University Group Term
Life Insurance Plans
University Plan • Optional Plan • Dependent Plan
FOr eligible University OF michigan FacUlty anD staFF
Benefits Information by Phone Contents
The HR/Payroll Service Center can answer your benefits
questions. Call 734-615-2000 or 866-647-7657 (toll free for Section 1: Life Insurance Plans
off campus long-distance calling within the U.S.). Service Plan Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Center Representatives are available from 8:00 a.m.- 5:00 Life Insurance Plan Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
p.m., Monday – Friday, to assist you. Have your UMID Faculty and Staff Member Monthly Rates
number available when you call. for the Optional Life Insurance Plan . . . . . . . . . . . . . . . . . . . . . . .4
What You Pay for Your Optional Plan Insurance . . . . . . . . . . . . . . . .5
Office Hours and Locations Your Coverage in Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
You can meet with a benefits consultant on a walk-in basis. When Changes Occur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
U-M Ann Arbor How Benefits Are Paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
HR Service Center
Wolverine Tower—Low Rise 250 (Ground Floor) Section 2: Dependent Life Insurance Plan
3003 South State Street Spouse or Other Qualified Adult . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Ann Arbor, MI 48109-1278 Dependent Children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
8:00 a.m. – 5:00 p.m., Monday – Friday Dependent Life Insurance Plan Options . . . . . . . . . . . . . . . . . . . . . .9
734-763-0363, fax Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Continuation of Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
U-M Flint Terminating Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
213 University Pavilion Section 3: Certificate of Coverage
303 East Kearsley Certificate of Group Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Flint, MI 48502-1950 Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
810-762-3150 Employee Group Term Life Insurance . . . . . . . . . . . . . . . . . . . . . . .10
8:00 a.m. – 5:00 p.m., Monday – Friday Mode of Settlement Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Conversion Privilege. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Incontestability of Life Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Beneficiary Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Resources Option to Accelerate Payment of Death Benefits . . . . . . . . . . . . . .11
Modification of the Group Life Coverage Provisions . . . . . . . . . . .12
HR/Payroll Service Center . . . . . . . . . . . . . . . . . . .734-615-2000 Assignments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Toll Free . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 866-647-7657
Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AskHR.umich.edu
Benefits Office Website . . . . . . . . . . . . . . . . . . benefits .umich .edu
Life Insurance Information . . . . . . . benefits.umich.edu/plans/life
Forms . . . . . . . . . . . . . . . . . . . . . benefits.umich.edu/forms/life.html
MetLife Website . . . . . . . . . . . . . . . .www .metlife .com/mybenefits the university in its sole discretion may modify, amend, or terminate the
For beneficiary designations benefits provided in this booklet with respect to any individual receiving
benefits, including active employees, retirees, and their dependents. although
Hyatt Legal Plans . . . . . . . . . . . . . . . . . . . . . . . . . . 800-821-6400 the university has elected to provide these benefits this year, no individual has
Provides simple will preparation services if you are enrolled in Optional Life or Retiree Life. a vested right to any of the benefits provided. nothing in these materials gives
Website . . . . . . . . . . . . . . . . . . . . . . . . . . www .legalplans .com any individual the right to continued benefits beyond the time the university
Web Password . . . . . . . . . . . . .Member only . . . . . . . . . . . . 2100010 modifies, amends, or terminates the benefit. anyone seeking or accepting
any of the benefits provided will be deemed to have accepted the terms of
. . . . . . . . . . . . . . . . . . . . . . . . . .Member and family . . . . . . 2110010
the benefits programs and the university’s right to modify, amend or terminate
Telephone Services for People who are Deaf,
Hard of Hearing, or have Speech Impairments
TTY/TDD phone service is available to you through the Michigan every effort has been made to ensure the accuracy of this book. however,
Relay Center. Call 800-649-3777 and ask the operator to connect if statements in this book differ from applicable contracts, certificates, and
you to the HR/Payroll Service Center at 734-615-2000 or 866-647- riders, then the terms of those documents will prevail. all benefits are
7657 (toll free). Service Center Representatives will be happy to subject to change.
