Understanding your life insurance needs

Understanding your life insurance needs

September 8, 2020

Important information for people over 70

You generally have the greatest need for life insurance during your working years, when your family relies heavily on your paycheck. However, you may continue to have financial obligations after you retire. Group term life  insurance may be a good way to help protect your family’s financial future.

If you have health insurance through the Texas Employees Group Benefits Program (GBP), your benefit includes Basic Term Life Insurance that pays $2,500 to your beneficiary upon your death. Other options are Optional and Dependent Term Life Insurance and Retiree Fixed Optional Life Insurance.

graphic--text"Insurance needs in retirement.Optional Term Life: If you were enrolled in Optional Term Life when you retired, you may have decided to continue that coverage at up to two times your annual salary (with a maximum of $400,000). Be aware that once you turn 70, your coverage is subject to age-based benefit reductions. Meanwhile, your premium rates increase with age (as they do during active employment). If your coverage amount decreases to $10,000 or less, the plan automatically converts to Retiree Fixed Optional Life, which has a fixed premium.

Fixed optional life: If you were not enrolled in Optional Term Life Insurance when you retired, you may be eligible to enroll in Retiree Fixed Optional Life Insurance, which is a $10,000 benefit that does not decrease with age. Evidence of Insurability (EOI) is required for this election.

You can start the EOI process through ERS OnLine or by calling ERS customer service. Securian, the plan underwriter, will mail or email (you choose) the EOI application. You can drop optional and/or dependent coverage at any time; you don’t have to wait for an enrollment period or qualifying life event (QLE).

Visit the Securian website to review a plan overview and learn more about coverage options and EOI requirements for you and your dependents.