Eligible employees are automatically enrolled in a basic group life insurance plan but it's recommended that you designate a beneficiary. If you do not designate a beneficiary, the benefit will be paid to your estate. You may also apply for optional coverage for your spouse and dependents
Your employee basic life insurance pays a benefit to your beneficiary in the event of your death. The amount of insurance for most employees is three times your annual salary or $80,000, whichever is greater. Employee basic life insurance is mandatory and you do not need to enrol. You should complete a Beneficiary Designation Form (PDF, 269KB). Coverage begins automatically upon meeting eligibility requirements and is effective 24/7.
Features of the Plan
- Employee Basic Life Insurance
- Optional Spouse and Dependent Insurance
- Accidental dismemberment and loss of sight benefit
- Advanced payment for terminally ill employees
- Funeral advance
- Conversion policy available when coverage ends
Designating a Beneficiary for Your Life Insurance
Choosing to nominate a beneficiary versus nominating your estate as beneficiary is a personal decision and is based on each individual's unique circumstances. Here is what you need to be aware of so you can make the best decision for you:
- If you nominate one or more beneficiaries, they have the ability to request a funeral advance if required. When paid to beneficiaries, the benefit payment is not subject to tax and payment occurs relatively quickly
- If you nominate your estate, there is no ability for anyone to receive a funeral advance and the benefit payment becomes part of the proceeds of your estate. As such, the benefit payment is subject to probate, and can be used to pay outstanding debts, taxes and other estate costs. It generally takes longer for the benefit to be paid out through the estate. If you do not complete a Beneficiary Designation Form (PDF, 269KB), the benefit payment will be made to your estate in the event of your death
Optional Spouse & Dependent Life Insurance
This insurance provides spousal coverage of $10,000 and dependent child coverage of $5,000 per dependent child to the employee (beneficiary). You must apply for this coverage within 90 days of becoming eligible for benefits or acquiring your first dependent (spouse or child), otherwise you will need to complete a medical information questionnaire.
Read the Bargaining Unit Benefits Guide (PDF, 572KB) for more information.