Section 1: Life Insurance Plans
The University of Michigan offers three group term life insur- • The Optional Plan gives you the flexibility of setting your own
ance plans to eligible active faculty and staff: level of coverage. There is a $1 million maximum of coverage
• a university-paid plan of $30,000, called the University Life available. You must be enrolled in the University Plan to
Insurance Plan (University Plan), enroll in the Optional Plan. If you are a nonsmoker, you get a
discount on the Optional premium. A nonsmoker is defined
• an optional plan of $5,000, $50,000, or one to six times annual as a person who has not smoked for 12 months. If you do not
salary, called the Optional Life Insurance Plan (Optional indicate your nonsmoker status on the application, you will be
Plan), and defaulted to the smoker rate.
• a Dependent Life Insurance Plan (Dependent Plan). • Under the Optional Plan, the amount of coverage you choose
All plans are administered by MetLife. and its cost will increase when your salary increases if your
coverage is based on your salary. Your cost will increase simi-
The University and the Optional plans offer coverage for you
larly when you move into the next higher age bracket.
only. The Dependent Plan offers coverage for your spouse or
OQA and/or dependent children (see page 9). Retired faculty • If your salary increase results in your coverage increasing
and staff who were participating in the University or Optional above $500,000, your coverage will be capped at a flat $500,000
Life Insurance Plans on the date of their retirement will be until you furnish evidence of insurability that is satisfactory to
transferred to the Retiree Life Insurance Plan. MetLife.
Plan Highlights Who is eligible to participate in the plan?
• The University Plan of $30,000 is paid for by the university. Regular, nonbargained-for university faculty and staff members
There are no employee contributions. who:
• These term life plans have neither cash value nor provision • have at least a 50% appointment, and
for loans, which means you must be enrolled when you die
• have departmental funding for a minimum of
in order for your beneficiary to receive benefits.
four continuous months, and
• Enrollment is not automatic for the Optional Plan. You must
• GSRAs who have at least a 25% appointment and department
enroll to participate.
funding for a minimum of four continuos months.
• New hires or newly eligible staff members hired after
• Research Fellows who have more than a 0% appointment and
1/1/2001 will be enrolled automatically in the $30,000
university funding. Stipend money is not eligible.
Regular, bargained-for University staff members who are
• Both the University Plan and the Optional Plan have a “Living
Needs Benefit” option—or accelerated payment of death
benefit—which is an advance payment of life insurance • the Michigan Nurses Association (MNA);
proceeds when you are terminally ill and have a life expec- • the Police Officers Association of Michigan (POAM);
tancy of six months or less.
• the University of Michigan Skilled Trades (Trades);
• If you are enrolled in the Optional Plan or have Retiree Life
Insurance, you are eligible for will preparation services • the House Officers Association (HOA);
provided by attorneys who participate in the Hyatt Legal Plan • the International Union of Operating Engineers (IUOE);
Network. Hyatt Legal Plans is a wholly owned subsidiary of • the American Federation of State, County, and Municipal
MetLife and is the administrator of the Universities Group Employees (AFSCME);
• Graduate Employees Organization (GEO), or
• Lecturers Employee Organization (LEO).
Temporary hourly wage staff are not eligible.
liFe insUrance Plans 1
How do I enroll? Application Form .
New enrollment is not automatic for the Optional Plan. There The application form is available from any Benefits Office, the
are three ways you can enroll. Benefits Office website: benefits.umich.edu/forms. Complete
the form and return it to the HRRIS Benefits Transaction Team,
1 . As a new hire to the university . You have 30 days to enroll. either by U.S. mail, Campus Mail, or by fax to: 734-763-0363.
