Life Insurance for retirees

September 12, 2022

daughter sitting outside with father at table with laptopWhile your financial needs, goals and dreams may change, protecting your loved ones will always be important.

Life insurance can help with medical costs and final expenses.

The Texas Employees Group Benefits Program (GBP) has three types of life insurance for retirees:

  • Basic Term Life Insurance,
  • Optional Term Life Insurance and
  • Retiree Fixed Optional Life Insurance.

Retirees automatically get Basic Term Life Insurance if they’re enrolled in a GBP health plan. The type of optional life insurance they have depends on what they had as employees or their decision when they retired.

Plan benefits

  • Basic Term Life Insurance pays $2,500 to your beneficiary upon your death. Find more information about Basic Term Life Insurance.
  • Optional Term Life Insurance provides additional coverage — up to two times your annual salary when you retired (Election 1 or 2). The monthly premium is based on your coverage election, your salary and your age. Maximum coverage is $400,000, and coverage begins to decrease when you reach age 70.
  • Fixed Optional Life Insurance pays $10,000 to your beneficiary upon your death and has a set monthly premium.

If you are currently enrolled in Optional Term Life Insurance, you can decrease your coverage to Election 1 (if applicable) or Fixed Optional Life Insurance at any time. If you are not enrolled in optional life insurance and want coverage, you can apply only for Fixed Optional Life Insurance during your enrollment period or within 31 days of a qualifying life event. You must apply through evidence of insurability, and coverage isn’t guaranteed.

Learn more about optional life insurance for retirees. Find out more about evidence of insurability.