Group Universal Life (GUL)

Group Universal Life (GUL)  

Group Universal Life

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

Help preserve your Family’s Lifestyle.

Having adequate insurance is not only the basis for a sound financial plan, it helps provide the additional financial protection you need to help you feel confident that your home, family, and finances can be more protected if you or your spouse should die prematurely.

Please read the plan information in the My Benefits section below or in the Group Universal Life brochure for information about plan provisions, benefits, exclusions, limitations, and effective dates of coverage prior to making your selections.

 

  • 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 a full-time employee of Arthur J. Gallagher & Co., actively at work at least 30 hours per week, and has met the employer’s requirements.

    • Coverage amounts available: 1-8 times your annual earnings, rounded to the next higher $1,000, if not already an even multiple of $1,000. The maximum Coverage Amount will not exceed 8 times your annual earnings, rounded to the next higher $1,000; or $2,500,000, whichever is less
    • Guaranteed* issue amount available within 31 days of your eligibility date without proof of good health: 3 times employee’s annual earnings, rounded to the next higher $1,000; or $600,000, whichever is less.
      • If you provide proof of good health, you can:
        • Purchase more than the guaranteed issue amount—up to 8 times employee’s annual earnings, rounded to the next higher $1,000 less any Paid-up insurance, if any; or $2,500,000, 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*

    If you elect coverage for yourself, you can purchase coverage for your eligible spouse in the following amounts:

    • In $10,000 units, up to the maximum of $250,000, or 100% of your coverage amount, whichever is less.
    • Guaranteed** issue amount available for your spouse during your first 31 days of eligibility without proof of good health: $30,000.
    • The guaranteed issue amount is also available for your new spouse within 31 days of your marriage date without proof of good health.
    • If your spouse provides proof of good health, you can purchase coverage up to 250,000, or 100% of your coverage amount, whichever is less.


    To be eligible to enroll for coverage, your spouse/domestic partner must be younger than age 65. For coverage to become effective, your spouse/domestic partner must not be: hospitalized, confined at home under the care of a doctor, receiving disability benefits, or unable to perform the normal daily activities of a person of the same age and sex.

     

    *For purposes of this overview, wherever the term spouse appears it shall also include Domestic Partner/Civil Union Partner. Additional information is available from your Benefit Services Representative.

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

     

    Coverage for Your Children

    If you elect GUL for yourself, 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 to age 26 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. Note: Employees need to notify Cigna when their last child is no longer eligible for coverage due to the fact that Cigna does not collect personal data on children covered under the policy.

    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.

     

    Life Status Change

    If a life status change happens, the employee is eligible for an additional 1 times their annual earnings (up to the plan guaranteed issue allowed), if the coverage elections are made within 31 days of a life event. A Life Status Change is defined as any of the following events:

    • Marriage, legal separation, annulment, or divorce;
    • Birth or adoption of a child;
    • Purchase of a primary home;
    • Death of a spouse or child.
  • What Is Not Covered?

    A refund of premiums will be made, minus any outstanding loans or cash withdrawals if an insured commits suicide (while sane or insane), within two years of their policy’s start date, or within two years of the effective date of an increase in coverage, unless limited by applicable state law.

  • Other Benefit Features

    When you enroll in GUL, you can plan for your retirement and secure your loved ones’ lifestyle at the same time. The GUL insurance program provides your family with generous amounts of life insurance and also provides you with a way to save money by contributing to the optional Cash Accumulation Fund (CAF) which earns tax-deferred interest

    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 financial hardship? At Cigna, we’ve thought about these questions and have developed options that can help you maintain adequate insurance levels as your needs and circumstances change.

    Automatic Increase Option

    With the Automatic Increase Option, your GUL coverage will increase automatically (not to exceed the maximum allowed) on each April 1st (based on the prior year-end eligible compensation) if you have qualifying salary increases. Your payroll deduction amount will also be increased to cover the higher amount of protection.

    The following example illustrates how this feature works.
     

    Ted is 32 years old, makes $26,500 a year and has GUL coverage equal to three times his salary. He gets a salary increase of $5,000. With the Automatic Increase Option, his insurance coverage would be increased to $94,500, rounded up to the next $1,000 = $95,000. Accordingly, his payroll deduction amount would be automatically increased for this additional coverage.

     

    Note: This is a fictitious example used for illustrative purposes only. Not an actual Cigna customer experience.

     

    Accelerated Payment Benefit

    If you or your covered spouse/domestic partner become terminally ill and the life expectancy is a year or less, you can receive a maximum of 80% of your coverage amount, up to $750,000, potentially tax-free. The money is paid out in a lump-sum directly to you or anyone you designate to use however 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/domestic partner is 12 months or less. Cigna will send payment as soon as your request, medical certification and supporting evidence are reviewed and approved. This benefit is only available one time, and is not available for dependent child coverage.

