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Williams College Group Insurance Plan

Group Insurance Plan . | . Human Resources

Life Insurance and Accidental Death & Dismemberment Benefit (AD&D)

All eligible faculty and staff are automatically covered under the College's basic group life insurance and accidental death and dismemberment plan and may choose to be covered under the supplemental life insurance plan. To be covered, under the supplemental life insurance plan, employees must complete an enrollment form within 31 days of hire or eligibility, whichever comes later, although employees may enroll at a later time, with some restrictions. More information about this benefit may be obtained from the Benefits Office.

Life insurance for dependents is available only for those employees who choose supplemental life insurance for themselves.

Basic Life Insurance and Accidental Death and Dismemberment Benefits

The College pays the full cost for eligible employees' basic coverage, in the amount of $50,000. The employee must complete an enrollment form designating a beneficiary. The basic coverage is not taxable.

An employee's basic coverage will be reduced to the following amounts on the first of the month which occurs on or next follows the date you attain:

Age

Amount of Life Insurance

65

$41,000

70

$27,000

75

$18,000

80

$13,500

85

$10,500

90

$ 8,500

95

$ 6,000

Supplemental Life Insurance Plan

Faculty, Administrative and Support Staff wanting more than the basic life insurance coverage may purchase supplemental life insurance. Appendix 2 is a Supplemental Life Insurance Worksheet (PDF file)is a worksheet that may assist in determining the amount of life insurance one needs. The amount of supplemental life insurance must equal a whole multiple of the employee's salary, from one through five, with a maximum benefit of $1,000,000. Salary means:

  • Faculty: contract salary plus salary supplement for department/program chairs
  • Administrative Staff: contract salary
  • Support Staff: base pay (overtime pay is excluded)

No medical evidence of insurability is required for supplemental life insurance requests equal to one, two, and three times an employee's salary, with a maximum benefit of $300,000, as long as application is made within 31 days of eligibility or hire, whichever comes later. Requests for supplemental coverage greater than $300,000 or amounts equal to four or five times an employee's salary require evidence of insurability satisfactory to the insurance carrier, as does the entire amount of coverage if application is made more than 31 days after an employee's date of hire or eligibility.

The employee's optional life insurance amounts will be reduced by the following percentages on the first of the month which occurs on or next follows the date you attain age 65. Reductions beyond age 65 are calculated as an additional percentage of what was reduced at age 65.

Age

Reduction

65

18%

70

35%

75

35%

80

25%

85

25%

90

25%

95

25%

Supplemental Life Insurance Cost

The amount an employee pays for supplemental life insurance is based upon his or her age and will increase as the employee ages. Appendix 3 is a Cost Calculation Form (PDF file), which includes the rates for each age group. This form may be used to help calculate the monthly cost for the desired amount of supplemental life insurance. This premium will be deducted from the employee's pay on an after-tax basis. Because supplemental life insurance is a multiple of salary, the amount of coverage and the premium will change on the first of the month which occurs on or next follows your birthday, when salaries change or when a salary status change occurs.

Dependent Life Insurance

Life insurance for dependents is available only for those employees who choose supplemental life insurance for themselves. The premium will be deducted from the employee's pay on an after-tax basis.

Employees may cover their spouse or same-sex domestic partner for one of the following amounts, not to exceed 50% of the amount of supplemental life insurance on the employee: $10,000, $20,000, $30,000, $40,000, or $50,000. Evidence of insurability satisfactory to the insurance carrier is not required if an employee wants to cover a spouse or same-sex domestic partner and applies for coverage within 31 days of the employee's date of hire or eligibility, whichever comes later. With some exceptions, evidence of insurability will be required if an employee wants to cover a spouse or same-sex domestic partner but application for coverage is made after the 31-day period.

The Cost Calculation Form (PDF file), in Appendix 3 may be used to help calculate the monthly cost for spouse/same-sex domestic partner life insurance. This cost is a function of the employee's age, not the spouse/same-sex domestic partner's age.

