In addition to the Basic Life Insurance provided under ONE-T, you can purchase Optional Life insurance for yourself, your spouse and/or your child(ren). (Please refer to your Benefits Plan Design Summary for details.) If you previously had Member or Spousal Optional Life under your Board plan and purchased this coverage when we moved to the consolidated plan under ONE-T, you may have noticed a change in your premiums. This is due to the way the premiums are calculated.
Some prior school board plans were using a “blended rate” to determine the premiums for Member and Spousal Optional Life – meaning risk was spread equally across all those who purchased the coverage, and all members paid the same rate.
Your plan under ONE-T uses a rate table, meaning individual premiums will vary based on age, gender and smoking status. This is a common approach used by the vast majority of benefits plans today, to make sure individual premiums accurately reflect the level of risk being taken. As a result, you may find that your Optional Life premiums have increased or decreased. For example, if you’re a younger member and a non-smoker, you will pay a lower premium than an older member who smokes.
You can end your Optional Life insurance at any time by contacting Cowan. However, Cowan can only process the termination as of the 1st of the following month; it can’t be done retroactively. For example, if it is July 15, 2020, and you contact Cowan on that date, then they will ensure the termination of your Optional Life insurance is processed for August 1, 2020.
If you have further questions on any of the optional benefits available to you, please refer to the fact sheets on the Resources page.