December 11, 2023
If you continued your Optional Term Life Insurance benefit into retirement, this is a reminder that coverage begins decreasing at age 70 while your premium rates continue to increase every five years.
Coverage changes
Once you turn 70, the Optional Term Life Insurance you continued at retirement reduces to a percentage of the amount you had before you turned 70.
| Age: | Your coverage reduced to: |
|---|---|
| 70-74 | 65% |
| 75-79 | 40% |
| 80-84 | 25% |
| 85-89 | 15% |
| 90+ | 10% |
For example, at age 70, you will only receive 65% of the amount of coverage you elected before you turned 70. Your new coverage amount will begin the following Jan. 1 after your 70th birthday. The coverage amount will continue to decrease at the beginning of the Plan Year (Jan. 1) after your 70th, 75th, 80th, 85th and 90th birthdays, while the rate you pay will continue to increase. If your Optional Life insurance is set to reduce below $10,000, ERS will automatically enroll you in Fixed Optional Life Insurance.
$10,000 Retiree Fixed Optional Life Insurance
If a flat amount of protection for life best meets your needs, you may change your coverage during Fall Enrollment to the $10,000 Retiree Fixed Optional Life Insurance benefit. The current cost is $24.80 per month – and the coverage amount does not change with age. You can decrease your life insurance coverage any time during the year and do not need to wait for Fall Enrollment or a qualifying life event.
To learn more about the coverage and cost of your life insurance options, you can access the Retiree Benefits Book.
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