Any Faculty, Administrative Staff or Support Staff member may also purchase dependent life insurance on their dependent child(ren) between the ages of 15 days and 23 years, although certain rules regarding financial support and schooling apply for dependents who are 19 or older. An employee may also be able to cover a disabled child who is 19 or older and is dependent on the employee for financial support. The amount of life insurance available is $5,000 per dependent who is 6 months of age or older, and $100 per dependent who is at least 15 days old but less than 6 months old.

Changing Life Insurance Coverage

Employees purchasing supplemental life insurance may, at any time, decrease or stop their coverage, by submitting their request in writing to the Benefits Office.

To increase supplemental life insurance coverage after the initial 31 days of eligibility, employees must provide evidence of insurability to the insurance company. Evidence of insurability will not be required in certain cases where an employee wants to add spousal coverage within 31 days after the birth of the employee's first child, and in certain cases where a spouse or dependent has lost other life insurance coverage provided by another employer. Requests for supplemental coverage greater than $300,000 or amounts equal to four and five times an employee's salary require evidence of insurability satisfactory to the insurance carrier up to a maximum of $1,000,000.

The Accelerated Death Benefit

The accelerated death benefit allows early payment of life insurance on a covered employee or dependent who is diagnosed as terminally ill with a life expectancy of 12 months or less. Details about the accelerated death benefit are available in the Benefits Office.

How to Apply for Life Insurance Benefits

To file a claim for life insurance benefits, the beneficiary should make a written request for benefits, accompanied by an original copy of the death certificate. This request should be forwarded to the Benefits Office as soon as reasonably possible.  When a claim for supplemental life insurance is requested, the calculation will made based upon the employee's salary when a leave of absence/sabbatical begins and does not incorporate any salary increases while on a leave of absence/sabbatical.

Converting Life Insurance

Employees may convert their group life insurance (not including AD&D) to a conversion policy within 31 days after termination of employment. Details are described in the Group Life Insurance Certificate. Employees can also contact the insurance carrier directly for more information.

Accidental Death and Dismemberment Benefits

Employees are automatically covered for up to $50,000 of accidental death, dismemberment, and loss of sight benefits. An employee's AD&D coverage will be reduced to the following amounts on the first of the month which occurs on or next follows the date you attain:

Age

Amount of AD&D Coverage

65

$41,000

70

$27,000

75

$18,000

80

$13,500

85

$10,500

90

$ 8,500

95

$ 6,000

Under AD&D coverage, an employee will receive a benefit if he or she suffers an accidental injury, where the injury or loss occurs within 365 days after the date of the accident. No benefit will be paid for a loss or injury caused by or contributed to by: sickness, disease, or medical treatment for sickness or disease; infection; war; an injury received while in the armed service of a country which is at war or engaged in armed conflict; any intentionally self-inflicted injury, including a suicide attempt; taking drugs, unless they are administered by a licensed physician; or the injured person's intoxication.

Benefits include the following:

INJURY OR LOSS

BENEFIT

Loss of life

$50,000

Loss of a hand

$25,000

Loss of a foot

$25,000

Loss of an eye

$25,000

Loss of speech or hearing

$25,000

Loss of thumb and index finger on either hand

$12,500

Quadriplegia

$50,000

Loss of movement of three limbs

$37,500

Loss of movement of legs (paraplegia)

$37,500

Loss of movement of both upper and lower limbs on one side of the body

$25,000

Loss of movement of one limb

$12,500

More than one of the above resulting from one accident

The lesser of $50,000 or the sum of benefits payable for each loss

In certain situations, the above benefit will be increased if an employee sustains an injury or loss while riding in an automobile while wearing a seat belt or while riding in an automobile in which an air bag deploys.

For detailed information, see the Basic Life Group Benefit Plan Document (PDF file)


Group Insurance Plan . | . Human Resources

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