Group Universal Life (GUL)

Group Universal Life (GUL)  

Group Universal Life

You can worry, or you can plan. Planning's better.

Overview

We all have concerns about how our loved ones would fare if something happened to us. We worry about their financial security. We worry whether our spouse will be able to keep our home; we worry whether our children will be able to afford college; we worry how the bills will get paid.

Life insurance allows you to replace worry with planning… solid financial planning to protect your loved ones when you're no longer there to do so. With Life insurance, you can create a "safety net" for your family by selecting plans that will provide the resources for them to carry on.

Who Needs Life Insurance?

You do. Single or married. Buying your first home or preparing for retirement. Raising children or sending them off to college. No matter where you are in life, insurance should be part of your financial plan. By purchasing life insurance through your employer, you benefit from:

  • Affordable coverage at group rates
  • Convenient payroll deduction
  • Guaranteed issue amounts
  • Access to knowledgeable service representatives


What You Get From Group Universal Life Insurance

  1. Money for you now. You can call on your cash accumulation fund for withdrawals or for low-interest loans if you build up enough cash value.
  2. Money for you later. Save through the cash accumulation fund; earn tax-deferred interest on your savings.
  3. Yours for the asking. Apply within 45 days of your eligibility date and you may not have to answer any medical questions or provide any proof of good health.
  4. Protection without payments. If you’ve built up adequate cash value, you can stop making contributions temporarily and continue to enjoy your protection.
  5. You can take it with you! You can keep your coverage in force even if you leave, retire or change employers—higher rates may apply

 

Please read the Plan Information for a full disclosure of plan provisions, benefits, exclusions, limitations, and effective dates of coverage prior to making your selections.

You can Enroll for Group Universal Life Insurance online by using the "Enroll Online" button. Or, you can Complete An Enrollment Application and submit to Cigna.

Option 1

Enroll Online

Option 2

Download Your Enrollment Application

Complete, sign and date the enrollment application and return to Cigna at the address shown on the application.


If you have questions, please call 1.800.828.3485 to speak to a Cigna representative (Monday through Friday, 8 AM to 5 PM CST or 9 AM to 6 PM EST).

My Benefits

  • Who is Eligible for Coverage and How Much Can You Buy?

    It’s a family matter. Subject to any applicable restrictions or limitations in the GUL policy, coverage options for you and your family are summarized as follows.

    Coverage for You

    You are eligible for GUL insurance if you are an employee of Lehigh Valley Health Network regularly working a minimum of 16 hours per week.

    • Coverage amounts available: In $10,000 increments, up to the maximum of 5 times your annual compensation rounded to the next higher $10,000 or $1,000,000, whichever is less.
    • Guaranteed* issue amount available within 45 days of your eligibility date without proof of good health: 2 times employee’s annual compensation, rounded to the next higher $10,000; or $200,000, whichever is less.
    • If you provide proof of good health, you can:
      • Purchase more than the guaranteed issue amount—up to 5 times employee’s annual compensation, rounded to the next higher $10,000; or $1,000,000, whichever is less.
      • Increase your life insurance coverage at any time, up to the maximum allowed.

     

    *In certain situations, you may purchase the face amount of coverage without answering any health questions or taking any medical tests.


    Coverage for Your Spouse*

    You can purchase coverage for your eligible spouse in the following amounts if you provide proof of good health:

    • In $10,000 units, up to the maximum of 3 times your annual compensation, rounded to the next higher $10,000, or $100,000, whichever is less.


    To be eligible for coverage, your spouse must be younger than age 65. For coverage to become effective, you must be actively at work and your spouse must not be hospitalized, confined at home under the care of a doctor, or unable to perform the normal daily activities of a person of the same age and gender.

     

    Coverage for Your Children

    If you elect GUL for yourself or your spouse, you may also purchase insurance for all of your unmarried, dependent children who are at least 15 days old and younger than 19 years old, or less than age 25 if the child is a full-time student and primarily supported by the employee, or 19 years of age or older and primarily supported by the employee and incapable of self-sustaining employment because of a mental or physical handicap.*

    For just one premium, you can cover all of your dependent children for the following amounts:

    • You can obtain $5,000 or $10,000 in guaranteed issue amounts of term insurance coverage if you enroll your child(ren). When your child(ren) no longer qualifies as a dependent, they are eligible to enroll for GUL coverage as an adult.


