28th Floor, Columbus, Ohio 43215, along with a certified copy of the death certificate. If the death was due to an accident, we will also need a copy of the police and/or accident report, including toxicology results as well as any news articles and the obituary.
How long does it take to process a basic Group Term Life insurance claim?
The Life insurance claims process starts upon receipt of all pertinent and required information and normally is completed within seven business days.
When does my coverage terminate?
Coverage under your basic Group Term Life insurance policy will terminate at the end of the month in which you separate from state service.
Will my insurance continue during a disability?
If you are on approved disability leave, the state continues to pay for your basic Group Term Life insurance premium for up to one year.
Yes. You may apply for conversion or portability of your basic Group Term Life insurance within 45 days following the date your employment ends.
The conversion feature allows you to transfer your basic Group Term Life insurance to permanent (cash value) insurance. It provides life-long protection as long as you continue to pay the premiums. The premiums are based on your age at the time of purchase and increase annually. You may not convert the Occupational AD&D feature of your coverage.
Under the conversion feature, premiums are payable to 100 years of age or death, whichever occurs first. If you elect to convert your policy, you must apply for the individual policy by completing the Application to Convert Basic Group Term Life Insurance Form and submit the first premium payment to the insurance company within 45 days of your loss of coverage. The minimum amount of coverage you may elect is $2,000. You do not need to provide evidence of good health.
If you are not considered disabled, you may also continue your basic Group Term Life insurance policy. Portability is a less expensive option than the conversion option because the coverage provided remains basic Group Term Life insurance and does not build cash value.
To qualify for the portability option, you must apply for the continuation within 45 days of the date your employment ends by completing the Application for Portability form.
For additional information about basic Group Term Life insurance, please refer to your Certificate of Coverage or contact The Standard at 866-415-9518, ext 4.