Life insurance plans for excluded employees

Life insurance plans help protect you and your loved ones from the financial burden of a loss. The Flexible Benefits Program provides a basic level of life insurance plus the opportunity to buy additional optional life insurance for you and your dependants.

On this page

• Life insurance benefits at a glance
• Life insurance plans overview
• How to make a claim

Life insurance benefits at a glance

Everyone is unique and has different needs for benefits. There are several choices in the Flexible Benefits Program that enable you to create a benefits package to meet your needs.

For each benefit, you’ll either select the option that best meets your needs, or you’ll waive coverage. The exception is with Employee Basic Life Insurance, you must maintain a minimum ($25,000) level of coverage.

The following tables summarize the coverage in each option of each life insurance plan. For your convenience, we’ve included annual net pricing information with each table.

If the cost of the option you choose is less than the fully funded option, you’ll have leftover flex credits. The annual price will show a dollar amount credit (for example, $54.00 CR).

If the cost of the option you choose is $0, this is the fully funded option.

Evidence of insurability is not required on initial enrolment but is required for any future increases.

*Premiums are not locked in at the rate in place when application is made and will change as the age of the enrolled individual changes.

You must choose Enhanced Employee Basic Life Insurance to apply for this coverage for yourself.

During initial enrolment, you have 31 days to apply for up to $50,000 of Employee Optional and/or Spouse Optional Life Insurance evidence free. 

Evidence of insurability is required for any amount over $50,000 during initial enrolment and for all future increases. Applications must be approved before coverage can begin.

Tips

• Remember to designate a beneficiary for your group life insurance
• Don’t forget to update your benefits coverage as your personal circumstances change
• Naming a beneficiary for your Public Service Pension Plan is a separate process from nominating your group life insurance beneficiary. For more information, contact the Public Service Pension Plan

Life insurance plans overview

Canada Life [Policy 6878GL(5)] administers your life insurance plan on behalf of your employer.

This life insurance plan pays a benefit to your designated beneficiary, or to your estate, in the event of your death.

Coverage is effective 24 hours a day, 7 days a week.

This policy is a term life insurance policy and has no cash value.

Features of the plan include:

• Employee Basic Life Insurance
• Accidental Dismemberment & Loss of Sight Benefit
• Advanced payment for terminally ill employees
• A funeral advance option for the beneficiary
• A conversion policy

You have the option to purchase other optional life insurance plans, which includes:

• Optional Family Funeral Benefit
• Employee Optional Life Insurance
• Spouse Optional Life Insurance
• Child Optional Life Insurance
• Employee Optional Accidental Death & Dismemberment Insurance
• Spouse Optional Accidental Death & Dismemberment Insurance
• Child Optional Accidental Death & Dismemberment Insurance

Details to consider

• Do you have a spouse and/or dependants?
• Do you have other life insurance policies?
• What are your family’s financial needs?

The importance of designating a beneficiary

Life insurance payments are non-taxable when paid to one or more designated beneficiaries and only a named beneficiary can apply for the funeral advance.

If paid to an employee’s estate, the insurance becomes part of the proceeds of the estate and may become taxable.

In addition, the benefit payment is subject to probate (a court process to validate a will and grant an executor the authority to administer the estate), 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.

It’s highly recommended that you name one or more beneficiaries for your life insurance during your initial enrolment, and that you keep your beneficiary designation information up to date (for example: if you get married, divorced, or if you have children).

The Benefits Service Centre must receive the original Group Life Beneficiary Designation form (PDF, 174KB) before they can update your beneficiary. If they don't receive the original form, the beneficiary will default to your estate unless you have previously designated a beneficiary, which will then remain on file.

The original Group Life Beneficiary Designation form that has been submitted with the most current date will be considered the valid form on file.

Changes in insurance

You must meet the actively-at-work requirement to increase or add new insurance coverage. The only exception is if your coverage changes due to changes in earnings that take effect on a Short-Term Illness and Injury Plan (STIIP) or weekly indemnity.  

Any increase or addition to your coverage must be approved by Canada Life. They’ll decide based on the medical evidence you provide, called evidence of insurability. 

Converting to an individual plan

If your employment ends or you reach age 65, you can apply to convert to an individual life insurance plan. Refer to the When does coverage end? section for more information.

