HealthChoice Life Insurance

Life Insurance Checklist
Basic and Supplemental Life
Life Insurance Application
Employee Responsibilities
Beneficiary Designation
Dependent Life
Life Insurance Claims
More Information About Life Insurance

Life Insurance Checklist 

Obtain the Life Insurance Application.
Complete the top portion of the form.
Give the employee the form, along with a Beneficiary Designation Form, to complete and mail to OSEEGIB.

If the employee is approved or disapproved for additional life insurance, you will be notified by mail. Do not deduct any extra premiums until this notification is received.

Basic and Supplemental Life 

The HealthChoice Life Insurance Plan provides group term life insurance that does not accrue cash value. Basic Life is the first $20,000 of life insurance available to employees. Supplemental Life offers additional amounts of life insurance that can be purchased in $20,000 units.

A new employee, or an employee who has completed an employer probationary period, can elect life insurance coverage at the time of initial enrollment or within 30 days of their eligibility date. Only employees who are enrolled in one of the health plans offered through OSEEGIB, or those who are enrolled in other group health insurance are eligible to elect life insurance coverage.*

When enrolling in Basic Life, a new employee can also elect Supplemental Life in an amount up to two times their annual salary without submitting a Life Insurance Application. This amount is known as Guaranteed Issue and it is available only to new employees. A Life Insurance Application is required for Supplemental Life coverage greater than two times an employee’s annual salary.  (See Life Insurance Application)

An employee can request Supplemental Life coverage in $20,000 units, up to a maximum of $500,000.

*A new employee can elect stand-alone life coverage at initial enrollment by providing proof of other verifiable group health coverage. That coverage must remain continuous.

A current employee can continue stand-alone life coverage after dropping health insurance through OSEEGIB due to gaining other group health insurance. The employee must provide proof of other group health coverage to you. OSEEGIB may request this proof at any time.

A Life Insurance Application is required during the annual Option Period for employees who want to elect or increase life insurance. These changes become effective the first of the following calendar year or following approval of the application, whichever is later. The Life Insurance Application must be received by the Option Period deadline established by OSEEGIB.

Basic Life and the first $20,000 of Supplemental Life include Accidental Death and Dismemberment (AD&D) coverage. AD&D coverage is available only to current employees. AD&D pays additional benefits in the event of an accidental death or the loss of a limb or the sight of an eye due to an accident.

Note: In the event of an employee’s death, their surviving dependents have a right to continue coverage through OSEEGIB.  (See Eligibility and Enrollment)

AD&D Benefit Chart

Life Insurance Application 

The Life Insurance Application includes a questionnaire which is used to determine an employee’s medical fitness and insurability when applying for HealthChoice Life Insurance.

A Life Insurance Application is required if an employee wants to enroll in:

• An amount greater than two times their annual salary (Guaranteed Issue) at initial enrollment
• Life insurance during the annual Option Period

During the annual Option Period, a Life Insurance Application is not required if an employee wants to:

• Keep their current amount of life insurance
• Decrease or drop their current amount of life insurance
• Add Dependent Life

Employee Responsibilities 

It is the employee’s responsibility to ensure that the Life Insurance Application is accurate, complete, signed, dated, and returned by the deadline to:

OSEEGIB/HCMD
P.O. Box 57830
Oklahoma City, OK 73157-7830

If preferred, the form can be faxed to 1-405-717-8997.

At the employee's request, you can mail the Life Insurance Application to OSEEGIB; however, do not read or make copies of the application as it contains personal health information.

When additional medical information is needed to process an application, the employee must make arrangements with their physician’s office to send the requested information before the deadline. The employee is responsible for any charges related to obtaining medical records.

If an employee incorrectly indicates a medical condition on the Life Insurance Application, their physician must confirm in writing that the employee does not have the condition.

Beneficiary Designation 

An employee should name a beneficiary when they enroll in life insurance coverage.

A beneficiary can be one person, several people, an estate, charitable organization, foundation, or anyone who can provide OSEEGIB a legal receipt for life insurance proceeds. If no beneficiary is named, life proceeds are paid to the employee’s estate.

Note: The employee is always the beneficiary of Dependent Life proceeds.

Primary Beneficiary refers to the party who is named to receive life proceeds upon an insured employee’s death. If more than one primary beneficiary is designated, life proceeds are shared equally unless other instructions are provided on the Beneficiary Designation Form.

