What is supplemental life insurance?
Life insurance provides a death benefit to a designated beneficiary (or beneficiaries) in the event of the insured person’s death. “Supplemental” life insurance is extra or additional life insurance that typically is purchased in addition to other life insurance (usually referred to as “basic” life insurance offered by your employer).
Who in my company would be eligible to enroll?
Eligible members would be:
- Full-Time Employees
Part-Time Employees (must be working 30+ hours and benefits-eligible)
- Unpaid Owners are not eligible for this benefit.
Is supplemental life insurance coverage restricted in some states?
There are no state restrictions.
What will my company be charged when offering supplemental life insurance?
Nothing. When offering supplemental life insurance through Justworks, the employee is responsible for the monthly premiums. There are no other fees associated.
The employee will be charged split premiums on the first and second payroll.
How do I purchase supplemental life insurance through Justworks?
If your employer offers supplemental life insurance, you’ll have 30 days to sign up from the day you complete your Justworks profile and are otherwise eligible under the terms and provisions of the insurance policy. We’ll send you emails to notify you of the opportunity and to remind you to sign up!
If you missed your opportunity to sign up but still wish to get coverage, you can do so by going through the Statement of Health process. Please see the section below for more details.
How much life insurance should I buy?
Since supplemental life insurance is a voluntary benefit, this is up to you! For supplemental life insurance through Justworks, the insurance carrier requires a minimum amount of $50,000, and you may purchase additional coverage in increments of $50,000, up to a maximum of $1,000,000, provided that any amount in excess of $150,000 is subject to satisfying the insurance carrier’s health underwriting requirements (more on this below).
When thinking in more detail about how much to buy, you may want to think about the value of your mortgage or other loans, and the cost of college for your children - the amount of the insurance policy can help cover these costs in the event of your death. You may also want to consider if an extended family member is currently or likely to be dependent on your future income.
For more in-depth information about the two supplemental life insurance policies that Justworks offer, please click on this Help Center article: Ancillary Benefits
How does pricing work?
Prices for both employee coverage and spouse coverage depend on the amount of coverage and the insured's age.
Pricing details will be available in your Justworks account - You > Benefits > Ancillary Benefits - when you have the opportunity to sign up.
How is supplemental life insurance billed?
Justworks bills for supplemental semimonthly. Your monthly cost will be split across the first and second paycheck of the month. If you’re on a semi-monthly payroll schedule, you will have a deduction for every paycheck. If you are on a biweekly or weekly payroll schedule, you will have a deduction for 24 paychecks out of the year.
Please note if there are 3 biweekly paydays in a given month, deductions will occur on the 1st paycheck of the month and on the 1st paycheck on/after the 15th of the month.
Statement of health (SOH)
Applying for higher amounts:
If you would like to purchase amounts of coverage over $150,000, you must submit a statement of health for each applicable insured person to MetLife. Higher amounts of coverage will only become available if the insured person satisfies MetLife’s health underwriting requirements.
The appropriate statements of health will be available to you in Justworks under Documents and will also be emailed to you when you sign up.
Send the statement of health form only to MetLife (SOHSubmissions@metlife.com) within two weeks of signing up.
Once MetLife has reviewed your statement of health, you will receive an email from MetLife with their decision. The approval or denial will be sent to you via email as well as updated in your Justworks account under the ancillary benefits tab within two weeks.
Applying for coverage outside of the enrollment period:
If you missed your enrollment period, you can still apply for coverage by submitting a statement of health. Please send the statement of health form to MetLife (SOHSubmissions@metlife.com). This process will not have a guaranteed amount for approval and you will be subject to all of MetLife's underwriting requirements.
Once MetLife has reviewed your statement of health, you will receive an email from MetLife with their decision. The approval or denial will be updated in your Justworks account within two weeks' time.
In some cases, you’ll be asked to submit an Attending Physician’s Statement (APS), or visit a medical professional for a paramedical exam. Most applicants will not need an APS or a paramedical exam, however, the need for one is often determined by age of the insured, answers on your SOH, and the amount of coverage that is requested. This visit will be arranged by MetLife at no cost to you.
Do I get to keep my coverage if I leave the company?
If you're no longer employed or your employer stops using Justworks and you wish to keep your coverage, you can do so by porting the coverage. You can simply get in touch with us to ask for a portability form to submit to MetLife, and you'll work directly with them to set up continuing your coverage.
When would the supplemental life insurance termination occur if the employee is terminated?
The supplemental life policy will terminate at the end of the employee's separation month.
What happens if I die?
Your designated beneficiary (or beneficiaries) will need to file a claim for death benefits with MetLife.
What if I don’t submit my beneficiary information?
If you do not designate a beneficiary (or beneficiaries), any death benefit will be paid to the applicable default beneficiary set forth in the life insurance policy. In order to avoid unintended consequences, it is highly recommended that you complete your beneficiary designation form.
In the event your company terminates its relationship with Justworks or an employee is no longer employed with your company, employees have the option to continue their Supplemental Life Basic Life & ADD insurance policies through portability or conversion. MetLife partners with Barnum Financial Group to help in this process.
Within 31 days of leaving Justworks, Barnum Financial Group will contact employees with information on how they can continue their existing policies if they so choose.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.