Employee Basic Life Insurance (to age 65)

Employee Basic Life Insurance is mandatory until you turn 65. Coverage begins as soon as you meet eligibility requirements.

Important information

For employees working past age 65

Employee Basic Life Insurance (and Long-Term Disability) will cease at the end of the month in which an employee turns 65.

Employees have the option to convert their group life insurance plan to an individual plan.

See When does coverage end? for more information and important application deadlines.

For employees who retire before age 65

Employee Basic Life Insurance will continue until the age of 65 provided that:

• While an employee, the retiree was covered under the Public Service group life insurance plan (Policy 6878)
• The retiree begins receiving a pension the month following termination of employment AND elects (on their pension application form) to continue life insurance coverage (the coverage amount is what it was on the day before they retire). Those under 65 will be provided with this option (see your pension package)

You are not eligible for this coverage if there has been a break in service from the end of employment to the commencement of your pension payment.

Initial enrolment

During initial enrolment, you can select any Employee Basic Life Insurance coverage option ($25,000, $100,000 or 3 times annual salary) without providing evidence of insurability. Thereafter, if you wish to increase your life insurance coverage, you'll be required to provide evidence of insurability for flexible benefits form to the carrier.

After initial enrolment, if you increase your Employee Basic Life Insurance during open enrolment or an eligible life event, when submitting your Evidence of Insurability form, please be sure to include the division number for public service employees covered under the Flexible Benefits Plan (Division 30). 

Applications must be approved before coverage can begin.

Plan options

You cannot waive Employee Basic Life Insurance.

Core

This is the minimum level of coverage available. It provides $25,000 of life insurance coverage.

Comprehensive

This is the fully funded level of coverage. It provides $100,000 of life insurance coverage.

Enhanced

This is the highest level of coverage under the Employee Basic Life Insurance plan.

It provides coverage of 3 times annual earnings, rounded up to the next higher $1,000.

The minimum is $100,000.

The amount of your Employee Basic Life Insurance will be adjusted automatically if there’s a change in your basic annual salary rate.

Your premium will also change to reflect the revised amount of insurance.

If you wish to purchase Employee Optional Life Insurance, you must select this option.

Limitations

There are no limitations or restrictions on employee basic life claims for eligible employees under age 65 or eligible retired employees under age 65, except for claims related to accidental dismemberment and loss of sight.

Other benefits included in the Employee Basic Life Insurance plan

Accidental Dismemberment & Loss of Sight

If you suffer one of the following losses as a result of an accident, you will receive 100% of the principal sum (which is the amount of insurance in the option you elect: $25,000, $100,000 or 3 times your annual earnings) for:

• Loss of both hands or both feet
• Loss of sight of both eyes*
• Loss of one hand and one foot
• Loss of one hand or one foot and sight of one eye*

If you suffer one of the following losses, you’ll receive 50% of the principal sum for:

• Loss of one hand or one foot
• Loss of sight of one eye*

*Loss of sight means total and irrecoverable loss beyond correction by surgical or other means.

If benefits are paid to you because of an accidental dismemberment or loss of sight benefit claim, and you die because of that injury, the payment to your beneficiary will be reduced by the benefit payment you received before your death.

A claim for accidental dismemberment or loss of sight should be made in writing through an AskMyHR (IDIR restricted) service request selecting the categories Myself (or) My Team/Organization > Benefits > Excluded Employee Plan Inquiries and Issues.

Forms and instructions will be forwarded for you and your physician to complete.

Advance payment for terminally ill employees

If you’re suffering from a terminal illness with a life expectancy of 24 months or less, you may be eligible to receive an advance payment of up to $50,000 or 50% of your Employee Basic Life Insurance, whichever is less. This payment is non-taxable.

Contact the BC Public Service Agency to make a claim and provide the following information:

• Full name
• Social insurance number
• Current address
• Telephone number
• Last day worked
• Work status

The remaining portion of your Employee Basic Life Insurance will be paid to your designated beneficiary upon your death. Interest payments will be charged against the advance payment.

Funeral advance

An advance of $10,000 may be expedited to the named beneficiary in the event of your death.

This does not apply if the estate or a minor has been designated as the beneficiary.

