Group Universal Life Insurance

Group Universal Life Insurance  

Overview

What would happen to your family if you were no longer there to provide for them? Do you have enough life insurance for them to keep their home, pay all the monthly bills, afford college for your children, and other future expenses?

 

With Group Universal Life Insurance you can replace the worrying about your family’s financial security. Group Universal Life Insurance allows you to create a "safety net" for your family and help provide the resources for them to carry on. Features of Group Universal Life Insurance include:
 

  • Tax-deferred savings. A cash fund option that offers tax-deferred savings and a guaranteed minimum interest rate of 3%.1
  • Loans. You can call on your plan for loans if you build up enough cash value.
  • Easy enrollment. Apply within 60 days of your eligibility date and you may not have to answer medical questions or provide evidence of insurability.
  • Guaranteed benefit opportunities available. You can receive up to 2 times your annual base pay (not to exceed $600,000). You may also elect up to $10,000 in coverage for your spouse/domestic partner and for each of your eligible children, without providing evidence of good health.2
  • Generous coverage amounts available. You can enroll in coverage from 1 to 5 times your annual base pay rounded to the next higher $10,000 not to exceed $3,000,000. You can enroll your spouse/domestic partner in any amount between $10,000 and $250,000 in increments of $10,000 and your children in the following benefit amounts: $5,000 and $10,000. Evidence of insurability may be required.
Enrollment

Find coverage that's right for you and your loved ones!
Contact Us

Address
Mercer Voluntary Benefits
P.O. Box 9122
Des Moines, IA 50306-9122
Phone
1-800-652-9512
Hours
M-F 8a-5p CT
Email
employerbenefitsinquiries.service@mercer.com

FAQs

Answers about the plan, including eligibility, options, enrollment, customer service and more.

  • Who needs life insurance?

    Everyone needs life insurance.
    Contrary to popular belief, life insurance isn't just for parents. You need life insurance if anyone is financially dependent on you.


    You've recently graduated from college.
    You may have significant student loan obligations. If something were to happen to you, your loved ones would most likely be forced to shoulder that debt.


    You're the parent of small children.
    You want to make sure they'll be able to keep the same lifestyle and attend college—even if you're not there to see it happen.


    Your grown children are on their own.
    But your children may rely on you for support and help around the house. If you weren't there for them, your children would need extra money to pay someone to take care of things you've been managing for them.


    Your spouse/domestic partner may be depending on your income for retirement.
    But you're not sure your retirement savings is enough to keep up with a rising cost of living if your paycheck stopped. Life insurance can be a smart way to fill the gap.


    Like many families, you rely on two incomes to make ends meet.
    You'll need life insurance on both you and your spouse/domestic partner. Even if your spouse/domestic partner stays at home, you should consider life insurance on your spouse/domestic partner to cover the cost of hiring someone to take care of the things your spouse/domestic partner generally handles.


    You want to be sure your children can protect their futures, too.
    Most children's life insurance coverage contains an innovative feature that allows them to convert their term life protection to a permanent life insurance plan at a higher premium when they become adults. This ensures that your children can protect their own families—no matter what health problems they may develop.

  • Who is the provider?

    With 150 years of experience, MetLife is a leading innovator and a recognized leader in protection planning and retirement & savings solutions.

  • Who is eligible?

    You can enroll if you:

    • Are a regular full-time active employee of Reynolds American Inc.
    • Are actively at work on both the date the enrollment form is signed and the effective date of coverage.
    • Meet the eligibility requirements on the enrollment form.
    • Are a U.S. citizen or U.S. permanent resident on U.S. payroll.

     

    You can also enroll these family members:

    • Your spouse/domestic partner
    • Your dependent children or those of your spouse/domestic partner
  • When can I enroll?

    You can enroll anytime!

    At certain times you may be allowed to enroll in the Group Universal Life plan by not completing as many questions. These times include:

    • Within 60 days of your initial eligibility date.
    • During special enrollment periods as offered by your employer and the insurance provider.
    • Within 60 days of marriage.
    • Within 60 days of the birth or adoption of your first child. Coverage for a newborn will begin when the child is 14 days old, however the application for coverage could be received immediately following the birth.
  • Do I have to meet any medical requirements?

    If you do not apply for yourself and your eligible family members during your initial eligibility date or during a special enrollment period, you will be required to answer a more comprehensive health questionnaire and be approved by the insurance company before coverage can begin.

