LIFE INSURANCE

 Basic Life Insurance

LAwell provides the following basic life insurance at no cost to employees:

• $10,000 coverage amount for full-time employees

• $5,000 coverage amount for half-time employees

Supplemental Life Insurance

Employees have the option to purchase supplemental life insurance using pre-tax dollars from their pay. You can purchase coverage amounts up to 5 times your annual base salary rounded up to the nearest $1,000.

The Personalized Benefit Statement you receive will show you your coverage cost.

Medical History Statement (MHS)
There are many situations when a MHS is required. View offer options on your Personalized Benefit Statement or in your Benefits Central Portal online account to see if your election will require you to complete a MHS. However, in general, current LAwell members choosing to increase their current coverage by more than one level or choosing coverage over the amount of $750,000 or three times your annual earnings will be required to complete the MHS.

Active Work Requirement to Enroll into Life Insurance Coverage
You must meet the “active at work” definitions of the Group Policy for your elected life insurance to take effect. If you cannot work because of sickness, injury, or pregnancy on the day before your life insurance takes effect, including any increases in coverage, that coverage will not become effective until the day after you complete one full day of active work as an eligible employee.

Reductions Based on Age
Life insurance coverage for you (basic and supplemental) is reduced based on your age. From age 65 to 69, coverage amounts will be reduced to 65%. At age 70, coverage amounts will be reduced to 35%. The reduction is effective on the date of your 65th or 70th birthday. Employees in certain MOUs may have additional basic life benefit reductions at age 70. Consult your MOU for details.

Active Work Requirement

You must meet the “active at work” definitions of the group policy for your elected life insurance to take effect. If you cannot work because of sickness, injury, or pregnancy on the day before your disability coverage (or any coverage increase) becomes effective, your coverage, including any increases, will not become effective until the day after you complete one full day of active work as an eligible employee.

Medical History Statement (MHS) Requirement

Some life insurance coverage levels available to you will require you and/or your dependent to complete a Medical History Statement (MHS). An MHS, available here, asks a series of questions regarding your current and past medical condition. Once received, Standard Insurance Company will review your statement and determine if any additional information or action is required of you or your dependent before an approval of coverage determination can be made.

You must complete and return the MHS before your submission deadline and it must be approved by Standard Insurance Company before your coverage can take effect. If a required MHS has not been provided by the deadline, any pending coverage will be removed from your benefits account and the City will send a confirmation statement of this change to you. If the MHS is submitted before your deadline, but Standard Insurance Company requires additional information/action before an approval determination can be made, your coverage will become effective on the date of approval. The City will not take payroll deductions for the coverage until the insurance company provides a date of approval.

What is the MHS submission deadline?
After your enrollment in a plan that requires MHS, you will receive a confirmation statement that provides you a deadline for submitting the MHS. The deadline is typically 60 days from the date of your election. However, you can complete the form online at any time. The MHS form is available here.

For your life coverage (Basic and Supplemental): You can name anyone as the beneficiary of your basic and supplemental life insurance. If you have had a recent change in your family status – such as marriage or divorce – you may need to update your beneficiary. The beneficiary you name for your life insurance benefit may be separate and different from any other beneficiary you name with the City for your other employee benefits, such as your LACERS pension, Deferred Compensation Plan account, etc. It is important to name a beneficiary so death benefits can be paid to the person of your choice if you were to die.

To name or update your beneficiary information, go to keepingLAwell.com. You can also call the Benefits Service Center at 833-4LA-WELL (833-452-9355).

For your dependent (Spouse/Domestic Partner and Child) life coverage, you will be the beneficiary.

Claims Process

To receive a life insurance benefit, your beneficiary must complete and submit a beneficiary statement with required documentation. If you have designated multiple beneficiaries, each beneficiary must complete and submit their own. 

The City and its life insurance provider, Standard Insurance Company, will not notify beneficiaries of any eligibility. It is the responsibility of the beneficiary to initiate the life insurance claim process. Make sure your beneficiary is informed of their designation as your beneficiary and the process to initiate a claim. View more information, including the Checklist For Surviving Family Members, at keepingLAwell.com or call the Employee Benefits Life Insurance Coordinator at 213-978-1655.

Accelerated Benefit

The Accelerated Benefit option can provide financial assistance if you become terminally ill and have a life expectancy of 12 months or less. In this case, you may have the right to receive during your lifetime a portion of your insurance as an Accelerated Benefit.

You must have at least $10,000 of insurance in effect to be eligible. You may elect up to 75% of your basic and supplemental insurance, to a maximum of $500,000. The minimum Accelerated Benefit is $5,000 or 10% of your insurance, whichever is greater. However, if coverage is scheduled to reduce in the next 24 months, the Accelerated Benefit is based on the reduced amount. The Accelerated Benefit will be paid in a lump sum. The remaining amount of life insurance will be reduced by an interest charge.

Funeral Planning Services

The Funeral Planning service option allows your beneficiary to designate a funeral home assignment, which allows the insurance company to pay the funeral home directly from your life insurance policy. Additional funeral planning services may be available. Please visit The Standard and follow these step-by-step instructions.

• Click on The Standard

• Select Forms & Documents

• Scroll down to click on “Life Services Toolkit” under Other Services

If your City employment ends, there are two ways you can take your life insurance with you — portability and conversion. Portability allows you to continue group coverage at group rates, whereas conversion allows you to continue your coverage as an individual policy. Different rules apply. Here is an overview: 

Portability 

For Your Life Insurance Coverage (Basic and Supplemental) 

You must be under age 80, able to perform at least one gainful occupation, and on the date your employment terminates, you must have been continuously insured under the Group Policy for 12 consecutive months. Portable coverage lets you choose group term life insurance up to the amount of your basic and supplemental life coverage combined — to a maximum of $1,000,000 — without a Medical History Statement Form. The minimum amount you may port is $10,000. 

For Your Dependent Life Coverage (Spouse/Domestic Partner and Child) 

If you choose portable coverage for yourself, you may also take any dependent coverage with you if your dependent(s) meet the following age requirements: 

• Your spouse/DP must meet the same age requirements listed above for your coverage. 

• Children must be under age 26. 

Conversion 

If your coverage ends or reduces for any reason except failure to pay the premium or payment of an Accelerated Benefit, you can convert your life insurance, or your dependent’s life insurance, to an individual policy without a Medical History Statement Form. Because group rates will no longer apply, this individual conversion policy will cost substantially more than coverage you have as a City employee through LAwell. Conversion is the only option available if you do not qualify for portability. 

What You Need to Do 

To select portable coverage or to convert coverage, you must complete and submit a form — within 60 days from the date your employment or dependent coverage ends. Forms are available here. For more information, call Employee Benefits at 213-978-1655.