Arizona School Retirees: Life Insurance Benefits Explained

Life insurance is a crucial aspect of financial planning, providing a safety net for loved ones in the event of an individual's death. In Arizona, the state offers a basic life insurance policy of $15,000 to benefits-eligible employees, with the option to purchase supplemental coverage. This raises the question: do Arizona school retirees receive life insurance as part of their benefits package? The Arizona State Retirement System (ASRS) provides retirement security to public servants, including teachers, and offers a range of benefits such as health insurance premium support. However, it is unclear if life insurance is included in these benefits. The All Arizona School Retirees Association (AASRA) also exists to advocate for retirees' rights and provide supplemental insurance options like dental and vision plans. While life insurance is not explicitly mentioned, it is possible that it falls under the umbrella of their offered services.

Arizona retiree health insurance premium benefit

Arizona offers a health insurance premium benefit to supplement the cost of health insurance for retirees. This benefit is available to retirees with five or more years of credited service who have health insurance through the Arizona State Retirement System (ASRS) or non-subsidized coverage through their ASRS employer. The monthly premium benefit, which ranges from $75 to $260, is paid directly to the health insurer or the retiree's former employer. It is important to note that this benefit does not apply to private or Federal Marketplace insurance plans.

Additionally, retirees can choose to receive a reduced premium benefit upon their death, which can be continued by their beneficiary. This option is particularly useful for those with a spouse or dependent who will need ongoing support with insurance premium costs. The reduced premium benefit is calculated based on the age of the retiree and the primary beneficiary.

The Arizona State Retirement System (ASRS) also offers a range of retirement annuity options, including Joint and Survivor or Term Certain annuity choices. To determine eligibility and specific benefit amounts, retirees can refer to their secure myASRS account or contact the relevant retirement system directly.

Furthermore, PSPRS-managed plan retirees are eligible for a health insurance premium benefit subsidy to offset medical and/or dental insurance costs. This subsidy is applicable when retirees participate in an insurance plan administered by their former employer, ASRS, or ADOA. It is important to note that PSPRS and CORP Tier 3 members with Defined Contribution-only benefits must elect to contribute to this benefit, and their decision to enroll is irrevocable.

Supplemental insurance for retirees

Arizona State Retirement System (ASRS) provides a health insurance premium benefit to supplement the cost of retiree health insurance. This is available to retirees with five or more years of credited service who have health insurance through the ASRS or non-subsidized coverage through their ASRS employer. The monthly premium benefit, which ranges from $75 to $260, is paid to the health insurer or the retiree's former employer. This benefit also applies to retirees participating in the ASRS health insurance plans from the Elected Officials'™ Retirement Plan, Corrections Officer Retirement Plan, and the Public Safety Personnel Retirement System. However, it is not available with private or Federal Marketplace insurance plans.

In addition, ASRS retirees have access to a free discount card that offers savings on healthcare-related services and prescriptions. This discount program can be used when insurance does not cover a particular service or prescription and is available to anyone in the retiree's household.

ASRS also offers an optional health insurance premium benefit. This allows retirees to elect to receive a reduced premium benefit that can be continued for their beneficiary upon their death. This option is designed for those who have a spouse or dependent who will need assistance with ASRS insurance premium costs in the future. The reduced premium benefit amount can be determined using the online benefit estimator in the retiree's myASRS account. It is important to note that this option is only available to retirees who select a Joint and Survivor or Term Certain annuity option and is not available with a Straight Life Annuity.

Furthermore, retirees in Arizona can purchase supplemental life and accidental death and dismemberment (AD&D) insurance. This additional insurance provides benefits in the event of death or dismemberment due to a covered accident. It is a voluntary benefit that must be selected during initial enrollment or Open Enrollment. During new hire enrollment, employees can purchase coverage in multiples of $5,000, up to a maximum of $500,000, or the lesser of three times their annual earnings.

Basic life insurance

The All Arizona School Retirees Association (AASRA) provides leadership and promotes action on issues and services to its membership. AASRA also partners with AMBA to provide high-quality benefits to members. These benefits include supplemental insurance like dental and vision plans.

