As an exempt employee of the State of Ohio, your basic (or group) life insurance is provided to you at no cost and with no evidence of insurability (i.e., regardless of your health status). The form of basic coverage is term life insurance, which covers the insured person for a certain period of time - the “term” that is specified in the policy. As a state employee, your term for basic life insurance starts after one year of continuous service to the end of your employment with the state. It pays a benefit to a designated beneficiary only when the insured dies within that specified period.

Accidental Death and Dismemberment (AD&D)

The plan provides additional benefits in the event of occupational accidental death or serious injury.

You are automatically covered under the occupational Accidental Death and Dismemberment (AD&D) insurance. It is equal to your basic insurance amount. AD&D provides financial protection in the event of a fatal occupational accident or an occupational accident that results in the loss of a limb or eyesight. For benefits to be paid, the death or loss must occur 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.

Please refer to the Certificate of Group Life Insurance or this Benefits at A Glance for additional information about the AD&D features of this policy.

Basic Life Administrator

The life insurance administrator for the basic life insurance is:

Standard Insurance Company
1100 SW Sixth Avenue
Portland, OR 97204
(866) 415-9518

Group Policy Number

The group policy number for exempt employees is 645571-A.

Certificate of Coverage

Click here to access the certificate of coverage.

Eligibility

Life insurance is provided to:

Continuous state service includes only state service in active pay status and is measured from the date on which the current period of state service began. The following qualifications apply:

Applying for Life Insurance Benefits

Basic life insurance coverage begins after you have completed 365 days of continuous state service. State service does not include university, city, county, or municipal service time. At that time you should receive a beneficiary form and a copy of the basic life insurance policy from Benefits Administration Services. The beneficiary form lets you name the beneficiary of your basic life insurance policy. Complete the beneficiary form and return it to Standard Insurance Company at the address on the form.

Beneficiary

A beneficiary is a person(s) or financial institution (i.e. trust fund) named in an insurance policy as the recipient of the funds in the policy in the event the policyholder dies. You may also want to name a secondary or “contingent” beneficiary, in case you outlive the first beneficiary. Proceeds of a life insurance policy are typically tax-exempt with the exception of any interest earned.

If you do not name a beneficiary or none of your beneficiaries survive you, equal payment is made to the first of the following:

1. Your spouse
2. Equal shares to your children
3. Equal shares to your parents
4. Equal shares to your sisters and brothers
5. Your estate

If there is no living beneficiary, the proceeds will be paid to your estate and have to go through probate proceedings, resulting in a possible delay before your family receives the proceeds. If the proceeds go into the estate, these proceeds may be subject to estate taxes.

You may change your beneficiary at any time by completing a new Beneficiary Designation Form. The change is not effective until it is recorded by Standard Insurance Company. Once recorded, it will take effect as of the date the form was signed. Note, however, that if a death occurs before the change request was received, payments already made will not be altered. You may obtain a new Beneficiary Designation Form here and on the forms section of the Benefits Web site.

Payment of Benefit

Payment will be made to the insured’s beneficiary in the amount of life insurance in force as of the date of the Insured’s death provided:

• Employee is insured under the policy on the date of death; and
• Proof of death is received within two years after the date of death.

You or your beneficiary may elect to have the insurance proceeds paid in installments. Check with Standard Insurance Company regarding what plans are available.

Amount of Insurance

The benefit amount provided is the greater of the following two calculations:

An amount equal to your annual salary rounded to the next highest thousand. Annual salary is computed based on:

• 1,040 hours if you are a part-time permanent employee;
• 2,080 hours if you are a full-time permanent employee; and
• 2,704 hours if you are a firefighter in the Adjutant General’s Office.

Group term life insurance coverage (i.e. basic life insurance) of $50,000 or less provided to you by your employer is excluded from your income. The cost of insurance protection in excess of $50,000 paid by your employer, however, is taxable income and is shown on your W2. You may not limit the amount of your life insurance coverage in order to avoid this tax.

Accelerated Death Benefits

If you have been diagnosed with a terminal illness and according to a physician, have less than 12 months to live, accelerated death benefits allow you to take a cash advance of a portion of your total life insurance benefit. You can request up to 75 percent of the life policy amount. All accelerated death benefit requests are subject to state approval and may require an examination by a physician chosen by Standard Insurance Company.

You may obtain an Accelerated Benefit Application by contacting Benefits Administration Services at (800) 409-1205. This form is available in the forms section of the Benefits Web site.

Termination of Insurance

Coverage under your basic life insurance policy will terminate at the end of the month in which you separate from state service.

During a Layoff

If you are laid off from state employment, you may have the option to continue basic (group) life insurance at group rates for one year. If you choose to do so, you will need to pay a full year’s premium at the beginning of the year from the date you were laid off. Complete form ADM 4302, available from your personnel office or this Benefits Administration Web site.

After the first year, the policy can be converted to an individual (not a group) policy. If you return to work within one year from the date you were laid off, any unused premium will be refunded to you.

During a Disability

If you are on approved disability leave, the state continues to pay for your life insurance premium for up to one year.

Conversion to an Individual Policy

Once you are no longer employed with the State of Ohio, through any means except layoff, the life insurance coverage provided by the state will terminate at the end of the month in which you are separated. Under the group contract, you have the opportunity to either convert or port your coverage. You may exercise only one of these options which are explained below.

Conversion
The conversion feature allows you to transfer your term group life insurance to a 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.

Because premiums increase annually, permanent insurance is more expensive than term insurance; however, permanent insurance accumulates cash value, which may be refundable upon surrender of the policy.

Under the conversion feature, premiums are payable to age 100 or death, whichever occurs first. If you elect to convert your policy, you must apply for the individual policy 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.

Portability
You also may port your basic life insurance policy. Portability is a less expensive option than the conversion option because the coverage provided remains term 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 of the termination of coverage. You do not need to provide satisfactory evidence of insurability (proof of good health).

The Application for Portability form is available to download here.