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    Life Insurance

     

    Eligibility
    Employees holding full-time positions are automatically enrolled in Basic Group Life Insurance as a part of their VRS benefit. The VRS group life administrator is Minnesota Life. Eligible employees may purchase additional life insurance coverage (Optional Life) on themselves, their spouse and their children in increments of 1, 2, 3 or 4 times their annual base pay. Employees must purchase Optional Life insurance on themselves in order to cover spouse and children.

    Making Changes
    Employees may submit an application to enroll or request a change to increase, decrease, or terminate Optional Life coverage at any time. To enroll or increase coverage, employees must also complete an evidence of insurability form.

    Costs
    The City pays 100% of the cost of employee Basic Group Life coverage. Employees may
    purchase Optional Life insurance coverage for eligible family members at their own expense.

    What's Covered?
    Basic Group Life:
    Beneficiaries of eligible employees are entitled to receive two times the employee's annual base pay in the case of natural death and four times in the case of  accidental death. For more information refer to VRS Certificate of Coverage or VRS Member Handbook or Public Safety VRS Member Handbook.
    Optional Life:
    Eligible employees can purchase additional coverage up to four times annual base pay, not to exceed $600,000. Spouse can be covered up to 50% of employee's coverage. Optional Life coverage for children can be $10,000, $20,000 or $30,000 depending on option chosen. For more information, refer to the Optional Life Booklet or the VRS Certificate of Coverage.
    Beneficiary
    Is It Necessary to Complete a Beneficiary Form?

    No, but if you do, you must remember to update your beneficiary if you have a family situation change such as a divorce or birth/death of a family member.  Beneficiary information is maintain by VRS.

    In the event of an employee's death, if there is no beneficiary designation on file, VRS benefits are paid in the following order of precedence:

            •    Spouse
            •    Children & Descendants of Deceased Children
            •    Parents
            •    Appointed Executor or Administrator of the Estate
            •    Other Next of Kin

    Employees may change their beneficiary at any time by submitting a beneficiary form to Human Resources or by sending directly to VRS. 

    What Happens to My Life Insurance Coverage If I Leave?
    Employees who meet the plan's eligibility requirements may continue optional life coverage upon separation. Application must be submitted to Minnesota Life within 31 days of separation.

    Life Insurance Coverage at Retirement
    Group Life coverage continues for eligible retiring employees, reducing to 25% of the value at retirement in five years.
    Retiring employees who meet VRS eligibility requirements must complete a continuation form to continue their optional life coverage in retirement.

    Questions?
    Call Minnesota Life toll free at 800-441-2258.

     

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