Participant Rights and Responsibilities Upon Transfer or Termination
IU Retiree Status
Life Insurance Coverage
When an employee terminates from the university, participation in the Basic and Supplemental Life Insurance plans and associated Accidental Death and Dismemberment (AD&D) coverage ends on the day on which the individual terminates. Dependent coverage terminates at the same time.
The university provides a Retiree Life Insurance benefit to terminated employees with IU Retiree status. There is no dependent coverage provided as part of the Retiree Life Insurance benefit, and no associated AD&D coverage.
The amount of Retiree Basic Life Insurance provided by the university is $6,000 for those terminating with IU Retiree status January 1, 2003, or after.
All terminated employees with IU Retiree status are automatically covered by the Retiree Life Insurance benefit. This insurance is paid for by the university.
Conversion of Life Insurance for Retirees. Coverage for the difference between the amount of active Basic Life Insurance coverage and the amount of the Retiree benefit may be converted to an individual life insurance policy without providing proof of good health. Supplemental Life Insurance may also be converted up to the amount of coverage held by the Retiree at the time of termination.
Prior to termination, the amount of coverage is reduced at age 70. At the time these reductions take place, the employee has the right to convert the amount of coverage that was lost due to this age-based reduction.
The employee must make application for an individual policy and pay the first premium for that policy within 31 days after the date the employee's insurance ceases under the IU-sponsored Group Life Insurance Policy.
The underwriter makes every effort to provide a conversion offer to employees upon discontinuation of IU-sponsored Life Insurance coverage; however, it is the employee's responsibility to convert their policy in a timely manner, whether or not a conversion offer is extended at the time of termination.
If the employee dies during the 31 days allowed for conversion, the underwriter will pay the amount of Life Insurance that could have been converted.
Conversion of Life Insurance for Dependents. Retiree coverage does not include coverage for dependents. Dependents may purchase an individual policy when coverage ends due to the employee's coverage ceasing or when the dependent no longer meets the definition of a dependent for coverage under the employee's Basic Life Insurance. The amount of the individual policy is limited to no more than the amount at the time coverage ceased. The dependent must submit an application and pay the initial premium within 31 days of the date on which coverage ends.
Summary of actions the participant must take:
- To convert to an individual policy, return the conversion offer application to the address listed on the letter received from the policy underwriter. If a conversion offer is not received, contact University Human Resource Services at (812) 855-2007. In either case, the form must be submitted to the policy underwriter within 31 days after the date on which group coverage terminates. (The same form is used for converting Basic Life, Supplemental Life or both.)
- Send the initial premium with the conversion form within 31 days after the date that group coverage terminates.
- Notify the policy underwriter of beneficiary changes.
- Notify the policy underwriter of address and name changes.
- Provide the beneficiary or other representative with information on how to file a claim.
To file a claim, the beneficiary or representative must contact the University Human Resource Services office for a Proof of Death Claim Packet and follow the steps below:
- Complete, sign, and date the Proof of Death Claim form, including current beneficiary designation;
- Complete the Life Insurance Benefits Beneficiary Statement; and
- Send the Proof of Death Claim form to The Standard at the address given on the form, including the following attachments:
- All of the employee's Enrollment and Change and Beneficiary Designation forms (including any forms from previous carriers)
- A certified copy of the descendant's death certificate.
Beneficiary changes can be made by contacting University Human Resource Services to obtain a change form, or by printing a form from hr.iu.edu/pubs/forms/forms-list.htm (under the Insurance section).
To obtain an application to convert life insurance to an individual policy, contact University Human Resource Services at (812) 855-2007.