    Your premium obligation continues on the full amount of coverage if this benefit is exercised.

    The following example illustrates how an 80% benefit would pay out on $100,000 of coverage:
     

    Payment of benefit
    $100,000 of GUL coverage
    - $ 80,000 (80% potentially tax-free lump-sum payment)
    Monthly premium
    $5.80

     
    $ 20,000 remaining death benefit amount $5.80

     

    Note: Actual coverage and benefit amounts will vary by policy design. Coverage is subject to all terms and conditions as specified in the policy.
    You may want to seek advice from your personal legal or tax advisor before exercising this option.

  • How Much Will the Coverage Cost?

    Use the charts below 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 chart below, then read across to find the monthly cost of insurance for each $1,000 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.

     

    Age of Employee or
    Spouse/ Domestic Partner*
    Monthly Cost of Insurance
    (Rates per $1,000)
    Under 30 $0.044
    30-34 $0.058
    35-39 $0.066
    40-44 $0.088
    45-49 $0.132
    50-54 $0.191
    55-59 $0.322
    60-64 $0.558
    65-69** $0.932

     

    *Your age for calculating monthly cost of insurance will be updated on each July 1.
    **If you are enrolling your spouse for the first time, he or she must be under age 65.

     

    Rates for age 70 and over are available upon request.
    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 $0.76 per month
    $10,000 of coverage for all your dependent children $1.52 per month
  • When Does Coverage Begin and End?

    Coverage start and end dates

    You and your dependent's coverage will start on the date we receive the completed and signed application and payroll authorization form, if:

    • You meet the eligibility requirements.
    • You apply within 31 days of your eligibility date.
    • You do not apply for more than the guaranteed issue amount.
    • You do not need to provide proof of good health.

    Otherwise, you and your dependent's coverage will take effect on the date Cigna agrees in writing to cover you and your dependents.

     

    You and/or your spouse's coverage will end on whichever comes first:

    • You cancel the coverage.
    • Insperity cancels the group policy.
    • You don't pay the premiums.
    • On your 99th birthday (or the July following your 99th birthday).
    • You or your spouse die.

     

    Dependent children coverage will end on whichever comes first:

    • Your coverage ends (or, when your spouse's coverage ends, if the child's coverage is on the spouse's certificate).
    • You surrender or cancel their coverage.
    • They are no longer eligible for coverage.
  • The Cash Accumulation Fund (CAF)

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

    You must be enrolled for GUL insurance to contribute to the CAF. Contributions to the CAF are optional and determined by you.

    Maximums are based on the Internal Revenue Code (IRC) limits and are subject to a 2% premium charge, which represents a portion of the state and federal tax imposed on contributions made to the fund. Since contributions are subject to very specific IRC guidelines, dependent upon your age, cost of insurance, and effective date of your certificate, it is recommended that you contact the Cigna Customer Service Center at 1.800.231.1193 and a customer service representative will calculate the maximum contribution for you.

  • What Are Your Goals?

    What are your financial goals? Are you trying to save for retirement, college tuition or a down payment on a home? Whatever your goals, contributing to the CAF 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%—a rate of return any saver can appreciate.

  • Tax-Deferred Accumulation

    Under current tax law, the competitive interest you earn on your CAF 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.

  • Cash Accumulation Fund Growth Charts

    The charts below show how rapidly the CAF can grow at the guaranteed minimum interest rate of 4% when compared to a traditional savings account earning the same 4% interest rate. The numbers shown below are on a cumulative basis. The charts assume that the CAF contribution, cost of insurance and deposits to a traditional savings account are paid on a monthly basis.

     

    $50 Monthly Contribution Scenario
    YEARS CAF 4% TRADITIONAL SAVINGS
    ACCOUNT 4%
    TOTAL
    CUMULATIVE TAX
    AMOUNT LESS TAX
    (savings - total tax)
    5 $3,253.60 $3,241.49 $80.50 $3,160.99
    10 $7,212.11 $7,009.41 $336.47 $6,672.94
    15 $12,028.24 $11,389.28 $796.43 $10,592.85
    20 $17,887.80 $16,480.46 $1,493.49 $14,986.97
    25 $25,016.85 $22,398.50 $2,466.17 $19,932.33
    30 $33,690.43 $29,277.66 $3,759.22 $25,518.44

     

     

    $100 Monthly Contribution Scenario
    YEARS CAF 4% TRADITIONAL SAVINGS
    ACCOUNT 4%
    TOTAL
    CUMULATIVE TAX
    AMOUNT LESS TAX
    (savings - total tax)
    5 $6,507.21 $6,482.97 $160.99 $6,321.98
    10 $14,424.23 $14,424.23 $672.94 $13,345.88
    15 $24,056.48 $22,778.55 $1,592.85 $21,185.70
    20 $35,775.60 $32,960.93 $2,986.98 $29,973.95
    25 $50,033.70 $44,796.99 $4,932.33 $39,864.66
    30 $67,380.86 $58,555.32 $7,518.44 $51,036.88

