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NC Flex Group Term Life

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Life insurance is designed to provide financial security in the event of death. "Group-Term" simply means the life insurance is offered to a group of employees and that unless an employee elects to continue the coverage, it terminates when employment ends. Pre-tax life insurance is available to eligible employees through the Office of State Human Resources NCFlex benefits program and because it's offered to a large group of employees, premiums are very economical. Coverage is provided by ING, and pays a benefit in the event of a covered participant's death.

Who's Eligible?

Permanent employees who work at least 20 hours or more per week for 9 or more months per year are eligible to enroll in all NCFlex benefit plans including Group Term Life Insurance. Coverage is only available for eligible employees and those in need of dependent life insurance may want to consider MetLife in addition to this plan.

How Much Coverage Can I Purchase?

Coverage begins at $20,000 and increases in $10,000 increments, up to a maximum coverage amount of $500,000 or 5 times the employee's base annual salary, whichever is less. The guaranteed issue amount is $100,000. Amounts in excess of $100,000 are subject to evidence of insurability approval. Newly eligible employees must enroll within 30 days of the eligibility date to be insured at the guaranteed issue amount.

Do I Have To Complete A Health Statement?

Provided an employee enrolls within the first 30 days of eligibility, coverage up to $100,000 is guaranteed. Life insurance in excess of the guaranteed issue amount or for those considered late enrollees, evidence of insurability (or statement of health) approval is required before coverage is granted.

How Is The Monthly Premium Calculated?

Monthly premiums are based on the amount of coverage and the employee's age. The following chart represents the monthly premium amount per $1000 of coverage. Because of the pre-tax nature of the premiums,imputed income rules apply.

Premium Calculation for NCFlex Term Life
Employee Age Rate Per $1,000 of Coverage
Under 25 $0.049
25-29 $0.059
30-34 $0.079
35-39 $0.089
40-44 $0.139
45-49 $0.198
50-54 $0.337
55-59 $0.564
60-64 $0.84
65-69 $1.73
70+ $2.52

If employed by the state of NC and enrolled in this plan, the benefit amount is reduced upon attainment of age 70.

To calculate the monthly premium, multiply the amount of coverage by the age-rate factor and divide the result by 1000.

How Do I Enroll?

New Employee

New employees will receive on-line enrollment instructions during New Employee Orientation. On-line enrollment must occur within 30 days of the hire date; otherwise, the next available date to enroll is either during Annual Enrollment or within 30 days of a qualifying event. Coverage in excess of the guaranteed issue amount requires evidence of insurability. Complete the NC State University Term Life Evidence of Insurability Form on-line and click the Submit and Print button at the end of the form.

Qualifying Event

Employees who experience a qualifying event (birth, marriage, change in employment status, etc) must contact the Benefits Office within 30 days of the event date to receive instructions for making changes NCFlex benefits. In some cases, evidence of insurability may be required.

Annual Enrollment

Employees who do not choose coverage when first eligible, or during a qualifying event may enroll during Annual Enrollment, typically held in the autumn with an effective date of January 1. Evidence of insurability approval is required for all coverage amounts.

Beneficiary Designation

An employee should designate his/her beneficiary upon enrollment, and may change the designation at any time, by going online to NCFlex.

When Is Coverage Effective?

Life insurance becomes effective the first of the month following the hire date. If coverage in excess of the guaranteed issue amount is applied for, the excess coverage becomes effective the first of the month following receipt of approval.

Coverage changes resulting from a qualifying event become effective the first of the month following the date the request is submitted. Changes are permitted within 30 days of the qualifying event date. For those who enroll during Annual Enrollment, coverage becomes effective January 1 or the first of the month following evidence of insurability approval.

When Can I Make Changes?

Changes to Term Life Insurance can be made during Annual Enrollment typically held each autumn, for a January 1 effective date. Employees who experience a qualifying event may make coverage changes within 30 days of the event date.

Are There Other Benefits or Exclusions?

Other benefits include an accelerated death benefit and a disability waiver of premium. For more information about additional benefits and exclusions, visit the NCFlex web site.

What If I Leave Employment?

Portability

Employees who leave employment or retire prior to age 70 are given the option to continue coverage under the NCFlex Group Term Life Insurance policy. A small billing fee will be applied to the full cost of the coverage.

Conversion

As an alternative, an individual who separates employment may elect to convert their life insurance coverage to an individual whole life policy. The whole life policy has a cash value and premiums do not increase as age increases. Rates for whole life insurance are generally more expensive than portable life insurance rates.

Who is my Benefits Consultant?