If you enroll as a new hire, you will not be required to provide
evidence of insurability (a health statement) as long as
Optional coverage is less than $500,000. Obviously, this is to Health Statement .
your advantage and will save you time and effort. If you enroll within 30 days of the date you become eligible
2 . As a newly eligible faculty or staff member . As you and choose less than $500,000 of coverage, you will not need to
become newly eligible for life insurance due to a promotion provide a satisfactory health statement as proof of insurability.
or job change that qualifies you for life insurance benefits, Therefore, it is to your advantage to enroll in life insurance at
you will receive an application form. If you enroll within the the time you become eligible, either when you are a new faculty
30 days allowed, you will not be required to provide evidence or staff member at the university or when you become newly
of insurability (a health statement) as long as coverage is eligible for this benefit (as the result of a change in appointment,
less than $500,000. etc.).
3 . At any time . After the 30 days provided for (1) and (2) above The type of statement you need depends on the amount of
expires, you can apply to enroll at any time you choose, but coverage you purchase, as shown in the chart below. You may
you will be required to furnish evidence of insurability that is enroll in the University Plan first and then add the Optional Plan
satisfactory to MetLife may also require a physical examina- at a later date.
Which Type of Health Statement Do You Need?
Both long-form and short-form health statements are available from any HR Service Center or the Benefits Office website:
If You: Long Form Short Form
Enroll in or increase Optional Plan coverage less than $500,0001 U
Elect Optional Plan coverage above $500,000 U
Request increased Optional Plan coverage above $500,000 U
Enroll in the University Plan after the 60-day deadline U
A long-form health statement may be required if you do not successfully pass the short form.
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Effective Date . You can choose different beneficiaries for each of the different
life insurance plans.
If you are newly eligible, your insurance will become effective on
your service date or first day you are newly eligible if you enroll If you enroll in the plan and you change the amount of your
within 30 days. If you are not actively at work on the day your coverage at a future date, the beneficiary you designate now will
insurance would otherwise become effective, you will become remain your beneficiary until you make a change. If you wish to
insured on the day you return to active work. If proof of insur- change your beneficiary, go to the MetLife website, www.metlife.
ability is required, your insurance will become effective on the com/mybenefits.
day the health statement is approved by MetLife, the Benefits
Office has been notified, and you are actively at work.
Is this booklet the same as a contract?
No, this booklet describes your Group Term Life Insurance plans,
Your Beneficiary . but it is not a contract of insurance. Likewise, possession of this
When you elect life insurance coverage for the first time, you booklet does not constitute coverage. The complete terms of the
must complete the beneficiary designation on the MetLife Group Term Life Insurance coverage are set forth in the Group
website, www.metlife.com/mybenefits. You may choose any Term Life Insurance policy issued to the University of Michigan
beneficiary you wish, such as a family member, a friend, a trust, by MetLife.
or an organization. You can name a single beneficiary or you
can name two or more joint beneficiaries to receive the insur-
ance payment. You may change your beneficiary at any time. If
you do not designate a beneficiary, or if none of the beneficiaries
you name survives you, death benefits will be paid to the first of
• your surviving spouse/OQA;
• surviving children in equal shares;
• surviving parents in equal shares;
• surviving siblings in equal shares; or
• your estate.
liFe insUrance Plans 3
Life Insurance Plan Benefits
University Life Insurance Plan Optional Life Insurance
If you are enrolled in the University Plan, $30,000 of group Faculty and Staff Member
term life insurance coverage is provided at no cost to you.
Monthly Rates Per $1,000
Optional Life Insurance Plan Age Standard Nonsmoker
Benefits for Active Faculty Discount
and Staff Members < 30 $0.025 $0.012
Optional Plan Coverage Options .
30 - 34 $0.027 $0.025
If you are enrolled in the University Plan and want addi-
35 - 39 $0.034 $0.031
tional coverage, these are your coverage options. You can
choose from nine different coverage options:* 40 - 44 $0.052 $0.043
• no coverage 45 - 49 $0.088 $0.076
• $5,000 (minimum) 50 - 54 $0.146 $0.125
• $50,000 55 - 59 $0.229 $0.195
• 1 times salary
60 - 64 $0.356 $0.323
• 2 times salary
65 - 69 $0.639 $0.539
• 3 times salary
• 4 times salary 70 & older $1.145 $0.746
• 5 times salary
• 6 times salary (to a maximum of $1 million).
