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The State will cover the full premium cost of this plan. No payroll deductions are required.

This is the traditional group life insurance plan that pays your designated beneficiary(ies) a non-taxable death benefit equal to 200% (or two times) your basic annual salary* (rounded up to the next $1,000). If you are enrolled in this plan you are insured for at least $10,000 (the plan's minimum benefit), but no more than $200,000 (the maximum benefit).** Upon retirement, your life insurance benefit is automatically reduced to 25% of your pre-retirement benefit.

The first $50,000 of your basic life insurance benefit is considered non-taxable income under federal tax law. However, the employer's cost of the benefit over $50,000 is taxable and the imputed income is added to your final W-2 earnings as required under Section 79 of the Internal Revenue Code.

In addition to the basic life insurance benefit, this plan will also pay your beneficiary a $100,000 duty death benefit if your death is caused by an accidental personal injury arising out of (or in the course of) your employment with the State of Michigan. Duty death benefits are not payable for illness-related death or if death occurs while you are traveling to and from work, unless you are in official travel status.

Reminder: Periodically review and, if necessary, update your life insurance beneficiary designation(s).  Beneficiary designations can be entered in MI HR Self-Service.

The State will cover the full cost of this plan, and you will receive a biweekly cash refund for being enrolled.

This plan pays your designated beneficiary(ies) a non-taxable death benefit equal to 100% of your basic annual salary* (rounded up to the next $1,000) but no more than $50,000 (the maximum benefit). You will be insured for at least $10,000 (the plan's minimum benefit).

Because the amount of your basic death benefit is $50,000 or less, the value of this employee benefit is completely non-taxable.

This plan also provides the same $100,000 duty death benefit as the traditional plan.

*Basic annual salary is based on your basic hourly pay rate X 2,088 hours.

**This life insurance limit may not be applicable to employees who are covered by certain collective bargaining agreements.

  LIFE INSURANCE BENEFICIARY DESIGNATION

You may designate as your life insurance beneficiary any person or institution except a funeral home.

A divorce automatically cancels a spouse as life insurance beneficiary.  If you want to keep your ex-spouse as a beneficiary, you must file a new Beneficiary Designation Form stating ex-spouse.

If you list more than one beneficiary, you must designate the percentage each beneficiary is to receive or it will be shared equally.

You can designated a contingent beneficiary who will receive your covered benefit in the event the named beneficiary(ies) die(s) before you.  If the named beneficiary dies before you, and no contingent beneficiary is named, your covered benefit amount will be paid as follows:

First, to your spouse, if living

Otherwise, equally to your natural and adopted child(ren)

Otherwise, equally to your surviving parents

Otherwise, equally to your brother(s) or sister(s)

Otherwise, to your estate

Accidental Duty Death Insurance

Accidental Duty Death Insurance is a benefit for all employees, if their death results from an accidental personal injury arising out of or in the course of state service and the death occurs within 180 days of the accident. 

Final Compensation Beneficiary Designation

The appointing authority shall pay the final wages due to you at the time of your death, in accordance with a primary and secondary beneficiary designated and filed by you under the regulations issued by the state personnel director.  In the absence of a valid beneficiary designation, the payment is made in accordance with the instruction of a court.  It is not mandatory that you file a final compensation beneficiary designation, however it is highly recommended.  Monies payable to the beneficiary shall include, but may not be limited to, earned compensation, payment for remaining leave balances due, longevity pay and reimbursement of expenses.

If you have questions on your life beneficiary designation or final compensation, you may contact the MI HR Service Center.