Life Insurance

Life Insurance for you, your spouse, and your dependent children is available under the benefits program.


Basic Life Insurance Summary

Participation in the Basic Life Insurance plan is mandatory for all eligible employees. This includes permanent and term employees (term of one year or more) working at least 40% of a regular work week.

Under the plan, you receive life insurance for you, your spouse and for your eligible dependent children.

 

Basic Life Insurance for You

  • Coverage equal to two times your annual earnings, to a maximum of $1,000,000.
  • Pays a lump sum to your beneficiaries in the event of your death.
  • Coverage terminates at age 70.
  • If you have 10 years of service, you have the option to continue with reduced coverage at retirement.


Basic Life Insurance for Your Spouse and Children

  • Your eligible spouse is insured for $10,000.
  • Each eligible dependent child is insured for $5,000.
  • You are the beneficiary of any life insurance for your spouse and/or dependent children.

More information about your Basic Life Insurance coverage is available on the Life Insurance - Basic page.
 

Optional Life Insurance Summary

Additional Optional Life Insurance for you, your spouse, and/or your dependent children is available to permanent employees working at least 40% of a regular work week. Temporary and casual employees are not eligible for Optional Life Insurance coverage.

 

Optional Life Insurance for You and/or Your Spouse

Available in units of $10,000 to a maximum of $500,000.
$50,000 of coverage available without medical evidence if you apply for coverage within 60 days of becoming eligible.
All amounts over $50,000 require medical evidence and approval by the insurer.
All amounts applied for after 60 days of becoming eligible require medical evidence and approval by the insurer.
You are the beneficiary of any spousal coverage.


Optional Life Insurance for Your Dependent Children

Available in flat amounts of $2,500, $5,000 and $10,000.
If you apply later than 60 days, medical evidence is required on all amounts for dependent children.
You are the beneficiary of any dependent coverage.
More information about your Optional Life Insurance coverage is available on the Life Insurance - Optional page.

 

How do I Appoint a Beneficiary for my Basic and Optional Life Insurance?

Having a designated beneficiary(or more than one if you like) ensures that when you die, your wishes will be carried out instead of having your benefits paid to your estate. It is very important to ensure you always have a current beneficiary.

You must name a beneficiary for your Basic and Optional Life Insurance. To do so, you will need to give the full name of the beneficiary and the person's relationship to you (mother, father, brother, etc.).


There are several types of beneficiaries:

  • Revocable: You can change the name of the revocable beneficiary at any time and without his or her consent.
  • Contingent: Having a contingent beneficiary means you can name more than one beneficiary to receive benefits if the primary beneficiary dies.


For example:

When naming a beneficiary, remember:

  • Initial and date any changes or modifications you make on the form.
  • Always use a pen (not pencil).
  • Spell out all full names, and do not use abbreviations.
  • Conflicting or unclear beneficiary designations are not acceptable.
  • Review your beneficiary designations periodically, to make sure your choices still reflect your situation.
  • If you appoint a minor child as a beneficiary, be sure to fill in the "trustee designation" section on your enrolment form.


What if My Personal Status Changes due to Marriage, Divorce, etc. or I Wish to Change my Beneficiary?

If your personal status changes, complete the Personal Information Change Form - Group Insurance Benefits. Fill in the relevant sections and have your Benefits Administrator fill in the employer section. Your Benefits Administrator will then send the form to Group Benefits Solutions.

Follow the above process for any of these changes in your personal status:

  • To change your name, address or telephone number,
  • To change your marital status,
  • To change your spouse's name,
  • To add a dependent child or children,
  • To change your dependent child or children's status.


Remember to let your Benefits Administrator know right away if you have new dependents to be covered under the plan, so they will be covered without providing medical evidence.

  

What is the “Conversion Privilege”?

Your Basic Life Insurance and Optional Life Insurance coverage ends when you are no longer eligible or if your employment is terminated.

When this happens, you and/or your spouse have a "conversion privilege" which means you can convert your group policy to an individual one without providing medical evidence. Ask your Benefits Administrator for a copy of the conversion guidelines.

Basic Life Insurance and Optional Life Insurance for your eligible dependent children cannot be converted.

When you convert to an individual plan, the group Health Association premium rates no longer apply. Your new premium will be based on your age, gender, and smoking status.

You must apply to convert your coverage within 31 days from termination. Ask your Benefits Administrator to provide you with a completed Sun Life Conversion Privilege Notification form.

If you do not provide medical evidence of insurability when you apply to convert your coverage, you may purchase the following types of policies at standard premium rates:

  • Any permanent life insurance plan.
  • Term insurance to age 65.
  • Term insurance for one year. This plan can be converted to an individual plan.

If you do provide medical evidence of insurability and are approved by the insurer, you may purchase any type of insurance sold by the insurance company.

If you die during the 31 days you were eligible for conversion, life insurance benefits will be paid based on the assumption that you would have used your option to convert.

An employee who is terminally ill with a life expectancy of 24 months or less, may apply to receive up to 50% of the basic life coverage to a maximum of $100,000.  The insurer will require the written consent of irrevocable beneficiaries.  The payment is administratively treated as a loan and interest is charged.  The amount paid out and the total interest are deducted from the remaining life insurance benefit before payment is made to the beneficiary upon the employee's death.

If the employee is within 5 years of retirement, they may not be eligible or may be eligible for a reduced amount.  Please contact our office for further information.