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Exempt Employee Life Insurance benefits effective July 1, 2012 through December 31, 2013

The current basic and supplemental life insurance contracts with The Standard and Prudential are scheduled to expire on December 31, 2013. The Ohio Department of Administrative Services is in the process of bidding both the basic and supplemental life insurance programs. Once a vendor is selected for the basic life insurance program,the website will be updated regarding the vendor name and contact information. Once a vendor is selected for the supplemental life program, the website will be updated and communications will be sent to all employees regarding the vendor, open enrollment process and the new rates.

Should a new supplemental life insurance vendor be selected, employees currently enrolled in supplemental life insurance coverage will automatically be enrolled at the same coverage level.

Life Insurance provided by The Standard.

Bargaining Unit Employees, click here to access Union Benefits Trust website.

Supplemental Life Insurance provided by Prudential

Click here for Life Insurance information prior to July 1, 2013. 


The State of Ohio provides certain exempt employees who have more than one year of continuous state service with basic term life insurance benefits. Life insurance is designed to provide financial help to your family should you die unexpectedly, which typically replaces approximately one year of income that would have been generated by your job.

For questions about basic life insurance, please contact The Standard at 1.866.415.9518.

As an exempt state employee, your basic life insurance is provided to you at no cost and with no evidence of insurability. The current provider for exempt employee basic life insurance is The Standard. Some key points about the policy include:

1. The amount of life insurance is equal to one times the employee’s annualized rate of pay, rounded up to the next closest $1,000.
2. There is no cash value or surrender value under this policy.
3. In the event of death while performing normal state of Ohio job duties, beneficiaries may be eligible to receive twice the employee’s annualized rate of pay under the accidental death provision of the policy.
4. The policy also includes a dismemberment benefit, while performing normal state of Ohio job duties, which can provide a portion of the death benefit to the employee for the loss of vision, hearing, a limb or other covered loss.
5. Enrollment in the plan is automatic. Employees simply need to designate one or more beneficiaries when they are notified they have become eligible for the plan. Coverage is not available under this plan for spouses or dependent children.
6. Eligibility for the plan ends on the last day of the month in which you cease to be employed by the state.
7. Conversion to an individual policy is an option when you leave state service.

For more details, refer to The Standard's Certificate of Coverage.

Click the links below to access the information you need quickly.

How Do I Receive Payment of Benefits?
How Much Coverage Do I Have?
Accelerated Death Benefits
Eligibility
Beneficiary
Conclusion of Coverage

How Do I Receive Payment of Benefits?
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:

* The 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 The Standard Insurance Company regarding available plan options.

How Much Coverage Do I Have?
The benefit amount provided is:

An amount equal to your annualized rate of pay rounded to the next highest thousand. Annualized rate of pay 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 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. 

For an Accelerated Benefit Application contact The Standard at 1-866-415-9518.

Eligibility
Basic life insurance is provided to:

  • All permanent exempt employees of the state of Ohio, both full-time and part-time, who have completed one year of continuous service;
  • Established-term regular employees; and
  • Judges and other elected or appointed officials of the State of Ohio serving fixed terms of office.

Continuous state service means the uninterrupted service in which an employee is paid directly by warrant of the director of budget and management where no break in service occurs. The following qualifications apply:

  • Reinstatement to state employment within 31 days does not constitute a break in continuous service.
  • Employees on authorized disability leave before the one year of continuous service is complete will be credited with the period of service prior to their leaving once employment resumes (the time spent on disability leave does not count).
  • Re-appointment within one year of the effective date of a layoff will be considered as having satisfied the waiting period.

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 will 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.

When you become eligible for basic life insurance, 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 The Standard Insurance Company at the address on the form.

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 The 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.

Conclusion of Coverage
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 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 time you are laid off. You can find the form (ADM 4302) online, or from your personnel office.

After the first year, the policy can be converted to an individual 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, your basic life insurance coverage will terminate and you will 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 basic (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 remain level. You may not convert the occupational accidental death and dismemberment feature of your coverage.