    For your dependent children’s coverage to be effective, they must not be hospitalized, confined at home under the care of a doctor, or unable to perform the normal daily activities of a person of the same age and gender.

     

    *Please note that in certain states, restrictions may apply and ages may vary.

  • What Is Not Covered?

    The death benefit, or an increase in the death benefit, will be limited to a refund of premium if an insured commits suicide within the first two years of the effective date of the GUL coverage or within two years of the effective date of an increase in coverage, unless limited by applicable state law.

  • When Does Coverage Begin and End?

    Even if eligible for both, no one can be covered as an employee and a dependent at the same time, or as the dependent of two employees. If you meet the eligibility requirements and Cigna receives your enrollment application within 45 days of your eligibility date, your coverage will take effect on the later of the first day of the month after the date you elect coverage, or the date the first payroll deduction is authorized. Provided your dependents’ applications have been received, their coverage will take effect on the later of the first day of the month after Cigna agrees in writing to cover your spouse, or the date the first payroll deduction is authorized.

    • If you apply for an amount of life insurance coverage that is greater than the guaranteed issue amount, or apply 45 days or more after becoming eligible, coverage will take effect on the date Cigna agrees in writing to cover you. You may need to have a medical exam or provide a physician’s statement for coverage greater than the guaranteed issue amount.
    • Employee or spouse coverage will end when you cancel the coverage, when the group policy is canceled, when the premiums are not paid, on the Certificate Maturity Date (which is the policy anniversary date that is the same as or next following the insured’s 100th birthday), or when the insured dies, whichever comes first.
    • Dependent children coverage will end when your coverage ends (or when your spouse’s coverage ends, if their coverage is on the spouse’s certificate); you cancel their coverage; when they are no longer eligible; or when the insured dies, whichever occurs first. Later on, when they no longer qualify as dependents, your children can convert this coverage to their own GUL insurance plans without proof of good health. All you need to do is call the Cigna Customer Service Center to receive the appropriate form, and have your child(ren) return the form within 90 days of their 25th birthday (or when they are no longer eligible).
  • Other Benefit Features

    How much life insurance do you need today? How much will you need in two years? Five years? What if you can’t afford to continue paying your premiums due to a terminal illness? At Cigna, we’ve thought about these questions and have developed options that can help you maintain adequate insurance levels as your needs—and your circumstances—change.

    Automatic Increase Option

    With the Automatic Increase Option, your GUL coverage will increase automatically (not to exceed the maximum allowed) on each plan anniversary if you have qualifying salary increases. With this option, you reduce your risk of becoming underinsured. Your payroll deduction amount will also be increased to cover the higher amount of protection. (If you don’t want your coverage increased, you must decline this option by contacting the Cigna Customer Service Center.) Here’s an example of how this feature works:
     

    Ted is a 32-year-old, makes $45,000 a year and has GUL coverage equal to three times his salary. He gets a salary increase of 3%. With the Automatic Increase Option, his insurance coverage would be increased to $139,050, rounded up to the next $10,000 = $140,000. Accordingly, his payroll deduction amount would be automatically increased for this additional coverage.

     

    Accelerated Payment Benefit – Terminal Illness

    If you or your covered spouse becomes terminally ill and aren’t expected to live more than 12 months, you can receive up to 50% of your coverage amount—potentially tax free.* The money is paid out in a lump sum, directly to you, to use for whatever you wish. To qualify to receive the benefit, you must provide medical certification from two unaffiliated physicians that your life expectancy or that of your spouse is 12 months or less. Cigna will send payment as soon as your request, medical certification, and supporting evidence are reviewed and approved. Your premium obligation continues on the full amount of coverage if this benefit is exercised. This benefit is automatically built into the plan.
    The following example illustrates how a 50% benefit would pay out on $100,000 of coverage:
     

    Payment of Benefit Monthly Premium

    $100,000 of GUL coverage

    $8.80

    - $50,000 (50% potentially tax-free, lump-sum payment)

     

    $50,000 remaining death benefit amount

    $8.80

    *You may want to seek advice from your personal legal or tax advisor before exercising this option.