* If the coverage option you elect results in coverage over
$500,000, your coverage will be capped at $500,000 until
you furnish evidence of insurability that is satisfactory to
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What You Pay for Your Optional Plan Insurance
The university pays the full amount of the University Plan. You Use the worksheet below to determine your monthly premiums
pay for your Optional Plan. for your Optional Plan. If you are paid monthly, your premiums
will be deducted from your monthly paycheck; if you are paid
The cost of your Optional Plan depends on the coverage you
bi-weekly, your premiums will be deducted from your first and
select, your age, your smoking status, and your salary. The
second paycheck of the month.
amount of coverage you choose and its cost will increase when
your salary increases if your coverage is based on your salary. Your premium will be deducted on an aftertax basis.
Your cost will increase similarly when you move into the next
higher age bracket.
Optional Life Insurance Premium Worksheet
1 . Box A .
From the Faculty and Staff Member Monthly Rates Per $1,000 chart on the previous page, find your age and smoker status.
This is your rate. Write the figure in Box A below.
2 . Box B .
If you wish basic coverage of $5,000 or $50,000, enter 5 or 50 in Box B below. If you select a salary-based option, to find the
level of coverage (1-6 times your salary), multiply your annual salary by 1-6. For example, $12,000 x 3 = $36,000. Drop the
last three zeros and write the figure in Box B below.
3 . Box C .
Multiply the rate, Box A, by the coverage level, Box B, and enter the result in Box C below.
A B C
Rate Coverage Your Monthly Cost
liFe insUrance Plans 5
Your Coverage in Retirement
What if I enter the phased retirement program? In any event, during retirement the amount of insurance will
decrease as your age increases until you reach age 66, at which
Your coverage amount will not change because you enter the time coverage at $2,000 becomes effective and will remain in
university’s Phased Retirement Program unless other factors effect for the rest of your life.
change such as age and salary. See page 7, “What if my salary
is reduced?” Under present policy, which is subject to change, the entire cost
of the continued life insurance protection during retirement is
How does retirement affect my life insurance paid by the university.
Amounts of Insurance .
When you retire, you will be covered under the university’s
Retiree Life Insurance Plan. Your amount of life insurance will The table below applies to faculty and staff members who were
be the lesser of: hired after October 1, 1983. Faculty and staff hired prior to
October 1, 1983, only need five (5) continuous years of service
• the amount for which you were insured on your date at age 60 and above. Your insurance coverage amount is based
of retirement from the university, and on your age as of January 1.
• the amount applicable to your age as of January 1 and your
Note: Retirees with a date of service on or after July 1, 1988, will
completed years of continuous service (find the age and years
pay the full cost of benefits up to the month they turn age 62.
of service that apply to you in the table below).
Amounts of Insurance
Your Age On and After Amount of
50 years or less $15,000
51 years but less than 52 years 15,000
52 years but less than 53 years 15,000
53 years but less than 54 years 15,000
54 years but less than 55 years 15,000
55 years but less than 56 years 15,000
56 years but less than 57 years 14,000
57 years but less than 58 years 13,000
58 years but less than 59 years 12,000
59 years but less than 60 years 11,000
60 years but less than 61 years 10,000
61 years but less than 62 years 8,000
62 years but less than 63 years 6,000
63 years but less than 64 years 5,000
64 years but less than 65 years 4,000
65 years but less than 66 years 3,000
66 years and over 2,000
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When Changes Occur
If I become ineligible to participate in the Consult the University of Michigan Standard Practice Guide
University Life Insurance Plan or Optional Life (SPG) for the most up-to-date rules regarding leaves (SPG
Insurance Plan, do I lose my life insurance? Sections 201.30-0 and 201.30-1) and layoffs (SPG Sections
201.72-0 and 201.72-1).