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. The employee can port coverage if they are not disabled at the time of separation from service and are under the age of 65. The employee would need to have been insured under the group’s policy for at least 12 consecutive months. This is term life coverage and the maximum amount that can be converted is $300,000 or the current face amount, whichever is less. The minimum amount is $10,000. 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).
Basic Life Insurance forms including the Application for Portability form are available to download here.

Supplemental Life Insurance
Bargaining Unit Employees, click here.

Click the links below to access the information you need quickly.

Rates
Enrollment and Eligibility
How Do I Collect Benefits?
Beneficiary
Computing Your Monthly Costs
Conclusion of Coverage
Portability
Reduction of Benefits
State of Ohio Exempt Employee Group Number

Exempt State of Ohio employees are eligible to enroll in a supplemental life insurance program, administered by Prudential, at their own cost. This benefit is available upon hire (there is no waiting period) and provides benefits in addition to the state-paid basic life insurance policy that becomes effective after one year of continuous state service.

For questions about exempt supplemental life insurance, please contact Prudential at 1-800-778-3827.

Some key points about the policy include:
•The minimum electable benefit is $10,000.
•The maximum benefit available is up to eight times your annualized rate of pay, or $600,000 - whichever is less.

•Note: Some levels of coverage will require that you provide evidence of insurability (proof of good health). However, you may increase your coverage at open enrollment to the lesser of two times your basic annual earnings or $150,000 without providing proof of good health.

•You may purchase life insurance for your spouse up to $40,000. Spousal coverage in excess of $10,000 requires proof of good health.
•You may also purchase life insurance for your dependent children up to $7,000.
•Supplemental life insurance is portable.
*Supplemental life insurance information on this page, including rates, is effective July 1, 2012 to June 30, 2013.

Rates

The rates listed in the chart below are in effect for the period July 1, 2012 through June 30, 2013.

Supplemental Life Insurance Example:
Tom is 38 years old and a non-smoker. He decides to buy an additional $40,000 in coverage for himself and $20,000 in coverage for his wife (who is 40 years old and a smoker).

The cost of Tom’s supplemental coverage is 74 cents per $10,000 of coverage, for a monthly cost of $2.96 (4 x 74 cents = $2.96).

The monthly cost for Tom’s wife is $1.58 per $10,000, or $3.16 (2 x $1.58 = $3.16).

 Enrollment/Eligibility
Full-time permanent employees, part-time permanent employees, judges and other elected officials serving fixed terms of office are eligible for supplemental life insurance benefits. To be eligible, you must be actively at work and performing your normal duties on the effective date of coverage.

1. At Open Enrollment Without Evidence of Insurability
If you are purchasing supplemental life for the first time, you may buy up to two times your annualized rate of pay or $150,000, whichever is less. If you are currently enrolled, during open enrollment you may increase your coverage in $10,000 increments up to two times your annualized rate of pay or $150,000, whichever is less.

2. At Open Enrollment With Evidence of Insurability
During open enrollment, you may buy up to eight times your annualized rate of pay or $600,000, whichever is less, with evidence of insurability.

3. At Hire
As a new employee, you have 90 days from your date of hire to purchase coverage up to three times your annualized rate of pay or $500,000, whichever is less, without evidence of insurability; however, with evidence of insurability you may purchase up to eight times your annualized rate of pay or $600,000, whichever is less. If you apply for more than the allowable amount of coverage (an amount that requires you to submit evidence of insurability), you will initially be approved for the maximum allowable amount that can be purchased without evidence of insurability. Prudential will send you a Health Statement Questionnaire that must be completed and returned before the additional amount will be considered.

4. For Your Dependents
To elect supplemental life insurance for your dependents, you must be covered under or enrolled in supplemental life insurance for yourself. You can purchase supplemental life insurance for your spouse and children:

• At open enrollment; or
• Within 90 days of hire; or
• Within 31 days of acquiring a new dependent.