     

    Accelerated Payment Benefit – Nursing Care or Custodial Care

    If you or your spouse are ever confined to a nursing care or custodial care facility (hospitals, mental or alcohol facilities do not qualify) located in the United States, the accelerated payment benefit for nursing care or custodial care allows you to use life insurance proceeds in advance to help with nursing care confinement. This benefit will pay up to the lifetime maximum benefit of 50% of the coverage amount in effect. To be eligible for payment under this benefit, you cannot have received the maximum benefit payable under the terminal illness benefit. There is a 90-day waiting period before benefits can be paid. Benefits will be payable in a lump sum or in equal monthly installments of 25 months. Benefits will end when the insured is no longer confined and impaired, benefits reach the lifetime maximum, coverage under the policy ends, or when the 25th payment is made to the insured, whichever is the first to occur.


    The benefit paid for nursing care or custodial care may not be sufficient to cover all of the expenses associated with confinement in a nursing home.

     

    Waiver of Cost of Life Insurance

    The Waiver of Cost of Life Insurance benefit is automatically built into the GUL plan at no additional cost to you. Your cost of life insurance will be waived if you become totally disabled for six continuous months or more, and total disability occurs before age 60. Benefit ceases at age 65. Contributions to the CAF are not waived.

  • How Much Will the Coverage Cost?

    Use these charts to determine the monthly cost of life insurance coverage only. To determine the cost of coverage, find your age or your spouse’s age in the left column of the Monthly Cost of Insurance chart below, then read across to find the monthly cost of insurance for each $10,000 of coverage. These costs do not reflect any money going into the CAF. Rates are subject to change but will not exceed the guaranteed maximum cost of insurance shown in your certificate. If you leave, retire, or change employers, higher rates may apply. To get a free, no-obligation online quote, click the "Enroll Online" button.
     

    AGE OF EMPLOYEE OR SPOUSE MONTHLY COST OF INSURANCE
    (RATES PER $10,000)
      EMPLOYEE SPOUSE

    UNDER 30

    $0.58

    $0.99

    30-34

    $0.66

    $1.08

    35-39

    $0.87

    $1.35

    40-44

    $1.42

    $2.00

    45-49

    $1.98

    $2.66

    50-54

    $3.39

    $4.24

    55-59

    $4.90

    $6.12

    60-64

    $7.99

    $10.28

    65-69

    $15.55

    $19.72

     

    Rates for ages 70 and over are available upon request.

     

    Your age for calculating monthly cost of insurance will be updated on each January 1. GUL insurance premiums and CAF contributions are paid for with after-tax dollars.

     

    DEPENDENT CHILD COVERAGE RATES
    $5,000 of coverage for all your dependent children $1.00 per month
    $10,000 of coverage for all your dependent children $2.00 per month

     

    Rates are subject to change.

  • The Cash Accumulation Fund (CAF)

    Saving money isn’t easy, but the secret to saving is simple. All you have to do is set aside a certain amount out of each paycheck—before you receive it. Even a small amount set aside on a regular basis can add up to significant savings over time. And you can do it painlessly with your Group Universal Life Insurance Cash Accumulation Fund. You can contribute through convenient payroll deductions or lump-sum payments.

    Contributions to the Cash Accumulation Fund are optional and determined by you. Maximums are based on the Internal Revenue Code (IRC) limits and are subject to a 2% charge to cover premium tax and other taxes.

  • What Are Your Goals?

    Money for retirement, cash for college, a down payment on a home? Whatever they are, contributing to the Cash Accumulation Fund can help you reach them. The net cash value you build will earn interest that is income tax-deferred in most cases. The minimum rate will never be less than 4%. To build your cash value, simply determine how much extra you wish to contribute to the program beyond the cost of insurance. Then, sit back and watch your money grow. It’s that easy!

  • Tax-Deferred Accumulation

    Under current tax law, the competitive interest you earn on your Cash Accumulation Fund is income tax-deferred as long as it remains in your account. And that means your interest compounds faster because it isn’t eroded by taxes each year.