The balance of the Employee Basic Life Insurance benefit will be paid once the beneficiary has submitted the claim.

To apply for the funeral advance, the beneficiary should contact the BC Public Service Agency and provide the following information:

• Name of deceased person
• Date of birth of deceased person
• Date of death of deceased person
• Full name, address and phone number of beneficiaries

After confirming that the funeral advance is payable, the Benefits Service Centre will contact Canada Life and a cheque will be mailed directly to the beneficiary, usually within a few days of the request.

Optional life insurance plans

Additional life insurance is available to you if you want to supplement your Employee Basic Life Insurance and/or if you wish to insure any of your dependants. All Optional Life and Optional AD&D coverage for yourself or your spouse ends when the covered individual turns 65.

Employee Optional Life Insurance

You must have selected the Enhanced level of coverage of Employee Basic Life Insurance to select this optional coverage.

This optional plan provides employee life insurance in addition to employee basic life insurance.

You may select insurance in units of $25,000 up to a maximum of $1 million.

The beneficiary of this coverage is the same as designated for basic life insurance, unless otherwise specified.

Spouse Optional Life Insurance Benefit

This optional plan provides life insurance for your spouse.

You may select insurance in units of $25,000 up to a maximum of $500,000.

You are the beneficiary of the life insurance.

Child Optional Life Insurance Benefit

This optional plan provides life insurance for any/all dependent children that you choose to cover.

Evidence of insurability is not required, and you may select insurance in units of $5,000 up to a maximum of $20,000.

You're the beneficiary of the life insurance.

Initial enrolment

During initial enrolment, you can select up to $50,000 of Employee Optional and/or Spouse Optional Life Insurance coverage without providing evidence of insurability. Any amount over $50,000 during initial enrolment will require evidence of insurability.

After initial enrolment, if you wish to increase your or your spouse’s life insurance coverage, you’ll be required to provide an Evidence of Insurability form to the carrier.

When submitting your Evidence of Insurability form, include the division number for BC Public Service employees covered under the Flexible Benefits Plan (Division 30).

Applications must be approved before coverage can begin.

Waiver of premium benefit on optional life insurance

If you become disabled while insured, the insurance carrier will review whether you’re eligible for a premium waiver on the optional life insurance for yourself and your covered dependants throughout the benefit period. Waiver of premium will continue during the period that you're continuously disabled but will not continue beyond your 65th birthday.

Suicide limitation on optional insurance

Optional employee and optional spouse life insurance benefits are not paid if the insured person (you or your spouse) commits suicide within 2 years after optional life insurance takes effect or increases. The beneficiary will receive a refund of the premiums paid for that insurance.

Optional Family Funeral Benefit plan

This optional plan provides spousal coverage of $10,000 and coverage of $5,000 per dependent child. The beneficiary of this coverage is the employee. The premium is $2.05 per month (rate is subject to change), regardless of the number of dependants. 

Evidence of insurability is not required.

Optional Accidental Death & Dismemberment Insurance (AD&D)

AD&D Insurance is available to supplement your Employee Basic Life Insurance coverage and/or to cover any of your dependants due to accidental death of the loss of use of limbs, sight, speech or hearing. This benefit does not provide coverage due to illness. Coverage is provided 24 hours a day, 7 days a week.

Evidence of insurability is not required.

Three plans are available:

Employee Optional AD&D
You may select insurance in units of $25,000 up to a maximum of $500,000.

Spouse Optional AD&D
You may select insurance in units of $25,000 up to a maximum of $500,000.

Child Optional AD&D
You may select insurance in units of $10,000 up to a maximum of $250,000.

In the event of employee’s death, the beneficiary of this coverage is the same as designated for employee basic life insurance unless otherwise specified. 

The employee is the beneficiary of this coverage in the event of: 

• Spouse’s or child’s death 
• Eligible injury to employee 
• Eligible injury to spouse or child 

Important definitions regarding loss

Loss by dismemberment means:

• For hands and feet, complete severance through or above the wrist or ankle joints
• For arms and legs, complete severance through or above the elbow or knee joints
• For thumb and big toe, complete severance of one entire phalange
• For fingers and other toes, complete severance of 2 entire phalanges

Loss of sight, speech and hearing means total and irrecoverable loss beyond correction by surgical or other means.

