Life insurance is one of the most important benefits available to you and offers a key source of financial protection and peace of mind.

McGill provides a basic benefit equal to 1x your salary. The plan also gives you the flexibility to purchase up to $1,000,000 in optional coverage.

Basic coverage

As an eligible employee, you are automatically covered under the McGill Basic Life Insurance Plan. The amount of coverage you receive depends on your age as outlined as follows:

"Salary" refers to your regular annualized salary.

Optional coverage

Depending on your personal circumstances, the basic coverage may provide all of the financial protection you need. If not, you may purchase optional coverage. You can decrease or cancel your coverage at any time by written request to the HR Service Centre. Again, the amount of coverage available under the optional plan depends on your age:

You pay the full cost of this optional coverage through regular payroll deduction. The amount you pay depends on your age and the amount of coverage you select.

Optional contribution rates

Below is a summary of current monthly rates per $1,000 worth of coverage under the Optional Life Insurance plan. The cost to you will depend on your age and your chosen amount of coverage. Each time you move to the next age group, your premium will be adjusted accordingly.

Monthly cost per $1,000 of insurance:

Things to consider

Before selecting your coverage under the optional plan, there are a few things you might want to consider:

• Are you currently supporting any dependents? A spouse? Children? Both? And to what degree do they depend on your income for financial security?
• Do you require coverage above the basic benefit provided by McGill?
• You will have to provide Evidence of Insurability for any requested increase in your Optional Life Insurance coverage.
• What other sources of income are available to your survivors: personal insurance policies, mortgage insurance, survivor pension benefits, personal savings, investments, real estate? Will this income be enough?

Proof of good health

You may buy up to $100,000 in coverage under the Optional Life Insurance Plan without providing evidence of good health, provided you buy your coverage within 60 days of first becoming eligible.

If you miss the 60-day window or you want optional coverage above $100,000, you will have to provide what is known in the industry as Evidence of Insurability (EOI) — that is, proof of good health. In simplest terms, you will be asked to complete a comprehensive questionnaire that outlines your medical history before your request for optional coverage is or can be approved. You will also be required to provide proof of good health if you apply for more optional coverage at a later date. The questionnaire Evidence of Insurability [.pdf] can be found here. Please note that Section 1 of the form must be completed by the employer. If you prefer, you may contact the HR Service Centre at 514-398-HRHR (4747) and request that a form be sent to you with the employer section already completed.

The insurance company will review the information. Depending on the responses you provide, the insurer may require you to undergo a physical examination or other medical tests (at the insurer's expense) before your application can be considered for approval.

Beneficiary designation

The life insurance benefit is paid out to your designated beneficiary in the event of your death. You can name one or more individuals to receive your Basic and Optional Life Insurance benefits. You can change your designation as long as you respect any laws governing the designation of beneficiaries.

Revocable vs Irrevocable beneficiary

• Revocable : You can change a revocable beneficiary designation at any time.
• Irrevocable : An irrevocable beneficiary designation can only be changed following a divorce, the death of the designated beneficiary, or if the designated beneficiary signs a waiver relinquishing their rights.

In Quebec, if you designate your spouse as beneficiary, the designation can only be changed with your spouse's consent - unless the designation form specifies that the designation is "revocable."

If you do not designate a beneficiary, all benefits will be paid to your Estate.

Important: We strongly recommend that you review your beneficiaries when a major life event occurs, such as the birth of a child or a change in your marital status.

If you become disabled

Your coverage under the Basic and Optional Life Insurance Plans will continue while you are eligible to receive benefits under the Long Term Disability (LTD) Plan. Your coverage level will be based on your salary when you became disabled.

In addition, the cost will be "waived" while you are receiving LTD benefits — that is, you will not be required to pay for your coverage. This waiver will end if you:

• are no longer totally disabled as defined in the LTD Plan
• fail to provide proof of the disability as required by the insurer
• fail to submit to an examination by a physician designated (and paid for) by the insurer
• reach age 65 (or retire, if earlier)
• are incarcerated for a criminal offence for which you are found guilty.

When coverage ends

Your coverage under the Basic and Optional Life Insurance Plans will end when:

• you leave McGill for whatever reason, other than retirement
• you no longer qualify as an eligible employee.

In addition, your coverage under the optional plan will end if you fail to make the necessary premium payments.

Converting your coverage

If you leave McGill before retirement, you may convert your coverage (to a combined maximum of $200,000) to an individual policy. And you may do so without providing proof of good health — provided you apply for coverage directly with the insurance carrier and pay the required premium within 31 days of your departure. Application forms are available from the HR Service Centre. If you die during this 31-day period, your beneficiary will receive the full value of your coverage, regardless of whether you apply for the conversion or not.

What the plan doesn't cover

If you commit suicide, while sane or insane, during the first 12 months of coverage under the Optional Life Insurance Plan, no benefit will be paid. Your beneficiary will receive a refund of your premium payments.