Human Resources

Employee Basic and Voluntary Life Insurance

 

 

Retiree and Deferred Retiree Life Insurance

 

 

 

ACTIVE EMPLOYEES LIFE INSURANCE BENEFITS

 

Basic Life Insurance Coverage
If you regularly work 30 or more hours per week and meet eligibility requirements, you are covered for group term life insurance at one times your annual base salary (rounded to the nearest $1,000). The minimum Life Insurance benefit is $16,000.  Your enrolled spouse is covered for $2,000, and each of your enrolled eligible dependents are covered for $1,000. Stillborn babies are covered for $1,000. The city of Houston pays 100 percent of the premium for your basic life insurance coverage. Dependent children are covered up to age 26 or over age 26, if they are physically or mentally disabled, unmarried, and covered under the Policy before age 26. Dependents must be added in order to be covered.


The cost of basic life insurance that exceeds $50,000 is taxed as imputed income.

                                                           


 

Voluntary Life Insurance Coverage
You may apply for a life-insurance benefit of one, two, three, or four times your annual salary at any time.
When you are first employed by the city of Houston, you may elect up to three times your salary and cover your dependents for the corresponding amount(s) without submitting evidence of insurability. If you request four times your salary, you will be required to supply evidence of insurability for your self and any dependent for whom you are applying for coverage. 


After your initial employment date, if you wish to enroll for coverage or increase your coverage, you will be required to supply evidence of insurability for your self and any dependent for whom you are applying for coverage. The life insurance company reserves the right to approve or deny coverage, and coverage will not become effective until the life insurance company issues an approval for each applicant.


Your spouse may be covered for 50 percent of your coverage, not to exceed $50,000. Your eligible children may be covered for 50 percent of your coverage not to exceed $10,000 per child. Stillborn babies are covered for 50 percent of your coverage, up to $10,000. Dependent children are covered up to age 26 or over age 26, if they are physically or mentally disabled, unmarried, and covered under the Policy before age 26. Dependents must be added in order to be covered.


Premiums for this coverage are based on your age, salary and coverage option. You will pay the total cost of your coverage and any enrolled dependent’s coverage. Only one dependent child premium is charged for coverage of one or more than one child. However, you must enroll each child. Total employee basic and voluntary life insurance coverage may not exceed $1,000,000.

 
Click here for more information on Basic and Voluntary Life Insurance

 


 

Voluntary Life Insurance Rates

 

Age

Employee
Rate per $1000

Spouse
Rate per $1000

Dependent Children Rate per $1000

0-29

$ 0.095

$0.095

$0.24

30-34

$0.114

$0.114

$0.30

35-39

$0.152

$0.152

$0.30

40-44

$0.200

$0.200

$0.30

45-49

$0.304

$0.304

$0.26

50-54

$0.485

$0.485

$0.20

55-59

$0.798

$0.798

$0.14

60-64

$1.093

$1.093

$0.06

65-69

$1.710

$1.710

$0.06

70-74

$2.974

$2.974

$0.06

75-79

$4.380

$4.380

$0.06

80-84

$5.786

$5.786

 $0.06

85 or over

$8.731

$8.731

 $0.06

 


 

 

How to calculate your biweekly premium for Voluntary Life

 

Description: Images
NOTE: No person may be insured under the policy as both an employee and a dependent.
No person may be insured under the policy as both an employee and a retiree.
Life insurance is rounded to the nearest $1,000 with $500 being rounded up to the next $1,000.

 


 

Designating Your Beneficiaries
Your beneficiary is the person or persons designated by you, in writing, on the appropriate beneficiary form(s) online. You may designate whomever you wish as beneficiaries. Careful consideration should be given to beneficiary designations to ensure that any proceeds will be paid to the person(s) you desire. Beneficiaries may be changed at any time.  It is wise to review your beneficiary designations whenever you have a life-changing event such as marriage, divorce or the birth of a child. A life-insurance benefit will not be paid to an ex-spouse unless you designated your ex-spouse as your beneficiary after the divorce.


You are the beneficiary for all life-insurance coverage on your dependents.

 


 

Accelerated Death Benefit
Under both the basic and the voluntary life plans, accelerated death benefits are available for employees who are diagnosed with an illness that is expected to result in death within 12 months.  Application for this benefit must be made while covered as an active employee. The accelerated death benefit provision applies only to the employee. If approved, the employee may receive a benefit of 75 percent of the total amount of his/her coverage under these group plans. The minimum benefit is $5,000 or 10% of your Basic and Supplemental Life coverage, whichever is greater; the maximum benefit is $500,000. Receipt of accelerated death benefits can help an employee and his or her family manage expenses.


The Accelerated Death Benefit payable under this provision could be taxable and may affect other governmental benefits or entitlements.


 

Waiver of Premium
Employees covered under the life insurance plan who are permanently and totally disabled may apply to have their life insurance premiums waived. If approved, the disabled employee will continue to be covered at no cost until the disability ends, the death of the employee, retirement, or reaching 65, whichever occurs first.


 

Accidental Occupational Death Benefit
The Benefit is an amount equal to the Basic Term Life Insurance in force and will be paid if:

  • Death is caused by or resulting from an injury sustained during working hours as an Active Employee or
  • Death resulting from any disease or infection which arises out of and in the scope of employment.

 


 

Conversion of Life Insurance upon Termination
If life-insurance coverage ends because you are no longer a city employee, or because a dependent lost eligibility, you may request a conversion policy for yourself and/or any covered dependents.
A conversion policy is issued without evidence of insurability. The amount of that policy will not be more than the amount of coverage that was terminated. You or your dependent must apply for a conversion policy within 31 days after the end of active coverage. If your or a dependent's death occurs within the 31-day conversion period, the benefit would be paid as though a conversion had been effected. If your death occurs before you designate a new beneficiary, the benefit will be paid to your beneficiary of record at the time employment ended.

 


                


RETIREE AND DEFERRED RETIREE LIFE INSURANCE BENEFITS

Retired on or after October 1, 2013 - All retirees who elect Life Insurance coverage on or after October 1, 2013 receives a benefit amount of $10,000 for $10.30 per month. 


Retired prior to October 1, 2013 – All retirees who elected Life Insurance coverage before October 1, 2013 received a benefit amount of $5,000 for $.25 per month.  This option is closed. 

 

Click here for more information

 

Top