  • Easy Access to Your Money

    The money in your Cash Accumulation Fund is yours to use as financial needs arise. You can borrow against your Cash Accumulation Fund or make an outright withdrawal. The minimum loan or withdrawal amount is $250. You will be charged a $25 transaction fee for each withdrawal.

    • When you do decide to withdraw your money, you’ll only pay taxes if the withdrawal amount exceeds the amount of your total contributions (cost of insurance plus Cash Accumulation Fund contributions).
    • To take money out of your GUL account, download a Withdrawal Form from the Forms section below, and mail it to Cigna. Or if you prefer, you can call Cigna’s Customer Service Center at the number located on “Contact Us” and ask for the appropriate form.
    • If you want to take out a loan, call the Cigna Customer Service Center at 1.800.828.3485 and ask for the appropriate form. You’ll be assessed 8% interest annually on the outstanding loan amount, but you will continue to be credited with 6% on the loan account value. You should not owe any income tax on your loan unless you cancel your coverage or your coverage lapses.
  • Designating Your Beneficiary

    You can designate your beneficiaries during the enrollment process and maintain your beneficiaries online once your coverage is issued by clicking on "My Account" at the top right corner of your screen.

     

    If the listed beneficiary is a trustee or a trust, you will need to enter the trustee's name, the name of the trust and the date of the trust agreement. The trust document must be presented in order for the claim to be processed.

  • Apply Today

    You can Enroll For Group Universal Life Insurance Online by using the "Enroll Online" button. Or, you can Complete An Enrollment Application and submit to Cigna.

  • How Do I Pay My Premium?

    You pay your premiums through payroll deduction. The total depends on how much coverage you select and your age.

  • How Your Claims Are Paid

    Claim forms can be obtained online under the Forms section below or by calling the toll-free number listed on the 'Contact Us' page.

Forms

Enroll online by clicking on the “Enroll Online” link under Option 1 above; this will speed up your enrollment process.


These form(s) are in Adobe Acrobat Reader (PDF) format and are available for downloading and printing. Click here to download a free copy of Adobe Acrobat Reader.


Enrollment Applications 

If you submit your enrollment application via a paper form, we will enter it into the Cigna Trusted Advisor® website so you can view it online through My Account.

Enrollment Application


Beneficiary Form

If you submit your beneficiary designation via a paper form, we will enter it into the Cigna Trusted Advisor® website so you can view it online through My Account.

Beneficiary Designation


Change Forms 

Request for Service Life Change Form

Use this form to make changes to the features and benefits of your plan, including reducing your coverage or cancelling coverage for your children.

Surrender/Cancel Form

Use this form to make cancel/surrender your or your spouse’s coverage.

Funds Withdrawal Form

Use this form to withdraw funds from your Cash Accumulation Fund or to cancel your contributions.


Claim Forms 

Group Universal Life Insurance Claim Form

Accelerated Payment Benefit Claim Form

Waiver of Premium Form

FAQs

  • Can I keep this insurance if I leave my employer?

    Your Group Universal Life coverage is yours even if you leave the company as long as the group policy is in effect. You will be billed directly for your cost of coverage at portable rates. Any additional contributions you make to the cash accumulation fund may also be included in this payment. Portable rates are higher than the active employee rates.

  • Do I have to complete proof of good health?

    You only need to complete proof of good health if you are applying for coverage above the guaranteed issue amount or after your eligibility period.

  • Who can enroll for life insurance?

    You can enroll for yourself, your spouse and eligible dependents.

  • How do I designate a beneficiary?

    You can designate or change your beneficiary when you enroll for Group Universal Life Insurance online or you can complete a beneficiary designation form by going to the Forms section above, download and submit to Cigna. Once you have enrolled for Group Universal Life insurance, you can view and update your beneficiary online through My Account at the top right corner of this page.

  • Are there any other programs I should know about?

    Yes. Our Group Universal Life insurance plan includes many value-added programs, offered at no additional cost, to help you and your family maintain your health, well-being and sense of security throughout your lifetime. To see which programs are available to you select "Value-Added Programs" from the menu above.