Contingent Beneficiary refers to an alternate beneficiary designated by the employee. This party receives life proceeds only if all primary beneficiaries die prior to or simultaneously with the employee.

When a minor is named as a beneficiary and life proceeds exceed $10,000, a court must appoint a guardian for the minor before life proceeds can be paid; however, if life proceeds are $10,000 or less, a claim can be made by the adult responsible for the minor without the necessity of obtaining legal guardianship.

It is important that an employee review their beneficiary designation when there are changes in their family or financial status.

An employee’s beneficiary designation can be updated at any time. Payment of life proceeds is based on the most recent Beneficiary Designation Form on file with OSEEGIB.

Employees can download a Beneficiary Designation Form from the OSEEGIB website or call OSEEGIB Member Services to request a form be mailed to them.

Dependent Life 

Dependent Life insurance is available to any employee who is enrolled in Basic Life. There are three levels of Dependent Life insurance. A Life Insurance Application is NOT required to elect Dependent Life.
 

*The life benefit for children ages six months or younger is $1,000; no benefits are payable for stillborn children.

Dependent Life insurance covers all eligible dependents. The premium is the same whether one or several dependents are covered; however, all covered dependents must be listed on the employee’s Insurance Enrollment Form or Insurance Change Form.

A new employee can elect Dependent Life coverage at the time of initial enrollment or within 30 days of their employment date.

A current employee can enroll in or change the level of Dependent Life coverage during the annual Option Period or within 30 days of a qualifying event.

Proceeds for Dependent Life insurance coverage are always paid to the employee. Dependent Life does not include AD&D benefits.

Life Insurance Claims 

A completed Life Insurance Claim Form and an original or certified copy of the death certificate are required to file a life insurance claim. Additional documentation may be required. For additional information, the Life Insurance Benefits brochure is available on the IC website.

The steps for filing a life insurance claim are:

• A Life Insurance Claim Form can be requested from HP Administrative Services, LLC or downloaded from the IC website.  (See Contact Information for Life Insurance)
• The “Signature(s) of Beneficiary(ies)” section at the bottom of the claim form must be completed by the named beneficiaries. Once the form is completed, it must be returned to HP Administrative Services, LLC.  (See Contact Information for Life Insurance)
• An original or certified copy of the death certificate must be included with the claim form.

Note: If any part of the form is incomplete or additional information is required, HP Administrative Services, LLC contacts the beneficiaries by mail.

In the event of the death of an employee, life proceeds are paid to the beneficiaries listed on the most recent Beneficiary Designation Form on file with OSEEGIB. If no beneficiary is named, proceeds are paid to the employee’s estate.

In the event of the death of a covered dependent, life proceeds are always paid to the employee.

Note: There are no benefits payable during the first 24 months of coverage for a death resulting from suicide. Other limitations may apply. For more information, refer to the Life Insurance Handbook.

After receipt of the Life Insurance Claim Form and death certificate, a life insurance claim is processed in approximately two weeks provided there are no questions about the claim.

If an employee or dependent dies at the first of the month before premiums are paid, any insurance premiums due at the time of the insured’s death are withheld from life insurance proceeds.

A beneficiary can assign all or a portion of the life insurance proceeds to a funeral home to help pay for burial costs.

More Information About Life Insurance 

The Life Insurance Application has sections that must be completed by you, and then the employee must complete their sections. Make sure your part of the application is complete before giving it to the employee to avoid a delay or denial of the application. The following processes must be completed:

• Download a current copy of the Life Insurance Application from the OSEEGIB website. No other versions will be accepted.
• Complete the IC sections of the Life Insurance Application and sign the salary verification information at the top of page one; otherwise, the application cannot be processed.
• The “Coverage Being Requested” section must include the amount of coverage the employee is requesting, not the premium cost.
• The Life Insurance Application must be completed, signed, and dated by the employee and submitted to OSEEGIB by the deadline.
• The original Life Insurance Application can be mailed or faxed. The employee should keep a copy for their records.

If an application is incomplete or requires corrections, it is returned to the employee. The employee must return the application within the allowed time frame or it is denied.

If the application is approved, notification of approval is sent directly to you and the employee. Do not deduct premiums for life insurance until you receive this approval.

If the application is denied, only notice of the denial is sent to you. A denial letter including the reasons for the denial is sent directly to the employee.

Contact Information for Life Insurance