Human Resources
Quinn Administration, 03, 00076
p. 617-287-5150
f. 617-287-5179
Life Insurance/Death Benefits
Basic Life Insurance
Coverage begins on the first of the month following sixty (60) days of employment or two (2) calendar months, whichever is earlier. Insurance consists of $5,000 term life insurance and $5,000 accidental death and dismemberment insurance. If an employee chooses health insurance coverage, participation in the Basic Life Insurance plan is mandatory. However, it is possible to carry Basic Life Insurance without health insurance. If an employee chooses not to take Basic Life/Health Insurance, he/she must sign a waiver form and cannot apply for this insurance coverage until an Annual Open Enrollment period. The monthly premium cost for Basic Life Insurance is $1.33 for employees hired after June 30, 2003, $1.06 for employees hired on or before June 30, 2003 with an annual salary as of February 1, 2004 or $35,000 or more and $.80 for employees hired on or before June 30, 2003 with and annual salary as of February 1, 2004 of less than $35,000.
Optional Life Insurance
Employees insured for Basic Life Insurance are offered the opportunity to purchase additional life insurance to supplement the $5,000 basic policy. The amount of life insurance you may purchase depends on your base salary. You may purchase life insurance in amounts up to eight (8) times your annual base salary. The maximum amount of optional life insurance an employee may carry is $1,200,000.00.
If you choose optional life insurance in amounts from two (2) times to eight (8) times your annual salary, this selection provides for an automatic increase of your optional life insurance each time your base salary increases. If you select optional insurance at one (1) times your annual salary, you may choose to have this insurance increase as your salary does or you may choose to have the amount remain fixed at its current level. You may also choose optional life insurance in thousand dollar increments up to one (1) times your annual salary.
If you do not choose the Automatic Increase option, or if you do not choose any optional life insurance, you will have to satisfy a one-year waiting period and provide proof of good health in order to increase or obtain coverage. It will also be necessary to satisfy a one-year waiting period and provide proof of good health if you wish to increase the multiple you have chosen (i.e., one times to seven times your annual base salary).
Accelerated Life Benefit
If an employee or retiree becomes terminally ill while insured for Life Insurance under the Commonwealth of Massachusetts policy, he or she may elect an advance payment of the proceeds of the life insurance amount, not to exceed 75% of the total benefit. This policy feature provides the insured with the opportunity for financial assistance at a crucial time. Insured employees are eligible for this benefit if the attending physician provides satisfactory evidence that the insured has a life expectancy of 12 months or less. The remaining 25% will be paid to the designated beneficiary at the time of death.
Premium Rates - Optional Life Insurance for Active Employees
As of October 1, 2005 the monthly premium rates for optional life insurance are as follows:
Monthly Cost
Age of Employee |
Monthly Cost per $1,000 of Coverage |
|
Smoker |
Non-Smoker* |
|
Under age 35 |
$ .10 |
$ .06 |
age 35 - 44 |
.15 |
.07 |
age 45 - 49 |
.25 |
.10 |
age 50 - 54 |
.40 |
.16 |
age 55 - 59 |
.62 |
.24 |
age 60 - 64 |
.94 |
.36 |
age 65 - 69 |
1.68 |
.89 |
age 70 and over |
3.00 |
1.39 |
*Must be smoke-free for twelve months prior to effective date of coverage to qualify for non-smoker rates.
To arrive at your monthly premium cost, use the following formula:
1. Multiply your annual base salary times the multiple chosen (2x, 3x, 4x, etc.). In the examples shown above, the multiple is 4x. Round down to the next $1,000 and subtract $1,000.
2. Find the monthly rate for your age (chart shown above). Multiply the amount of life
insurance by the monthly rate. This is your monthly premium.
The following chart shows how the cost of Optional Life Insurance at four (4) times base salary is calculated for employees at various ages and salary levels. (based on non-smoker rates)
Annual Benefit
Annual Base Salary |
Benefit Amout |
Employee's Age |
|
$ 17,000 |
$ 67,000 |
32 |
67 x .06 = $ 4.02 |
$ 30,250 |
$120,000 |
36 |
120 x .07 = $ 8.40 |
$ 60,200 |
$239,000 |
47 |
239 x .10 = $ 23.90 |
$ 80,125 |
$319,000 |
50 |
319 x .16 = $ 51.04 |