Employee Life Insurance provides Basic and Optional Life Insurance, as described below. The maximum Employee Life Insurance benefit payable is $500,000.
Basic Life Insurance
You are automatically insured for one unit of Basic Life Insurance coverage after three months of continuous employment as an eligible employee. This coverage is paid for by your employer. The benefit is equal to your gross basic annual earnings* rounded up to the nearest $1,000.
Optional Life Insurance
In addition to the employer-paid Basic Life Insurance, you have the option to choose and pay premiums for up to three units of Optional Life Insurance, which may be subject to evidence of insurability requirements. For further information, please visit the Administrative Practices section. Each unit is equal to one times your gross basic annual earnings* rounded up to the nearest $1,000.
Example of Employee Life Insurance Benefit Coverage
An employee has 1 unit of Basic Life Insurance plus 2 units of Optional Life Insurance for a total of 3 units of Insurance and their bi-weekly earnings are $1,315.19.
Average of bi-weekly earnings over 13 pay periods:
$17,097.52 / 13 = $1,315.19
Multiplied by 26:
$1,315.19 x 26 = $34,194.94
$35,000 (coverage per unit of Life Insurance)
$35,000 x 3 units = $105,000 total benefit coverage.
* Gross basic annual earnings are the average of your biweekly earnings over the last 13 pay periods, multiplied by 26. The amount of your Employee Life Insurance benefit will be affected by recent periods of employment in which you did not pay premiums or in which your income was reduced.