Benefits-eligible employees can also purchase supplemental coverage for both basic life insurance and accidental death and dismemberment (AD&D) insurance plans. This is a voluntary benefit that must be selected at the time of initial enrollment or during open enrollment. At the time of new hire only, an employee can purchase coverage in multiples of $5,000, not exceeding three times their annual earnings, up to a maximum of $500,000.

If you are a benefits-eligible employee, you can rest assured that the state has provided you with basic life insurance coverage of $15,000. This coverage will provide financial support to your loved ones in the unfortunate event of your death. Additionally, AASRA offers further support and services to Arizona school retirees, including supplemental insurance options.

Accidental Death and Dismemberment (AD&D) insurance

The State of Arizona provides $15,000 of AD&D insurance to benefit-eligible employees. This is in addition to the $15,000 of Basic Life insurance provided. Employees can also purchase supplemental coverage for both plans, as well as dependent life insurance.

AD&D insurance covers the unintentional death or dismemberment of the insured. Dismemberment includes the loss, or loss of use, of body parts or functions, such as limbs, speech, eyesight, and hearing.

The coverage provided by AD&D insurance is specific and depends on the company providing the insurance. It is subject to their general rules and regulations. However, you can typically expect some level of coverage for the following:

• Accidental Deaths: An unexpected and unplanned death.
• Dismemberments: The loss of an entire body part, such as a limb, or the use of a specific body part, such as vision, hearing, or speech.

Advantages of AD&D Insurance

• Financial assistance: An accidental death impacts surviving loved ones emotionally and financially, as they must deal with a sudden loss of income. The death benefit from an AD&D policy can add peace of mind by lessening that burden.
• Supplements lost income: The loss of income will carry forward, and AD&D policies provide funds in addition to the death benefit offered through traditional life insurance.
• Lower premiums: Because coverage is limited to certain events causing accidental death or loss of limb, premiums are relatively inexpensive.
• No medical exam: Most insurance companies do not require a medical exam to obtain AD&D coverage, especially for group AD&D offered through an employer.

Disadvantages of AD&D Insurance

• Only pays for certain incidents: This limited coverage can be disadvantageous as it only pays upon certain events. If death occurs outside of these limitations, the AD&D policy does not pay, and premiums are forfeited.
• Low likelihood of payout: In the United States, the leading cause of death is heart-related issues, while accidents rank third. Therefore, it is more likely that someone will die from natural causes than from an accident, especially older adults and those not engaged in risky work.
• Group coverage lost when you change jobs: If coverage is group or employer-sponsored, it may not be portable if the insured leaves the group or employer.
• False sense of security: Having AD&D may give policyholders a false sense of security if they include the face amount in their cumulative life insurance totals during planning. Because AD&D only pays upon certain events, it should not be used to determine whether your life insurance portfolio is sufficient.

Retirement eligibility

The Arizona State Retirement System (ASRS) provides retirement security to Arizona's public servants, including teachers, municipal workers, and other government employees. The ASRS offers a health insurance premium benefit to supplement the cost of retiree health insurance. This benefit is available to retirees with five or more years of credited service who have health insurance through the ASRS or non-subsidized coverage through their ASRS employer. The monthly premium benefit, ranging from $75 to $260, is paid directly to the health insurer or the retiree's former employer. It is important to note that this benefit does not apply to private or Federal Marketplace insurance plans.

Additionally, the ASRS provides an optional health insurance premium benefit. This option allows retirees to elect a reduced premium benefit that can be continued by their beneficiary upon their death. This option is designed for those with a spouse or dependent who will need continued assistance with insurance premium costs. The reduced premium benefit remains in effect as long as the beneficiary receives a monthly pension benefit and remains enrolled in an eligible healthcare plan. However, retirees have the option to cancel this election in writing at any time and become eligible for the unreduced premium benefit.

The All Arizona School Retirees Association (AASRA) is an organization dedicated to protecting and improving the retirement of school employees, teachers, administrators, and support staff. AASRA provides leadership and promotes advocacy on issues affecting retirees and public education. They also offer supplemental insurance plans, such as dental and vision, through their partnership with AMBA.

Frequently asked questions