Life Insurance
When you choose to retire, your TMU-paid Life Insurance will cease but if you elect immediate commencement of your Pension upon retirement, you are eligible to continue coverage under the plan.
For retirees between 55 and 65, you are entitled to convert up to $200,000 of your lost insurance amount to an individual life insurance policy with Sun Life Financial.
If you choose to purchase Life Insurance when you retire prior to age 65, your life insurance coverage reduces and continues to reduce until you reach the age of 65 at which time it ceases.
You will have 31 days from your final day of employment at TMU to exercise this conversion privilege.
Eligibility
All OPSEU retirees under 65 who elect immediate commencement of their pension upon retirement are eligible to purchase coverage under the Basic Life Insurance Plan.
What is the cost for the Basic Life Insurance Plan?
The cost of the plan is fully paid for by the participating members. The current premium rate at May 1, 2023 is 0.107 per $1000 coverage.
What coverage does the Basic Life Insurance Plan provide?
You are eligible for a percentage of your pre-retirement coverage based on your age. The percentage reduces as you get older until you reach 65 when it expires.
For example, if you have $100,000 prior to retirement and retired at 55, your coverage amount would be $80,000 and when you turned 60, would reduce to $70,000.
The percentages are:
| Age | Percentage of pre-retirement coverage |
|---|---|
| 55-59 | 80% |
| 60-61 | 70% |
| 62 | 60% |
| 63 | 50% |
| 64 | 40% |
| 65 | 0% |
The maximum coverage is $400,000.
Can I convert the amount of life insurance I’m losing to a private plan?
Yes, each time your coverage decreases, you are entitled to convert the amount of insurance which you are losing at that time to an individual life policy with Sun Life regardless of the state of your health.
The premium rates will be determined by:
- your class of risk;
- age; and
- the type of policy selected.
This conversion privilege is subject to a maximum of $200,000.00. The associated premiums for this individual policy are your responsibility and TMU assumes no obligation to fund or subsidize the plan.
For details, please contact Sun Life at 1-800-SUNLIFE.
How do taxes apply to the Basic Life Insurance Plan?
Since you pay the premium, it is not a taxable benefit to you.
Who will receive my life insurance benefits?
Your chosen beneficiary(ies) will receive your benefit.
How do I name or change a beneficiary?
When you enrolled in your employee benefits plans, you selected a beneficiary to receive your life insurance benefit in the event of your death by filling out the Group Benefits Enrolment/Change form (external link) .
If you wish to name more than one beneficiary, you may do so, but you must indicate the percentage of the benefit that you want each beneficiary to receive and the percentages must add to 100%.
You may also elect to fill out section 6B: Appointing Contingent Beneficiaries to receive your benefits in the event that those named in section 6A are not alive at the time of your death.
You may change your beneficiary at any time by submitting a request to HR.
Note: If you do not nominate a beneficiary, the proceeds will be paid to your estate and therefore may be subject to estate taxes and creditors.
Are my survivors eligible for other benefits in addition to my life insurance?
In the event of your death, your surviving spouse and/or children will be offered extended health care and dental benefits for a period of six months only if the election was made for extended health care and dental benefits upon retirement.
In addition to TMU-sponsored life insurance benefits, your survivors may be entitled to payments from various government departments:
- If you have contributed to the Canada Pension Plan (CPP) for the required period, CPP may pay a lump-sum death benefit, together with a continuing monthly income for your spouse and/or children.
Exclusions and conditions
When does my coverage end?
Your Basic Life Insurance coverage remains in effect until you turn 65, or if you decide to cancel it before you turn 65.
Making Claims
What is the process for submitting a claim for life insurance?
In the event of your death, your beneficiary(ies) should submit a request to HR so that they can provide the necessary forms and instructions.
For additional details and to enrol in this coverage
Please submit a request to HR.
TMU reserves the right, at any time, to amend, change or discontinue any benefit coverage. If there is a question about coverage referred to in any portion of this benefits communication, the master contract from the insurer is the governing document.