Your insurance will terminate if:
• you become ineligible for the insurance;
• you discontinue your contributions;
How will changes in salary or age affect my cost
for the Optional Life Insurance Plan?
• your employment terminates; or
If you selected a multiple of your salary for your Optional
• either the University or Optional Plans are terminated by coverage, the amount of coverage selected and its cost will
the university. increase automatically when your salary increases. Your cost
However, if your coverage terminates for any reason, your will increase similarly when you move into the next higher age
University Life and Optional Life insurance benefits will be paid bracket. See below, “What if my salary is reduced?”
in the event your death occurs during the next 31 days after one
of the events above or during the remainder of the period for
which you have already paid the premium—whichever occurs What if my salary is reduced?
later. If your coverage at the university has been in effect for at
least five years, you may convert to a MetLife individual policy. In the event of a reduction in base annual salary, your insurance
See “Conversion Privilege” on page 10. coverage and contributions will be reduced to reflect your actual
salary. However, if you should die within two years of your salary
reduction, your life insurance will be paid at the higher amount.
If you have questions about this provision, contact the HR/Payroll
What if I take a leave of absence or I am tempo-
Service Center at: 734-615-2000 or 866-647-7657 (toll free).
rarily laid off?
• If you are granted an official leave of absence by the univer-
sity, your insurance can be continued for the duration of the What if I terminate my employment at the
leave, provided you make arrangements with the Benefits University?
Office prior to the start of your leave to pay the premiums
during your leave. If you are enrolled in either life insurance plan and your employ-
ment terminates for any reason, your life insurance coverage will
• If you are temporarily laid off for any reason, your insurance cease 31 days from the last day of the month in which you leave
can be continued during the layoff for up to 12 months, the university. See “Conversion Privilege,” page 10.
provided you make arrangements prior to the layoff with the
Benefits Office for the payment of premiums. If you request
and qualify for “extended layoff,” coverage can be continued What happens if I become totally disabled?
an additional six months.
If you become disabled, you are in the university’s Long-Term
• If you choose not to continue coverage during a leave of
Disability Plan, and you are approved for benefits, your life insur-
absence or layoff, and you return to work at the University
ance will remain in force, paid for by the university.
with an eligible appointment, your coverage will be rein-
stated at the same level you were enrolled for prior to your
leave or layoff. You must contact the Benefits Office within
30 days of your return to work if you need to make allowable
changes to your coverage.
liFe insUrance Plans 7
How Benefits Are Paid
What happens to my life insurance when I die? Does the plan offer an accelerated payment of
death benefits or “Living Needs Benefit” option
If you die while your insurance is in force, regardless of how,
and how does it work?
when, or where death occurs, the full amount of your insurance
will be paid to your beneficiaries when MetLife receives written The accelerated payment of death benefit or “Living Needs
proof of your death. A certified copy of the death certificate is Benefit” option is an advance payment of life insurance proceeds
required. for terminally ill persons, and is available under this plan.
Under this option, a plan participant whose life expectancy
is six months or less may receive, in advance, up to 80% of
How will the insurance proceeds be paid? life insurance benefits that would otherwise be payable only at
death (with a maximum of $24,000 for the University Plan and
The beneficiary may choose a lump-sum payment. Beneficiaries $500,000 for the Optional Plan). A $10,000 policy, for example,
of active university employees can open an interest-bearing would pay a benefit of $8,000. Faculty and staff members can
checking account immediately when the claim is processed, choose to have the benefit paid out in one lump sum or three
in lieu of a lump-sum distribution. equal monthly payments. The money can be used at the discre-
tion of the insured. Benefits not paid in advance remain payable
to the named beneficiaries at the death of the insured.
When will payment be made to my beneficiary?
Payment to your beneficiary will be made within ten (10)
business days after all documentation is received by MetLife. How do I file a claim?
