The University of North Carolina (UNC) System is committed to periodically reviewing its benefit programs to make sure the UNC System offers best-in-class benefit options that provide financial security for employees and their dependents.
As a result of a recent review, the UNC System will consolidate several institution-level voluntary after-tax life insurance plans offered through MetLife into one Voluntary Life Insurance and Accidental Death & Dismemberment (AD&D) Plan provided by MetLife. This consolidation will provide current participants with enhanced coverage and benefit options, all at a lower cost.
Please see below how these changes, which will take place in two phases, may affect you.
Phase One: Sept. 1, 2020
As an employee currently enrolled in voluntary life insurance at UNC Chapel Hill, you will be automatically enrolled in the new plan offered through MetLife at your current coverage level beginning Sept. 1, 2020.
The benefits available under this new plan will be the same as the current plan, but it will also include AD&D coverage. You will receive the same amount of AD&D coverage as you currently have under the Voluntary Life Insurance Plan. For example, if you currently have $50,000 in voluntary life insurance coverage, you now will also have $50,000 in AD&D coverage.
Also, beginning Sept. 1, 2020, most employees will see a reduced premium rate for the new Voluntary Life Insurance. You will see one rate for enrollment based on your age band; this rate includes both life insurance and AD&D benefits. In most age-bands, the combined rate will be less than the current life insurance-only rate. For spouse coverage, you will now see age-banded rates, based on your age, as opposed to a flat rate regardless of age. View the new rates.
Phase Two: Jan. 1, 2021
Effective Jan. 1, 2021, you will see additional changes to the coverage offered under the new Voluntary Life Insurance and AD&D Plan. The new plan will feature a voluntary retiree option. This option will allow you to select a retirement life policy in the amount of $25,000 without submitting Evidence of Insurability. You may also select additional coverage levels; however, you will need to provide Evidence of Insurability for any amount in excess of $25,000.
Other plan enhancements include:
- New coverage amounts from one to eight times your salary, up to $1 million, whichever is less
- Dependent child coverage available from birth to age 26 (if your dependent is unmarried and supported by you)
- There is no reduction in your benefit if you are age 65 or older
- You can increase your current spouse coverage amount by one multiple, up to $50,000, without providing Evidence of Insurability during Annual Open Enrollment
- Spouse coverage is portable
Review a chart comparing the coverage provided under the old plan and the new plan. Plan provisions highlighted in yellow indicate that this is a new benefit. Plan provisions highlighted in light blue show plan improvements.
Did You Know?
Accidental Death & Dismemberment (AD&D) insurance pays a benefit if you die or are seriously injured as the result of an accident. The coverage is effective 24 hours a day, 365 days a year, and includes accidents on or off the job. AD&D coverage is now included under the new Voluntary Life Insurance and AD&D Plan.
What you need to do?
You do not need to do anything at this time. The voluntary life insurance coverage amounts in place for you and your dependents, as well as your beneficiaries, will stay the same under the new Voluntary Life Insurance and AD&D Plan.
This year’s Open Enrollment will occur October 15 – October 30, 2020. During Open Enrollment, you can make changes to your benefits coverage. We recommend you carefully review your life and AD&D options to determine if you need to change or cancel other coverage you may have based on the coverage now provided under the new Voluntary Life Insurance and AD&D Plan.