Professional & Managerial Staff (1-5): Group Life Insurance

Plan Administrator: The Great-West Life Assurance Company

Basic Life Insurance

Enrolment in the Life Insurance Plan is mandatory within 60 days of being hired at the University of Toronto provided your appointment is 25 per cent or more.

Our group life insurance is term insurance. The primary purpose of this insurance is to provide support for your survivors in the event of your death during your prime income-earning years. This policy has no cash surrender value and you cannot take a loan against it.

Basic coverage, which is provided at no cost to you, is equal to one (1) times your annual salary to a maximum of $125,000. The premium, which is paid by the University, is a taxable benefit each year.

Optional Life Insurance

Within 60 days of your date of hire or eligibility, you may also purchase additional insurance. The University will subsidize one-third of the total premium cost of this coverage.

Beyond the 60-day period, you must complete a form – entitled ‘Statement of Health for Group Insurance’ – in order to receive additional coverage. You may pick up a copy of the Statement of Health for Group Insurance from your Human Resources Office. Within 60 days of a change in marital status or the birth or adoption of a child, however, you may request this coverage without completing the health form.

Effective Date

Coverage is effective from the date you are hired. Within 60 days of being hired, your additional optional coverage goes into effect upon the date you complete the Benefits Application Form. Beyond 60 days, your coverage will go into effect once you complete the Statement of Health for Group Insurance and you receive approval from the insurance carrier.

Your Benefit Options

In addition to your basic coverage, you may choose one of the following life insurance options:

  • Additional lump-sum payment equal to one-times your annual salary (up to a maximum insurable salary of $125,000);
  • Additional lump-sum payment equal to two-times your annual salary (up to a maximum insurable salary of $125,000);
  • Additional lump-sum payment equal to three-times your annual salary (up to a maximum insurable salary of $125,000);
  • Survivor Income Benefit Provision to a maximum insurable salary of $65,000; and,
  • Survivor Income Benefit Provision (to a maximum salary of $65,000) plus an additional lump-sum amount equal to one times your annual salary to a maximum of $125,000.

The Survivor Income Benefit Provision is:

  • 30 per cent of your annual salary (to a maximum salary of $65,000) paid in monthly installments to your spouse until his or her death or remarriage (guaranteed for 10 years);
  • 10 per cent of your annual salary (to a maximum salary of $65,000) paid in monthly installments to each child (maximum of two children until age 21) in your care and custody, or in the care and custody of your spouse, at the time of your death. In the case of more than two children, the payment is made to the two youngest children.

Each year after your death, the Survivor Income Benefit will be increased by a cost-of-living adjustment determined by the University.

If You Become Disabled

If you receive long-term disability (LTD) benefits, your group life insurance coverage (both the basic and optional) will remain in effect, at no cost to you, until:

  • You return to active employment;
  • Reach your Normal Retirement Date (NRD), defined as June 30 immediately following or coincident with your 65th birthday; or
  • Death.

Your group life insurance coverage is calculated on your regular annual earnings immediately prior to the date you started to receive LTD payments for the first twelve (12) months, and it is adjusted annually by the across-the-board increase to a maximum of 7 per cent. (If you do not participate in the LTD plan, your group life insurance coverage is based on your regular annual earnings immediately prior to the date you would have received LTD.)

Leave of Absence

During a paid Leave of Absence, you will continue to have regular monthly benefit contributions deducted from your salary if you receive 25% or more of your regular salary.

If you take an unpaid leave of absence, you may make alternative arrangements with Payroll to continue your coverage in the plan. To continue coverage during an unpaid leave of absence, you will pay both the University’s contribution and your own.

Termination of Coverage

Your optional life insurance coverage ends at your NRD, even if you remain employed. Your basic life coverage ends November 30 in the year you turn 71.

Termination of Employment

If your termination from the University takes place before your NRD, your coverage will continue for 31 days. During this period, you may convert all or part of your coverage to a regular whole life policy or endowment policy offered by the Great-West Life Assurance Company.

To convert a personal policy, contact Great-West Life within 31 days of your termination:

Deacon Kalata
General Inquiries: 416.362.3080
EMAIL: info@deacon-kalata.com

Conversion Consultant
Matthew Low extension 232

Address:
81 Wynford Drive, Suite 704
North York, Ontario
M3C 3S2

The type of policy, your age and other criteria set by the insurer will determine the rate you pay for a converted policy. No medical examination will be required.

If you die within 31 days of leaving the University of Toronto, but before the policy conversion, the plan will provide coverage as if you were an active staff member.

If Your Appointment Drops Below 25 per cent

If your appointment with the University is reduced to less than 25 per cent of full-time, you may convert your term life insurance coverage to a regular whole life or endowment policy. In these cases, you may convert your policy as if you terminated your employment with the University.

When You Retire

Your coverage will continue for 31 days after you retire from the University (on or after your normal retirement date). During this time, you may convert your coverage to a regular whole life or endowment policy by notifying the Great-West Life Assurance Company in writing. Your policy maximum is the lesser of:

  • an amount equal to your regular annual salary; or,
  • $15,000.

Family Composition Change

Under the following circumstances, after the 60-day qualifying period has passed, you may elect optional coverage without providing a medical certificate:

  • You were single at the time you joined the plan and later married or entered into a common-law relationship;
  • You were single and later acquired dependents recognized by the Income Tax Act; and,
  • You were married and became widowed, divorced or legally separated and still have a dependent as recognized by the Income Tax Act.

In these instances, you must elect the optional coverage within sixty (60) days of your change in status. Beyond that time, you will be required to provide satisfactory proof of insurability. Please contact your divisional Human Resources Department to set up an appointment.

This summary outlines the main features of the University of Toronto Group Life Insurance and Survivor Income plan. Should any questions arise, the legal plan documents will govern at all times. Please direct your questions about eligibility or enrolment to your Divisional Human Resources Office.