Whenever there is a claim, your family, beneficiary, or other Notify the HR/Payroll Service Center promptly when you have a
designated person should notify the HR/Payroll Service Center claim. Written proof of death (a certified death certificate) must
immediately. be furnished to MetLife before a claim can be paid. MetLife will
process all claim forms.
8 yOUr beneFits
Section 2: Dependent Life Insurance Plan
The group term Dependent Life Insurance Plan, also referred to Continuation of Coverage .
as the “Dependent Plan,” is available for your spouse or OQA and
any eligible children—even if you do not wish to insure yourself. If your dependent has been enrolled in the Dependent Life
Insurance plan for at least five years, you have the option to
convert life insurance for your dependent when coverage ends
Spouse or Other Qualified Adult .
• you cease to be in an eligible class;
Your spouse or OQA can enroll in the Dependent Plan at any
time. He or she will need to provide satisfactory evidence of • your employment ends;
insurability (health statement). Coverage will go into effect • the group policy ends; or
when (1) the Dependent Plan application is received in the
Benefits Office and (2) satisfactory evidence of insurability has • the dependent ceases ceases to qualify as an eligible depen-
been received and approved. dent.
See Conversion Privilege, page 10.
Dependent Children .
Terminating Coverage .
No health statement is required to enroll children in the
Dependent Plan. Children may be enrolled in the Dependent You can terminate dependent coverage at any time. To do so,
Plan at any time. complete a “Group Life Insurance Withdrawal Form” available
from any HR Service Center or the Benefits Office Web site:
Dependent Plan coverage for newborns will go into effect at age www.umich.edu/~benefits/forms.
15 days or when the Dependent Plan application is received,
whichever is later. Dependent Spouse/OQA Plan coverage terminates when the
faculty or staff member retires, terminates employment with
the University for any reason, or dies. Dependent Spouse Plan
Beneficiary . coverage will terminate the date the faculty or staff member’s
divorce is final.
When you enroll in the Dependent Plan, you do not need to desig-
nate a beneficiary. You are automatically the beneficiary. If you Coverage for your eligible dependent child or children ends at the
and your dependent die within a 24-hour period, both benefits end of the month in which the child turns age 26.
will be paid to the beneficiary of your life insurance policy or to You must notify the Benefits Office in writing when you no
your estate. longer have a child eligible for benefits.
Dependent Life Insurance Plan Options
You Can Choose Health Statement
Insurance For Your: In These Amounts Cost Per Month Needed
Spouse or OQA $10,000 $0.84 short form1
$25,000 $2.10 short form1
$50,000 $4.20 long form
Children2 $2,000/child $0.073 none
$5,000/child $0.173 none
A long form Health Statement may be required if you do not successfully pass the short form statement.
Coverage for all your eligible dependent children from age 15 days through the end of the month they turn age 26.
Composite rate covers all your eligible children.
liFe insUrance Plans 9
Section 3: Certificate of Coverage
Certificate of Group Coverage . Conversion Privilege .
This Certificate of Group Coverage certifies that subject to the If your or your dependent’s Group Life Insurance ends because
terms and conditions of the Group Policy, the insurance referred you terminate your employment or transfer out of an eligible
to herein is provided for certain faculty and staff members of class, you can convert all or part of it to an individual life insur-
The Regents of the University of Michigan, herein called the ance policy. To do so, contact the Benefits Office and make the
Policyholder. first premium payment within the next 31 days, or, if later, within
the period through which you have made contributions. No
evidence of insurability is required.
Benefits . You may obtain any type of individual policy that MetLife then
The MetLife benefits for which you are insured are described in customarily issues in an amount up to the amount you had at
this booklet in the sections preceding this Certificate of Group termination. The only exceptions are term insurance or a policy
Coverage. The benefits and all the provisions applicable to you that contains disability or other supplementary benefits. The
are described in the booklet and are effective only if you are policy will become effective when your coverage at U-M ends.
eligible for insurance, become insured, and remain insured in Premiums will be based on your age and class of risk at that time.
accordance with the provisions of the Group Policy.
