Life Insurance: Pebb's Basic Coverage And Beyond

The Public Employees Benefits Board (PEBB) Program provides basic life insurance coverage for all PEBB employers, except medical-only employer groups. This basic life insurance is employer-paid and covers only the employee, paying their designated beneficiaries in the event of the employee's death. The coverage provided is worth $35,000, and employees are automatically enrolled in this insurance when they become eligible for PEBB benefits. Additionally, the PEBB Program also offers accidental death and dismemberment (AD&D) benefits, with basic AD&D insurance providing coverage of $5,000.

Basic life insurance is automatically provided to newly eligible employees

The basic life insurance coverage is provided at no cost to the employee and offers a benefit of $35,000 in the event of their death. This insurance plan is employer-paid, meaning that the employee is not responsible for any premiums or fees associated with this coverage. It is important to note that this basic insurance covers the employee only and will pay their designated beneficiaries in the event of their death.

In addition to this basic coverage, employees have the option to enrol in supplemental life insurance plans. These plans are employee-paid and can provide additional coverage for the employee, their spouse or state-registered domestic partner (SRDP), and children. The supplemental insurance is offered through MetLife, which processes enrollment, claims, and provides customer service for these benefits.

The basic life insurance coverage for newly eligible employees provides a strong foundation for financial protection in the event of an employee's death. It ensures that their designated beneficiaries will receive a benefit to help support them during a difficult time. This automatic enrolment serves as a valuable safety net and provides peace of mind for employees and their loved ones.

Employees can choose to add supplemental insurance for themselves

Supplemental insurance is employee-paid and allows employees to increase their coverage beyond the basic $35,000 in life insurance and $5,000 in accidental death and dismemberment (AD&D) insurance provided by the employer. Employees can choose to purchase additional coverage in increments, with the maximum amount depending on whether they provide medical evidence of insurability. For example, without medical evidence of insurability, employees can purchase up to $500,000 in additional coverage, while providing this evidence allows them to purchase up to $1,000,000 in coverage.

The cost of supplemental insurance varies based on the employee's age and tobacco use. Rates increase as the employee reaches each new age bracket. Employees can use the life insurance calculator to determine how much additional insurance they may need.

Supplemental insurance provides employees with access to additional services, such as will preparation and estate resolution services. It also allows employees to increase their coverage for certain injuries or death resulting from a covered accident.

Enrolling in supplemental insurance can be done through MetLife's MyBenefits portal or by submitting the MetLife Enrollment/Change form directly to the company. Employees should be aware that if they are on unpaid leave, furloughed, or not scheduled for work for extended periods, they will need to ensure their mailing address is updated to receive bills for their insurance premiums directly from MetLife.

Employees can also add supplemental insurance for their spouse or state-registered domestic partner

The Public Employees Benefits Board (PEBB) Program offers life insurance through MetLife. Employees who elect supplemental life insurance for themselves may also elect supplemental coverage for their spouse or state-registered domestic partner (SRDP).

Employees are automatically enrolled in basic life insurance with $35,000 in coverage. This is employer-paid and covers the employee only. In addition to this basic life insurance, employees may choose to enroll in supplemental insurance, which is employee-paid. Employees can elect supplemental coverage for their spouse/SRDP and children.

The amount of supplemental insurance an employee can elect for their spouse or SRDP cannot exceed 50% of the employee's own supplemental life insurance. The cost of this insurance is based on the employee's age and the spouse's or SRDP's tobacco use. Premiums increase as the employee reaches each new age bracket.

Employees can enrol in supplemental insurance through MetLife's MyBenefits portal or by submitting an enrolment form directly to MetLife.

Employees can add supplemental insurance for their children

The Public Employees Benefits Board (PEBB) Program provides life insurance and accidental death and dismemberment (AD&D) benefits for all PEBB employers, except for medical-only employer groups. Metropolitan Life Insurance Company (MetLife) processes enrollment and claims and provides customer service for these benefits.

Basic (employer-paid) life insurance covers only the employee and pays their designated beneficiaries in the event of the employee's death. Newly eligible employees are automatically enrolled in basic life insurance with $35,000 in coverage. Employees are eligible for coverage as long as they are eligible for PEBB benefits.

In addition to basic life insurance, employees may choose to enroll in supplemental (employee-paid) life insurance. Employees who elect supplemental life insurance for themselves may also elect supplemental coverage for their eligible spouse/state-registered domestic partner (SRDP) and children. Employees have the option to buy additional coverage by enrolling in the supplemental plans offered.

Supplemental life insurance for children is available in increments of $5,000 up to $20,000. Evidence of insurability is not required for children. The monthly premium for supplemental life insurance for one or more children is $0.124. This single rate applies even if more than one eligible child is covered. For example, if an employee elects $20,000 in life insurance coverage for one child, the monthly premium would be ($0.124 x 20 = $2.48 per month). If an employee elects $20,000 in life insurance coverage for three children, the monthly premium would still be $2.48 per month.

In addition to life insurance, employees may also enroll their children in supplemental AD&D insurance. Supplemental AD&D insurance covers certain injuries or death resulting from a covered accident. The maximum coverage available for children is $25,000. Evidence of insurability is not required for supplemental AD&D insurance, and there is no maximum age limit for children to be covered. The monthly premium for supplemental AD&D insurance coverage for one or more children is $0.016. As with life insurance, this single rate applies even if more than one eligible child is covered.

Employees must name a beneficiary for their life insurance

Naming a beneficiary for their life insurance is a crucial step for employees to ensure their benefits are distributed according to their wishes. A beneficiary is the person or entity legally designated to receive the benefits from the employee's life insurance policy or financial products upon their death. While it is not mandatory, choosing a beneficiary is essential to providing financial support to loved ones after the employee's passing, which is often the primary purpose of purchasing life insurance.

There are two types of beneficiaries: primary and contingent. A primary beneficiary is typically the employee's spouse, children, or other family members and is the first in line to receive the death benefit. In the event of the primary beneficiary's death or if they pass away simultaneously, a secondary or contingent beneficiary is named to receive the benefit. Employees can also choose to not name a beneficiary, but this may result in delays in benefit payments and probate, a legal process where a court determines how to distribute the assets.

It is important for employees to keep their beneficiary designations up to date, especially after significant life changes such as marriage, divorce, or the birth of children. While beneficiaries can be changed at any time, remembering to do so is crucial to ensuring the employee's intentions are honoured. Additionally, employees should be aware of any state laws or restrictions on who can be named as a beneficiary, as their state of residence may require them to list their spouse as the primary beneficiary.

To name a beneficiary, employees can use the MetLife MyBenefits portal or submit the Beneficiary Designation form directly to MetLife. They will need to provide specific information, including the beneficiary's full legal name, relationship, and other relevant details such as mailing address and date of birth. By designating a beneficiary, employees can have peace of mind knowing that their benefits will go to their intended recipients.

Frequently asked questions