Life Insurance

Basic Group Life Insurance

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 Securian Financial. Eligible employees may purchase additional life insurance coverage (Optional Life) for 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 their spouse and children.

Cost

The City pays 100% of the cost of employee Basic Group Life coverage.

Coverage

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.

Beneficiary Information

Is it necessary to complete a beneficiary form?

Completing a beneficiary form is highly encouraged. Remember to update your beneficiary form in the case of a life event such as a divorce or the birth/death of a family member. Beneficiary information is maintained 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 and 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 through their myVRS account.

Optional Group Life Insurance

The VRS Optional Group Life Insurance program provides additional life insurance protection at attractive group rates. Premiums for the employee and the spouse are based on the age of the insured person. Eligible employees can purchase additional coverage up to four times the annual base pay, not to exceed $800,000. Spouses can be covered up to 50% of the employee's coverage. Optional Life coverage for children can be $10,000, $20,000, or $30,000, depending on the option chosen.

For more information, refer to the following resources VRS website, Optional Life Booklet, VRS Certificate of Coverage (PDF).

Life Insurance Coverage at Retirement

Group life insurance will begin reducing based on the last month of employment. The reduction rate is 25% each January 1 until it reaches 25% of the total life insurance benefit value at retirement.

Questions

Call Securian Financial toll-free at 800-441-2258.