Life Insurance

MMSD offers two life insurance policies to employees.  The policy referred to as Basic Plus Retirement is closed to new entrants as of January 1, 2019.  New employees starting January 1, 2019 are enrolled in the Basic plan.  Each plan is summarized below.  The plans are similar but only the Basic Plus Retirement Plan provides coverage into retirement.  

Basic Plus Retirement Plan

The Basic Plus Retirement plan is closed to new entrants as of January 1, 2019.  Employees enrolled in this plan as of December 31, 2018, remain enrolled in this plan as long as they continue to pay their share of the premium. This plan is considered voluntary, meaning the employee elects to participate.  Below is a summary of the plan’s eligibility and benefits.  See the Plan Certificate for details.
 
Employee basic coverage.  Employee basic coverage under this plan equals one times the employee’s annual earnings, rounded to the next higher multiple of $1,000. For example, if your earnings are $18,200, your basic coverage is $19,000.  Coverage will increase as earnings increase and premiums increase with age and increases in earnings. Coverage under this plan continues for life, but for retirees, benefits are reduced starting at 65 years of age.   

For employee basic coverage, the district pays for 85% of the premium and enrolled employees are responsible for 15% of the premium. Retirees are responsible for 100% of the premium until age 65.    

Supplemental coverage.  Supplemental employee coverage is available in increments of $10,000, up to $300,000 (or 5x annualized salary, whichever is less). Supplemental employee coverage ends on the date of retirement or age 65, whichever occurs later.

Spousal Coverage is available in increments of $5,000, up to 50% of the employee’s supplemental coverage, not to exceed $150,000. An employee may not be insured as both an employee and as a spouse on another employee’s plan.  Supplemental spousal coverage ends on the employee’s retirement date or the end of the month in which the spouse attains the age of 65, whichever is later.  
 
Dependent Coverage is available at $5,000 or $10,000.  A dependent child may not be a covered as a dependent by more than one employee.  Dependent coverage ends when the dependent is no longer a dependent or the employee’s life insurance ends.

 
Basic Plan

This plan is for all newly eligible employees enrolled as of January 1, 2019. Below is a summary of the eligibility and benefits available under the Basic Plan.  See the Plan Certificate for details.  

Employee Basic coverage. Benefits eligible employees are automatically enrolled in term life insurance and accidental death and dismemberment insurance equal to one times annualized earnings rounded up to the next $1,000. For example, if your earnings are $18,200, coverage is $19,000. The District pays 100% of the premium.  Coverage will increase as earnings increase, up to $350,000. Coverage ends when the employee is no longer employed by the District unless the employee converts their policy to an individual policy.

Supplemental coverage.  Supplemental coverage for an employee, their spouse and their dependents is available in addition to basic coverage.  Supplemental coverage is voluntary and paid entirely by the employee. Some supplemental coverage maybe subject to evidence of insurability requirements, i.e. medical underwriting.  

Supplemental employee coverage is available in increments of $10,000, up to $500,000 (or 5x annual salary, whichever is less) starting January 1, 2025.

Spousal coverage is available in increments of $5,000, up to 50% of the employee’s supplemental coverage not to exceed $150,000.  An employee may not be insured as both an employee and as a spouse on another employee’s plan.  Spousal coverage ends on the date of divorce or when the employee’s life insurance ends.

Dependent coverage is available at $5,000 or $10,000. A dependent child may not be a covered as a dependent by more than one employee.  Dependent coverage ends when the dependent is no longer a dependent or the employee’s life insurance ends.  

Enrollment in Coverage

New employees as of January 1, 2019 are automatically enrolled in the Basic Plan when they are hired into a benefits eligible position. To enroll in supplemental coverage for yourself, your spouse, or your dependents, you must complete and submit a group life insurance enrollment form within 31 days of becoming benefits eligible.  See Enrollment Information under Life Insurance Resources for information on how to enroll in coverage.

If the enrollment form is received after the 31-day enrollment period, your request for supplemental coverage will be subject to evidence of insurability requirements (coverage may be approved or denied based on these requirements).  

Certain evidence of insurability provisions may be waived if you add or increase your supplemental coverage during the District’s Open Enrollment period (October 15 – November 15 of each year).  See the Plan Certificate for details.

Beneficiary and Coverage Changes

It is important to identify your beneficiaries for life insurance, but your beneficiaries can change over time.  To make changes to your beneficiaries, or to apply for additional life insurance, use the User Guide under Life Insurance Resources on this page.

Have Questions?  Contact the Benefits Helpdesk at benefits@madison.k12.wi.us or at 608-663-1692.