Voluntary Life and Accidental Death Insurance

Many people, in the event of premature death, want to provide money for loved ones to meet current and future obligations such as rent, mortgages, automobile loans, children’s college education, as well as everyday living expenses. Miami-provided life insurance may not be enough to meet financial needs. Most financial planners say you should protect your family with 5x to 10x your current annual salary in Life insurance.

Therefore, in order to help meet life insurance needs, Miami provides a voluntary life plan at low group rates with premiums paid by convenient payroll deduction. Also, because it is a group plan, you are able to get certain amounts of coverage without providing proof of good health.

Voluntary Group Term Life Insurance

Employee Benefit

The principal sum for employee coverage can be flat increments of $10,000, not to exceed 5 times annual salary to a maximum of $500,000. Coverage amounts up to and including $350,000 are Guaranteed Issue (i.e. no medical proof of insurability is required if coverage is purchased within 31 days from the date of hire). Coverage amount reduces beginning at age 65. For a spouse, coverage of $10,000, $20,000, or $30,000 can be purchased. For a child, coverage of $5,000 or $10,000 can be purchased.

You may purchase additional amounts of life insurance coverage in increments of $10,000 up to 5x your annual salary to a maximum of $500,000. If not a multiple of $10,000, this amount will be rounded to a multiple of $10,000 to a maximum of 5x your salary or $500,000, whichever is lower.

Your annual salary is your basic annual earnings. It does not include bonuses, overtime or any other form of compensation. Premiums are deducted from your paycheck on a post-tax basis.

The reduction schedule is the same as that for Miami-provided group life insurance.

Cost for Employee

The cost for yourself as the employee is based on your age at a rate per $1,000 coverage per month.

.040, less than age 25
.018, 25-29
.064, 30-34
.072, 35-39
.080, 40-44
.120, 45-49
.216, 50-54
.408, 55-59
.648, 60-64
1.096, 65-69
1.720, 70+

Spouse Benefit

You may purchase life insurance for your spouse in the amounts of $10,000, $20,000 or $30,000. You must purchase a minimum of $10,000 employee coverage to enroll in the spouse coverage.

$10,000 coverage cost is $2.00 per month
$20,000 overage cost is $4.00 per month
$30,000 coverage cost is $6.00 per month

Child(ren) Benefit

You may purchase life insurance for your child(ren) in the amounts of $5,000 or $10,000. Age at death benefit amount is from birth to the end of the calendar month in which they turn 26. You must purchase a minimum of $10,000 employee coverage to enroll in the child(ren) coverage.

$5,000 coverage cost is $1.00 per month
$10,000 coverage is $2.00 per month

Frequently Asked Questions

Do I need to answer health questions before I am covered?

If you are a new employee to Miami University, during your first 31 days of employment you may enroll for coverage up to the non-medical maximum of $350,000 supplemental life for employees. You must provide proof of good health (evidence of insurability) for elected amounts higher than the non-medical maximums before coverage takes effect. There is no proof of insurance necessary for Spouse Life or Child(ren) Life.

An Evidence of Insurability application form must be completed. Contact the Benefits office (513-529-3926) to request the form. Once you have submitted the form to Liberty Mutual, you will be advised if your coverage is approved or denied. If approved, coverage will be effective the first payroll period you receive a deduction following approval of your application.

Can I refuse coverage now and enroll later?

Yes, with restrictions. If you do not elect to participate during your initial election period, you are only eligible to enroll within 31 days of a qualifying event or during the annual open enrollment (typically in October). Most importantly, you must provide proof of good health (evidence of insurability) for ALL amounts of coverage before it takes effect. See question above for information on evidence of insurability forms.

What other benefits are included?

Waiver of Premium is provided to pay for your insurance to age 65 while you are totally disabled as long as disability commences before age 60 and lasts longer than 9 months. Accelerated Death Benefits allow you to advance-collect roughly 50% of your Life amount to a maximum of $600,000 (basic and supplemental combined) if your life expectancy is 12 months or less.

Can I purchase additional coverage later?

Yes, with restrictions. If you are already enrolled in the Supplemental Life plan, you may elect additional coverage in $10,000 increments at each annual enrollment in October without providing proof of good health unless the new amount exceeds the non-medical maximums of $350,000 for employees. Of course, you may also apply for amounts above the non-medical maximums by providing proof of good health during your annual enrollment period in October. You must complete a new enrollment form for ALL changes.

Can I take the coverage with me if I no longer work for Miami University?

You and your Spouse may convert your coverage to individual whole Life policies within 31 days of your termination without providing proof of good health. Child coverage cannot be converted.

Voluntary Accidental Death and Dismemberment (ADD)

Premium for Voluntary ADD

$.02/$1,000 of coverage per month for single (employee only)
$.025/$1,000 of coverage per month for the family

Employee Benefit

You may select an amount of insurance in flat increments of $10,000 not to exceed the greater of $300,000 or 10 times your annual salary to a maximum of $500,000. If not a multiple of $10,000, this amount will be rounded to a multiple of $10,000. Your annual salary is your basic annual earnings. It does not include bonus, overtime or any other form of compensation.

Spouse and Children Benefit

Your family status determines the benefits payable at the time of the claim.

Spouse Amount = 50% of the Employee Voluntary ADD amount if no children
Spouse Amount = 40% of the Employee Voluntary ADD amount if children
Child Amount = 15% of the Employee Voluntary ADD amount if no spouse
Child Amount = 10% of the Employee Voluntary ADD amount with spouse