You or your dependent may be able to convert to an individual
This certificate, which is merely evidence of insurance provided policy even if your Group Life Insurance ends because the Group
under the Group Policy, is furnished in accordance with, and Policy terminates (or because such insurance terminates for
subject in every respect to, the Group Policy, which alone consti- your class). You can convert, as described above, only if you
tutes the agreement under which payments are made. This were insured for the Group Life Insurance for at least five years.
certificate replaces any certificates previously issued to you with Your dependent must also have been enrolled for at least 5 years
respect to the group coverage described herein. to convert to an individual policy. The amount you can convert is
the amount for which you are enrolled when you terminate your
university employment minus any group life insurance for which
Employee Group Term Life Insurance . you become eligible during the conversion period, but not more
Upon receipt of written proof of your death, the amount of
Employee Group Term Life Insurance for which you are insured If you die within 31 days after your employment terminates
under the Group Policy shall be payable to the beneficiary desig- or you become ineligible, or, if later, you die within the period
nated by you in accordance with the terms of the Group Policy. through which you have made contributions, the amount of
Any part of such insurance for which no beneficiary is designated Group Life Insurance you were entitled to convert will be paid
or surviving at your death will be payable in accordance with the to your beneficiary whether or not you applied for conversion,
terms of the Group Policy. when MetLife receives due written proof of death (a certified
The individual policy will be in place of all Group Life Insurance
Mode of Settlement Provisions . benefits. You (or, after your death, your beneficiary under the
Your life insurance will be paid to your beneficiary in a lump individual policy) may, however, still establish rights under the
sum. However, other methods of payment may be arranged Extended Death Benefit if its requirements are satisfied. If this
with MetLife. Information about the available methods may be is done, those rights will be in exchange for all benefits under
obtained from MetLife. the individual policy. In that case, any premiums paid for the
individual policy will be refunded.
10 yOUr beneFits
Incontestability of Life Insurance . Option to Accelerate Payment of Death Benefits .
All statements made by an insured person with respect to the life Accelerated Payment of Death Benefits is an option which
insurance under this plan shall be deemed representations and provides early payment of life insurance proceeds when you
not warranties. With respect to each amount of life insurance are terminally ill or totally and permanently disabled with a life
for which a person is insured, no such statement shall be used expectancy of six months or less. It is not intended or designed
in any contest of such insurance unless a copy of the instrument to provide health, nursing home, or long-term care insurance.
containing the statement is or has been furnished to him/her or
When you elect this option, the total amount of Employee Term
to his/her beneficiary. No statement made by an insured person
Life Insurance otherwise payable on your death, including any
relating to his/her insurability for such insurance shall be used
amount under the extended death benefit, will be reduced by the
in contesting the validity of the insurance with respect to which
accelerated proceeds. Also, any amount you could otherwise have
the statement was made after such insurance has been in force
converted to an individual contract will be reduced by the accel-
prior to the contest for a period of two years during his/her life-
erated proceeds. In other words, this benefit is in lieu of the
time. Nor can such statement be used unless it is contained in a
benefits that would have been paid on your death with respect to
written instrument signed by him/her.
the accelerated proceeds.
You are totally and permanently disabled for the purposes of this
Beneficiary Provisions . option when you furnish proof, including a certification by a
doctor, that satisfies MetLife that your life expectancy is six (6)
These provisions apply to any coverage which pays a benefit on months or less.
account of your death. Any such benefit is payable to the benefi-
ciary you designate on a form satisfactory to MetLife. You may The terminal illness proceeds are equal to 80% of the amount of
change your beneficiary at any time without your present benefi- life insurance in force on your life on the date MetLife receives
ciary’s consent. To do this, go to the MetLife website, www. proof that you are totally and permanently disabled, but not more
metlife.com/mybenefits. The new designation will take effect on than $24,000 for the University Plan or $500,000 for the Optional
the date your change is completed. Plan. However, the accelerated proceeds may be reduced if,
within six (6) months after the date MetLife receives such proof,
If you designate more than one beneficiary but do not specify a reduction on account of age would have applied to the amount
their shares, they will share equally. If a beneficiary dies before of your Employee Term Life insurance. In that case, the amount
you, his interest will terminate and will be shared equally by any of terminal illness proceeds may not exceed the amount of such
remaining beneficiaries, unless you specify otherwise in your insurance after applying the reduction.