Loss of use means total and irrecoverable loss of the ability to perform every action the arm, leg or hand was able to perform before the accident occurred, beyond correction by surgical or other means. Benefits will not be paid for loss of use of the same arm, leg or hand for which loss by dismemberment is paid.

Eligible injuries

AD&D insurance will pay a percentage of the insurance to you if you sustain certain injuries in an accident. Eligible injuries usually involve dismemberment (loss of a limb, toe, or finger) or permanent loss of use, such as paralysis or vision loss.

Benefits

The amount of AD&D Insurance you purchase is called the principal sum. For example, if you purchase 2 units of $25,000 for yourself, your principal sum is $50,000. If you purchase 3 units of $25,000 for your spouse, your spouse’s principal sum is $75,000.

Depending on the loss you, your spouse or your child suffers as a result of an accident, a percentage of the applicable principal sum is paid according to the table of losses below if any of the following occur within 365 days of the accident.

Surgical reattachment

50% of the dismemberment benefit is payable if a dismembered part is surgically reattached regardless of whether use is regained. The balance of the dismemberment benefit is paid if the reattachment fails and the reattached part is removed within one year after the reattachment is performed.

Other benefits

If benefits are payable under this plan for a covered accident, there may be other benefits paid to plan maximums in addition to loss of life, dismemberment, or loss of use benefits. 

• If death occurs 150 kilometres or more from home, up to $2,500 will be paid for preparation of the body and transportation to its burial place or crematory. This benefit is also available to your dependants under the family plan
• If your death is accidental, your spouse may be reimbursed for an occupational training program. The maximum amount payable is the lesser of:
  • 10% of the principal sum; and
  • $10,000
• If your death is accidental, your child or children may be reimbursed for tuition if they enrol as a full-time student at a post-secondary institution. Canada Life will pay the educational benefit each year for a maximum of 4 consecutive years upon receipt of proof of full-time enrolment if the child was enrolled as a full-time student at a post-secondary institution at the time of the accident, or if the child was enrolled as a full-time student at a secondary school at the time of the accident and enrols at a post-secondary institution within 365 days of the accident. The maximum amount payable for each year of full-time post-secondary school enrolment is the lesser of:
  • 5% of the principal sum; and
  • $5,000
• Up to $2,000 for transportation and lodging expenses to have one family member join the covered person if they’re hospitalized more than 150 kilometres from their home
• Fees for an employee or their spouse to enrol in an education program if a job change is required because of an accident
  • Must enrol at a post-secondary institution within 365 days after the accident
  • Maximum payable is $10,000
• Expenses to make the covered person’s house and vehicle wheelchair accessible
  • Expenses incurred must be within 365 days of the accident
  • Maximum amount payable for all home and vehicle modifications combined is $10,000

For more information on the limitations and specifications related to these additional benefits, please contact the BC Public Service Agency or submit an AskMyHR (IDIR restricted) service request. Use the categories Myself (or) My Team or Organization > Benefits > Excluded Employee Plan Inquiries and Issues.

Accidental Dismemberment & Loss of Sight coverage and Optional Accidental Death & Dismemberment coverage limitations

No benefits will be paid for loss resulting from or associated with the following:

• Suicide, regardless of state of mind
• Intentionally self-inflicted injury, regardless of state of mind
• Viral or bacterial infections, except pyogenic infections occurring through the injury for which loss is being claimed
• Disease or infirmity
• Medical or surgical treatment other than reattachment
• Service (including part-time or temporary service) in the armed forces of any country
• War, insurrection or voluntary participation in a riot
• Air travel, except as a passenger in a licensed aircraft flown by a pilot certified to fly the aircraft. No benefits will be paid where the aircraft is owned, leased or rented by the Province of B.C., or where the person who suffers the loss is acting as a crew member
• Participation in a criminal act or attempted criminal act

How to make a claim

This section provides you with the methods to make a life insurance claim.

To initiate a claim for any of the life insurance plans, you, your supervisor or your designated beneficiary can contact the BC Public Service Agency.

To submit an AskMyHR (IDIR restricted) service request, use the categories Myself (or) My Team or Organization > Benefits > Excluded Employee Plan Inquiries and Issues.

A representative will send claiming information and will be available to answer questions.