Automatic coverage starts when you're hired
All employees in a regular position with an assignment of 0.75 FTE or greater automatically receive life insurance coverage when they're hired — no action required. You'll receive coverage, no health questions asked, because this is offered as guaranteed issue.
Basic term life insurance coverage at no cost to you
Because this is term life insurance, the benefits will be available to you only while you're employed with the University of Kentucky.
Your coverage amount depends on your hire date:
- Hired on or after July 1, 2017? You receive coverage in the amount of to 50 percent of your salary.
- Hired before July 1, 2017?, You receive coverage in the amount of one times your salary.
Tax note: If your salary is more than $50,000, you will pay tax on the premiums UK pays toward the cost of any amount higher than $50,000. You may lower your coverage level to $50,000 to avoid any additional taxes by adjusting the amount in myUK.
Administered by Aetna who provides you additional benefits
Aetna is the administrator for our life insurance plans. As part of their life insurance coverage, Aetna provides additional benefits. If you have the automatic basic coverage provided by UK, you also have these benefits:
- Guidance from financial advisers
- Legal services, including living and basic wills, health care directives, and power of attorney
- Emotional support services, such as grief counseling
- Funeral planning services
- Discounts on wellness products and services, including gym memberships, fitness and nutrition products, hearing aids, and others
Every year during open enrollment, you could choose to add more life insurance. There are two types of additional life insurance: term and universal.
The need for life insurance varies greatly depending on your age, number of dependents, their ages and your financial situation. These questions may help you decide how much additional life insurance to purchase:
- How much will my funeral and burial expenses be?
- How much would my family need to pay for outstanding debt?
- How many years of my income do I need to replace?
- How much annual income will my survivors need?
- Do I have children who may go to college?
- Are there any one-time expenses I want to fund (wedding, home repairs, etc.)?
- How much money do I have available in investments outside of retirement accounts?
Term life insurance through Aetna
Term life insurance is the same type of life insurance you get automatically when you're hired. You'll only receive benefits from this life insurance while you're employed with the University of Kentucky. You may purchase optional term life insurance, up to eight times your annual salary, for yourself and your family.
Universal life insurance through The MPM Group
If you want permanent life insurance that stays with you if you retire or change employers, consider universal life insurance. During open enrollment 2020-21, there is a special offer for guaranteed issue universal life insurance, which means you'll be approved for coverage regardless of health conditions.
Cost of optional term life insurance through Aetna
You choose the amount of additional life insurance for you and your family, up to eight times your annual salary.
|Your age||Monthly cost per $1,000 of coverage|
|Up to age 34||8 cents|
Filing a life insurance claim with Aetna
Call Aetna as soon as possible at 1-800-523-5065, Monday through Friday from 8 a.m. to 7 p.m. EST. Aetna will determine what benefits may be available. You might also need these documents:
- A funeral home or cemetery assignment – This is a form most funeral homes and cemeteries have that allows us to pay them directly. It must be signed by a beneficiary who is not a minor.
- Death certificate – Get a copy of the certified documents listing the cause and manner of death.
- Police, coroner, autopsy, and laboratory reports, newspaper articles, and medical records – You might need these for an accident-related death.
If the beneficiary is a minor, you must present the minor’s birth certificate and/or court orders pertaining to that minor as defined by your state law.