beneficiary designation. Any amount of insurance for which
there is no beneficiary at your death will be payable to the first of If you elect this option, MetLife will make the accelerated
the following: proceeds payable to you either in a lump sum or in three (3)
• your surviving spouse/OQA;
Your rights to be paid under this option are subject to the
• surviving children in equal shares;
• surviving parents in equal shares;
1. you must choose this option in writing in a form that satisfies
• surviving siblings in equal shares; or MetLife; and
• your estate. 2. your Employee Term Life Insurance must not be assigned.
Your beneficiary designation will be maintained by MetLife and
will not be contained or updated in this Certificate.
liFe insUrance Plans 11
3. Accelerated proceeds will be made available
to you on a voluntary basis only. Therefore:
(a) If you are required by law to use this option to meet
the claims of creditors, whether in bankruptcy or
otherwise, you are not eligible for this benefit.
(b) If you are required by a government agency to use
this option in order to apply for, receive, or maintain
a government benefit or entitlement, you are not
eligible for this benefit.
Modification of the Group Life Coverage
The meaning of “Form” for an individual life insurance contract
which appears in the Conversion Privilege of the Group Life
Coverage provisions is replaced by:
“Form: Any form of a life insurance contract that:
1. conforms to Title VII of the Civil Rights Act of 1964, as
amended, having no distinction based on sex; and
2. is one that MetLife usually issues at the age and amount
This does not include term insurance or a contract with disability
or supplementary benefits.
Irrevocable assignments to an individual or a trust are permitted
for the Optional Plan only.
12 yOUr beneFits
Published by Board of Regents of the University of Michigan:
Benefits Office Julia Donovan Darlow, Ann Arbor
University of Michigan Laurence B. Deitch, Bingham Farms
Wolverine Tower—Low Rise G405 Denise Ilitch, Bingham Farms
3003 South State Street Olivia P. Maynard, Goodrich
Ann Arbor, MI 48109-1278 Andrea Fischer Newman, Ann Arbor
Andrew C. Richner, Grosse Pointe Park
PHONE 734-615-2000 or S. Martin Taylor, Grosse Pointe Farms
866-647-7657 (toll free for off-campus Katherine E. White, Ann Arbor
long-distance calling within the U.S.) Mary Sue Coleman, ex officio
WEB benefits.umich.edu Nondiscrimination Policy Statement
AskHR.umich.edu The University of Michigan, as an equal opportunity/affirmative
action employer, complies with all applicable federal and state laws
regarding nondiscrimination and affirmative action. The University
of Michigan is committed to a policy of equal opportunity for all
April 2012 pdf persons and does not discriminate on the basis of race, color,
national origin, age, marital status, sex, sexual orientation, gender
The Benefits Office is a unit of identity, gender expression, disability, religion, height, weight, or
University Human Resources (UHR). veteran status in employment, educational programs and activities,
and admissions. Inquiries or complaints may be addressed to the
Laurita Thomas Senior Director for Institutional Equity, and Title IX/Section 504/
Associate Vice President for Human Resources ADA Coordinator, Office of Institutional Equity, 2072 Administrative
Services Building, Ann Arbor, Michigan 48109-1432, 734-763-0235,
Ted Makowiec TTY 734-647-1388. For other University of Michigan information
Senior Director for Benefits call 734-764-1817.
U-M Ann Arbor
Wolverine Tower—Low Rise G405
3003 South State Street
Ann Arbor, MI 48109-1278
Office of Human Resources
213 University Pavilion
303 East Kearsley
Flint, MI 48502-1950