Basic Term Life

  • Basic Term Life insurance coverage is included when you sign up for health coverage in the GBP. Employees receive a $5,000 policy. This coverage is not available to family members. The cost for Basic Term Life insurance is $2.22. The state contribution covers the total cost of the premium for a full-time employee.

    Securian (formerly known as Minnesota Life) is the administrator for Basic Term Life insurance.

    Basic Term Life Policy Claim

    In the event of your death, your beneficiary, other person designated by you, or a person lawfully authorized to represent your estate, must  contact ERS to obtain the instructions and forms required to file a claim for benefits.

    Basic Term Life AD&D Benefit

    Basic Term Life includes an accidental death and dismemberment (AD&D) benefit. The policy pays an additional AD&D benefit to your beneficiary.

    Accidental Death Benefit

    If you die as the direct result of an accidental Bodily Injury, the policy pays an additional AD&D benefit of $5,000. Report the death to ERS.

    Dismemberment Benefit

    If you have an accident and experience one of the bodily losses below as a direct result of the accident, you are eligible for Basic Term Life AD&D benefits.

    • Loss of your hand by actual severance through or above the wrist.
    • Loss of your foot by actual severance through or above the ankle joint.
    • Loss of your sight in one eye resulting in total and permanent loss of vision that cannot be recovered by surgery or other means.

    If one of the covered bodily losses occurs, you receive a benefit of $2,500. If two or more covered bodily losses occur at the same time, you receive a benefit of $5,000. Benefits are not paid if you independently loses one or more fingers, one or more toes, or incur a partial loss of sight. Steps to file a claim for dismemberment benefits.

    Accelerated Life Benefit

    If you are diagnosed with a terminal condition, and have a life expectancy of 12 months or less, you or your court-appointed legal representative may request payment of your Basic Term Life coverage amount to you in a single lump sum before your death.

    The amount of the payment will reduce your Basic Term Life amount to zero and no benefit will be payable at your death.

    Steps to file a claim for accelerated life benefit.

    Extended Life Insurance Benefit

    Your coverage may be continued without payment of any premiums if you are younger than 60 and:

    • become totally disabled for six continuous months or more, and
    • cannot be gainfully employed in any occupation.

    You must apply for this benefit within 6-18 months from the onset of your disability.

    Steps to file a claim for Extended Life Insurance Benefit.

    Viatical Settlement Option

    If you are diagnosed with a terminal condition, you may enter into a Viatical Settlement. A Viatical Settlement makes a Viatical Settlement provider the permanent beneficiary of the life insurance benefits at the time of death in exchange for a payment of a percentage of your Basic Term Life benefits now.

    You will need to research and select a Viatical Settlement provider. Upon your death, payment will be made to the Viatical Settlement provider if your life insurance is still in force.

    Note: If you are diagnosed with a terminal condition, you may elect to receive payments under the Viatical Settlement Option only if you have not previously received an Accelerated Life Benefit. Please consider your situation carefully before making your selection. 

    Conversion Privilege

    You may convert your Basic Term Life insurance to an individual policy if:

    • your employment ends for any reason, or
    • you are no longer eligible for Basic Term Life coverage.

    The individual life insurance policy does not include the:

    • Extended Life Insurance Benefit,
    • AD&D benefit, or
    • Accelerated Life Benefit.

    Note: Life Evidence of Insurability is not required if you apply for the individual life insurance policy and pay the first premium within 31 days after your group policy ends.