Each administrator currently participating in the Trust’s Health Insurance Plan has a $50,000 group life insurance policy from The Standard Insurance Company. This policy also contains an additional $50,000 Accidental Death and Dismemberment (AD&D) Benefit. The policy benefit will reduce to 65% at age 70, and to 50% at age 75 for active administrators. For eligible covered retired administrators, benefits reduce to 50% at age 70. The policy also provides $2,000 life insurance coverage for the spouse of an active or retired administrator and a $2,000 benefit for an active or retired administrator’s dependent children.
In addition, the Trust administers a $100,000 group life insurance policy for all active employees and CCSD retirees who elect to continue the policy after retirement. The policy also contains an additional $100,000 Accidental Death and Dismemberment (AD&D) Benefit. Both the original amount and AD&D Benefit reduce to 65% at age 70, and to 50% at age 75 for active administrators. For eligible covered retired administrators, benefits reduce to 50% at age 70. This policy is currently provided through The Standard Insurance Company. This policy is a negotiated benefit through the Trust to active district administrators and offered to CCSD retirees. There is no cost to active administrators. There is no negotiated life insurance contribution provided once an administrator retires. However, the Trust, as a free service to its participants, will collect the annual premiums from the retirees and transfer the premiums to The Standard each month. The premium per thousand dollars of coverage for retirees is the same as that of active administrators.
Life insurance provides money for your loved ones, or actually anyone you designate, after you're gone. The person you designate is called the "beneficiary." In particular, life insurance proceeds might be used to pay debt, the cost of the funeral, estate taxes, future college tuition, or any other current or anticipated expense. Life insurance proceeds are generally received tax free by the beneficiary.
Term insurance
This policy pays a death benefit if you die within a specific period of time (the term of the policy). Like auto and homeowner's insurance, term insurance only covers you during the time you're making payments. For this reason, it's less expensive than permanent life insurance.
Permanent insurance
This policy continues until you die (as long as you make timely payments) and provides a savings feature that builds up a cash reserve you can use while you're alive. In fact, if there's enough, you can use the cash to pay the premiums, which can be helpful in times of tight finances. This insurance is more expensive than term insurance.
For more information about personal life insurance, please contact us by email or call us at 702-252-0888.