    If you apply when first eligible: 

    • You can enroll in coverage up to 2 times your annual base pay, not to exceed $600,000.
    • You can apply for up to $10,000 for your spouse/domestic partner.
    • You can apply for up to $10,000 for each of your eligible children, without providing evidence of good health.
  • What’s the minimum amount of life insurance I should have?

    To help you get an idea of how much coverage you may need, try MetLife’s Life Insurance Calculator.
  • How much will this coverage cost?

    Employee and Spouse/Domestic Partner Coverage


    Monthly cost of insurance per $10,000 coverage unit

    Age Rate

    Under 30

    $0.51

    30-34

    0.68

    35-39

    0.77

    40-44

    0.85

    45-49

    1.53

    50-54

    2.55

    55-59

    4.85

    60-64

    7.23

    65-69

    10.71

    70 and over

    Available upon request






     

    Child Coverage

    Coverage Amount

    Monthly Cost

    $5,000

    $1.00

    $10,000

    $2.00

     

  • What if my employment status changes?

    When you leave or retire from your current employer, you can continue your coverage without interruption as long as the group policy is in effect, subject to applicable law and the policies' terms and conditions. Although payroll deduction will no longer be available, you can opt for other payment methods such as direct bank account deduction, credit card billing or home billing. Higher rates may apply.
  • Why choose Group Universal Life?

    Perhaps the best advantage of Group Universal Life Insurance is the availability of a special interest-bearing, tax deferred account. Accumulated cash value, if any, can be withdrawn tax-free up to an amount equal to your cost basis. Tax-favored loans and withdrawals may be available.1 Withdrawals are often paid out tax-free. You can access the money whenever you want and for whatever you want. You can also take a loan against the value in your cash fund and continue to earn interest on the borrowed amount. Minimum withdrawal amount is $200.

     

    1 In general, participants may withdraw cash value equal to premiums paid without tax consequences although less favorable rules may apply in the first 15 years. However, if the funding of the certificate exceeds certain limits, it will become a “modified endowment contract’ (MEC) and become subject to “earnings first” taxation on withdrawals and loans. An additional 10% penalty for withdrawals and loans taken before age 59½ will also generally apply. We will notify you if a contribution would cause your certificate to become a MEC. Withdrawals and loans reduce the death benefit and cash value, thereby diminishing the ability of the cash value to serve as a source of funding for cost of insurance charges, which increase as you age.

  • Are there other benefits to this plan?

    In addition to the advantages of this plan over other life insurance options, this plan offers even more special benefits:

    • Automatic Coverage Increase: Your employee coverage will automatically increase every August 1 utilizing your salary as of June 1. If you would like to opt out of this feature you must contact Mercer Voluntary Benefits.
    • Accelerated Benefit Rider:
      • An advance payment of your life insurance benefits is available if you are diagnosed with a terminal illness with a life expectancy of 12 months or less (may vary by state).
      • You can request payment up to 80 percent of your coverage amount, up to a maximum of $750,000.
      • Advance payment permanently reduces the death benefit.
      • This benefit is available to you and your covered spouse/domestic partner.
    • Children's Portability Privilege: When your child is no longer an eligible dependent, he or she can apply for an increase in coverage up to 5 times the amount of the children's rider not to exceed $50,000, as long as the group policy is still in effect. The child will be issued a Group Universal Life certificate and will be eligible to contribute to a cash fund. The request for coverage must be made by writing to Mercer Voluntary Benefits within 90 days of the date the child is no longer an eligible dependent.

      A Children’s Portability Privilege is not available for a disabled child. Children's coverage may be continued for a disabled child as a rider to the existing adult Group Universal Life certificate. The dependent rider may remain in effect as long as the employee or spouse maintains coverage. Please contact Mercer Voluntary Benefits to request continued coverage for a disabled child.
  • When would my coverage start?

    If evidence of good health is required...
    Coverage is effective on the first of the month after coverage is approved by MetLife.

    If evidence of good health is not required...

    Coverage is effective the first day of the month in which your first payroll deduction begins. If you enroll during a special enrollment period, coverage begins when stated in the offer.
Group Universal Life Information & Forms

These form(s) are in Adobe Acrobat Reader (PDF) format and are available for downloading and printing.

 

Life Insurance Calculator
Enrollment Form
Beneficiary Change Form
Customer Service Request Form
MetLife Privacy Notice