Supplemental life insurance provides up to $40,000 coverage for your spouse; $10,000 is available without evidence of insurability. If you apply for $20,000, $30,000 or $40,000 in coverage for your spouse, Prudential will mail you a medical questionnaire that must be completed and returned to them.

Supplemental life insurance up to $7,000 for each child at least 15 days of age and younger than age 23 is available for a single monthly premium of 99 cents. No evidence of insurability is required.

 How Do I Collect Benefits?
When a covered employee dies, benefits are paid to the beneficiary (or beneficiaries) on file. When a covered dependent dies, benefits are payable to the covered employee upon written proof of death. To file a claim, please call Prudential at 1.800.778.3827.

Accelerated Death Benefits
If you have been diagnosed with a terminal illness and according to your 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 50 percent of the supplemental life policy amount, up to $75,000.  Accelerated death benefits are not available for spouse or dependent coverage. To inquire, please call Prudential at 1.800.778.3827.

Beneficiary
Benefits are paid to your designated beneficiary in the event of your death. You may name or change your beneficiary at any time by completing a beneficiary form and mailing it to Prudential. If you run out of room on the form, you may submit additional beneficiaries on a separate note; all attached notes must be signed and dated. Your change is not effective until the plan receives your documentation.

If you do not name a beneficiary or none of your designated beneficiaries survive you, 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 you elect dependent life coverage, you are automatically the beneficiary of your spouse and children.
If you list more than one beneficiary, payment will be divided evenly among them unless you requested otherwise. You may change your beneficiary at any time by completing the change information on the Supplemental Life Insurance enrollment form.

Computing Your Monthly Costs
The monthly cost for supplemental life insurance for you and your dependents is based on age, amount of coverage you select and whether or not you or your spouse use tobacco products. Use this worksheet and the rate chart to determine your monthly contributions.

Click here to view and print the Computing Your Monthly Costs worksheet

During Disability Leave
Your monthly deductions for supplemental life insurance will continue while you are on disability and receiving a paycheck with sufficient funds to cover the premium amount.

IMPORTANT NOTE: You may need to contact Prudential to make direct pay arrangements if your monthly deduction was not taken out while you were in a “no pay” waiting period.

During Leave Without Pay
You must contact Prudential at 1-800-778-3827 to make direct payment arrangements when you are in a “no pay” status. If you fail to do so, your coverage will lapse and you must wait for the next open enrollment period to re-enroll. If your coverage lapses, you may not qualify for the limits you previously carried.

Separation from State Service
Once you are no longer employed with the State of Ohio, through any means except layoff, the supplemental 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 to An Individual Policy
If you are separated from state employment, you have the option of converting your supplemental life insurance to an individual policy, without furnishing medical evidence of insurability. You must apply for the individual policy, and submit the first premium payment to the insurance company within 31 days of your separation from state employment. If you would like to make the conversion, you must call Prudential at 1-800-778-3827. Contact a local Prudential representative by visiting prudential.com or download the Conversion Privilege Form, Supplemental Group Life.

Portability
In lieu of the conversion feature, you are eligible to take advantage of the portability feature. Portability is an option that enables you to obtain similar Prudential group term life insurance coverage after you terminate employment. You must apply for the portability option within 45 days of your termination date of coverage. Evidence of insurability is not required to become insured for continued coverage. However, if you submit evidence and Prudential decides the evidence is satisfactory, you will pay lower premium rates.

Click here for portability rates.

Reduction of Benefits (Portability)
The amount of life insurance under the portability feature reduces on the basis of attained age as follows:
• At age 65, the benefit reduces to 65 percent;
• At age 70, the benefit reduces to 50 percent; and
• At age 75, the benefit reduces to 25 percent; and
• In no case will the amount of insurance be less than $5,000.

State of Ohio Exempt Employee Group Number
When contacting Prudential, you may be asked to provide your group number. The group number for State of Ohio exempt employees is: LG-93046-OH.

General Contact

Department of Administrative Services
30 East Broad Street, 27th Floor
Columbus, Ohio 43215
614-466-8857 Local
800-409-1205 Toll Free

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