     

    The CAF contribution scenario reflects a 2% premium charge. The traditional savings account scenarios assume a 25% tax bracket. The actual CAF interest rate can adjust quarterly but will never go below 4%. Current savings account interest rates are below 4%. Actual rates can be more or less favorable than shown. Savings account interest rates are not guaranteed, fluctuate with market conditions and vary among financial institutions. A CAF is not federally insured (FDIC). As an insurance product, it must comply with each applicable state’s specific insurance reserve requirements.

  • Easy Access to Your Money

    The money in your CAF is yours to use as financial needs arise. You can borrow against your CAF 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 CAF contributions).
    • If you want to take out a withdrawal, complete the Funds Withdrawal form located in the Forms section below.
    • If you want to take out a loan, call the Cigna Customer Service Center at 1.800.231.1193 and ask for the appropriate form. You’ll be assessed 8% interest annually on the outstanding loan amount, but will continue to be credited 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.

     

    Important Beneficiary Designation Information

    • All beneficiary designations submitted after July 2012 for your Group Universal Life Insurance coverage are displayed on Cigna Trusted Advisor®.
    • Paper beneficiary forms submitted before July 2012 will not be reflected on the site; however, the information is kept on file. To have all of your information recorded on Cigna Trusted Advisor®, simply complete a new online beneficiary designation and it will replace the paper version.
    • If you are a new applicant and would like to have access to your beneficiary designations online via the Cigna Trusted Advisor website, you will need to complete an online beneficiary designation during the application process.
    • If you are already covered and have previously designated a beneficiary or beneficiaries, be assured that your beneficiaries designated prior to July 1, 2012 are maintained in Cigna’s records. However, if you wish to be able to view your beneficiary designations online, you will need to submit a new designation(s) online.

     

    Need To Access Or Designate Your Beneficiaries Online?

    To access your beneficiary designations:

    • Click on the "My Account" tab.
    • On the Cigna Trusted Advisor login screen, enter your username and password to access your account
    • Select “Group Universal Life Insurance”
    • Select “Beneficiary Information”

     

    To update your beneficiary designation:

    • On the Beneficiary Information screen, click on “Edit” for whichever coverage you want to designate a beneficiary.
    • Read the agreement, check the box and click “Continue” to the Beneficiary Designation page.
    • Complete the information on the Beneficiary Designation page.
    • Print the confirmation for your records.
  • Apply Today – Important Tips for Applying for Coverage Online

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

     

    Important Tips For Applying For Coverage With Cigna Trusted Advisor

    • Online applications for Group Universal Life insurance will open in a separate browser window.
    • For your protection, an online application will time out after 30 minutes of inactivity; any un-submitted applications will NOT be saved.
    • Do not use the “Back” button in your browser; you will have the option to edit your application when you see the “Edit Application” button before each application is completed.
  • 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 to File a Claim

    Claim forms can be obtained online under the Forms section below. For questions on filing a claim or completing the claim form, call 1.800.231.1193

  • Words to Know

    Guaranteed Issue:

    an amount of insurance you can buy during the enrollment period without having to provide proof of good health.
     

    Eligible earnings:

    your annual compensation. This includes overtime, bonuses and certain additional compensation.
     

    Maximum coverage:

    the highest amount of GUL coverage Cigna provides to you.
     

    Eligibility date:

    the first date you are eligible to become covered or enroll for GUL insurance.
     

    Proof of good health:

    evidence of your good health. As an example, your responses to medical questions on an insurance application.
     

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 form or via email at DSM_CignaCustomerSupport@infymccservices.com.

 

If you have questions, please call 1.800.231.1193 to speak to a Cigna representative (Monday through Friday, 8 AM to 5 PM CST or 9 AM to 6 PM EST).

Forms

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.

 

Return completed Beneficiary Forms or Change Forms to the Cigna Customer Service Center by:

 

Enrollment Applications

Apply online for new coverage or increase existing coverage by clicking on "Enroll Online" at the top of this page.

 

Beneficiary Form

Review and update your beneficiary designations online by clicking on the "My Account" tab.

You may wish to complete a paper designation form to make your designation, particularly if you have estate tax considerations or have needs that are more complicated that this online system allows. We strongly encourage you to consult the legal advice of an attorney in these instances. 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 Form

 

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 Death Benefit Claim Form

 

Return completed Claim Forms to the address at the top of the form.

For questions on filing a claim or completing the claim form, call 1.800.231.1193