Understanding Your Life & Disability Insurance

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Life can be unpredictable and it’s important to be prepared so that you know your loved ones are taken care of in the event something happens to you. These can be difficult conversations for some people, but you have resources and support to navigate the process.

All benefit eligible employees of an agency, university or college, or political subdivision who participates in the State’s health plan are provided Basic Life Insurance by their employing agency. In addition to the financial benefit available to you or your family in the event something happens to you, the Basic Life policy also includes access to Short-Term and Long-Term Disability. Employees then have the option to purchase additional Voluntary Term Life (VTL) coverage.

To help you better understand each benefit, we’ve created brief summary documents for each:

  • Basic Life Insurance provides a death benefit equal to 100% of your annual salary for the employee, a $10,000 spouse benefit and a $5,000 child benefit.
  • Short-Term Disability (STD) is used when an employee is temporarily disabled and can’t work for a short amount of time, this benefit is used to replace a portion of the employee’s income. Examples of qualifying conditions include recovery after surgery and mental health condition.
  • Long-Term Disability (LTD) generally begins after short-term disability benefits end. Examples of qualifying conditions include cancer and accidental injuries.
  • Voluntary Term Life (VTL) may be purchased at 1x, 2x, or 3x your annual salary worth of coverage (maximum of $500,000) as well as additional spouse and child coverages available. VTL premiums are paid entirely by the employee. If you enroll more than 31 days after your initial date of hire, you will be required to provide Proof of Good Health for yourself and any dependents you add to this coverage.

You should keep a copy of all life insurance paperwork in a safe place at home, with your accountant, or a trusted family member. Your HR office will also have a copy of your beneficiary designation forms in your personnel file.

As a participant in the state’s Basic Life policy, you have access to Will & Legal Document Services at no charge. You and your spouse can create, print and store essential legal documents – such as a will, living will, healthcare power of attorney, durable power of attorney, and medical treatment authorization for minors. Plus, you can access estate planning tools and a personal information organizer. Check out the Principal Discounts & Extras on the Be Healthy page of the OGI website.

Have you been Married? Divorced? Had children? If so, when was the last time you reviewed the beneficiaries on your Basic and Voluntary Term Life policies? Keeping beneficiary designations up to date is an important part of a comprehensive estate plan. Set an annual date on your calendar to review your estate details!