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Life

Group Employee & Dependent Life Insurance Certificate
Review & Update Beneficiaries: Log in to HR Self-Service, choose Benefits, then Beneficiary.

Employee State Insurance Options
As an active employee of the State of Michigan, you may elect either the Traditional or Reduced Benefit Life Insurance Plan administered by Minnesota Life:

  • The State will cover the full premium cost of this plan. No payroll deductions are required. This is the traditional group term life insurance plan that pays your designated beneficiary(ies) a non-taxable death benefit equal to two times (or 200%) your basic annual salary1 (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 benefit2). 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 ($150,000 for MSEA-represented employees) 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.

    1Basic annual salary is based on your basic hourly pay rate multiplied by 2,088 hours. 2This life insurance limit may not be applicable to employees who are covered by certain collective bargaining agreements.

  • The State will cover the full cost of this plan, and you will receive a bi-weekly rebate for being enrolled. This plan pays your designated beneficiary(ies) a non-taxable death benefit equal to 100% of your basic annual salary1 (rounded up to the next $1,000) but no more than $50,000 (the maximum benefit2). 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 rebate is determined based on the following calculation: Annual Salary multiplied by 2 (rounded up to the nearest thousandth), less $50,000 or the Annual Salary (whichever is lesser), then divide by 1,000 and multiply by .14.

    Upon retirement, your life insurance benefit is automatically reduced to 25% of your pre-retirement benefit. This plan also provides the same $100,000 duty death benefit as the traditional plan ($150,000 for MSEA-represented employees).

    1Basic annual salary is based on your basic hourly pay rate X 2,088 hours.
    2This life insurance limit may not be applicable to employees who are covered by certain collective bargaining agreements.

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

  • You have the option of enrolling your legal spouse and/or eligible children in one of the Dependent Life Insurance Plans. All plan premiums are paid by the employee via payroll deductions.

    • Option 1: Spouse $1,500 and/or Child(ren) $1,000 each
    • Option 2: Spouse $5,000 and/or Child(ren) $2,500 each
    • Option 3: Spouse $10,000 and/or Child(ren) $5,000 each
    • Option 4: Spouse $25,000 and/or Child(ren) $10,000 each
    • Option 5: Child(ren) Only $10,000 each
    • Option 6: Spouse $50,000 and/or Child(ren) $15,000 each
    • Option 7: Child(ren) Only $15,000 each

    Each of these plans will cover your unmarried children between the ages of 14 days and 23 years for whom you provide at least 50% of their support (even if they are no longer students).

    Coverages for a child who is documented as being incapacitated by a physical or mental impairment will continue at and beyond age 23, provided coverage does not terminate for any other reason. Carefully read information on Dependent Eligibility for more specific information.

    You will be the sole beneficiary of your dependent's life insurance. If you are also not living when a death benefit is payable, benefits will be paid to your legal spouse, if living; otherwise to your surviving children in equal shares; otherwise to the estate of the last survivor.

    Note: If you are a State employee married to another State employee/retiree, you are both covered as employees under a Life Insurance Plan: thus, you are not eligible to also be covered as a spouse under any of the Dependent Life options. Children can be covered by either parent, but not both.

  • 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 designate 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:

    1. First, to your spouse, if living
    2. Otherwise, equally to your natural and adopted child(ren)
    3. Otherwise, equally to your surviving parents
    4. Otherwise, equally to your brother(s) or sister(s)
    5. 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.

State Police Employees Only

  • On November 1, 2020, Reliance replaced Prudential as the Voluntary Life Insurance provider.

    The transition took effect November 1, 2020. Rates increased by 25%. Questions should be referred to MSP HR Office or Benefit Resource Group, Inc. at 810-735-6500.

    In addition to the Basic Life Insurance provided by the State of Michigan, you may purchase additional supplemental term life insurance for yourself and/or your family.

    The third party administrator is Reliance. Your cost of insurance will depend on your age and the amount of insurance you purchase.

    Open Enrollment for Reliance Voluntary Life Insurance

    During Benefits Open Enrollment, State Police employees will have the opportunity to enroll in the Reliance Voluntary Life Insurance program. Spouses and dependents can also be covered with this plan.

    Required documentation must be received by the MI HR Service Center by November 12, 2021 for the plan year starting January 1, 2022.

    As a participant you are entitled to continue your coverage at a preferred rate into retirement at a reduced amount.

    Forms:

    Information is also available on your State Police intranet website. Click the "Divisions/Districts" link then "Human Resources Division".