Waterloo provides a group life insurance plan for employees who have at least a one-year appointment. This benefit provides you with insurance after your first full day of employment. Coverage is initially based on your annual salary at the time of initial employment, and is revised each time you have a change in your salary.
Your Coverage
The minimum amount of life insurance you must have is one (1) times your annual salary and this is referred to as basic life.
You may choose to have up to three (3) times your annual salary within 31 days of employment without evidence of insurability. If you choose to increase your coverage after 31 days of employment, evidence of insurability must be submitted to Sun Life Financial for approval before coverage can take effect. This coverage is referred to as additional basic life.
You may elect to increase your insurance to up to six (6) times your salary; however, this level of coverage requires that you submit evidence of insurability to Sun Life Financial for approval before coverage can take effect. This coverage is referred to as optional life.
All employee life insurance in excess of $600,000 is subject to evidence of insurability regardless of the date of application. The overall limit of employee life insurance is $2,000,000.
In addition to employee life insurance, if you have a spouse, you may choose spousal life insurance in multiples of your annual salary up to a maximum of $200,000. This coverage requires that your spouse submits evidence of insurability to Sun Life Financial for approval before coverage can take effect. This coverage is referred to as optional spousal life.
Optional and additional life insurance is not available beyond age 69.
University of Waterloo death benefits
If you die while in regular full-time service of the University of Waterloo, an amount equal to one month's base salary (no deductions) will be payable to your spouse or estate through continuation of payroll.
Beneficiary designation
You are the beneficiary for any approved optional spousal life coverage.
You should designate a beneficiary for your life insurance to avoid it being paid to your estate. If your estate is your beneficiary (either by designate or default), the life insurance will form part of your estate and be distributed in according to the terms of your will. The insurance proceeds will not be accessible until the Will has been probated by the courts and are subject to estate taxes.
When naming a beneficiary, it is important to consider the legal implications of your decision.
- If you name your spouse, or another relative, friend or charitable organization, the insurance monies will be paid directly to them if they are of legal age (18 years).
- If the named beneficiary is under legal age at the time of your death, proceeds will be held in trust by the Province of Ontario and the money, plus accrued interest, will be paid out when the child(ren) reach(es) 18 years. To avoid the additional administrative costs for this service and to ensure the monies are available in a timely manner, you should consider naming a trustee for the funds.
- You may wish to name a contingent beneficiary. This is the person(s) who will receive the insurance monies should your named beneficiary predeceases you or die at the same time as you.
You may wish to name a contingent beneficiary. This is the person(s) who will receive the insurance monies should your named beneficiary predeceases you or die at the same time as you.
| Employee's intention | Sample wording |
|---|---|
| Wish to name two people in equal shares | John Doe, my spouse, and Jane Doe, my sister in equal shares. |
| Wish to name a trustee for two minors (under age of 18 years) | John Doe, in trust for my son, James Smith and my daughter Jane Smith, during the years of their minority in equal shares. Note: you may wish to specify another age where the proceeds would be held by your Trustee e.g. "while they are under the age of 21 years." |
| Wish to name a contingent beneficiary | If John Doe predeceases me, benefits should be paid to my son, James Smith and my daughter Jane Smith in equal shares. |
| Wish to designate a flat amount1 to one beneficiary and the excess amount in equal shares (For this example, the employee has $250,000 in group life insurance) |
John Doe, my spouse in the amount of $150,000, my son Charlie and daughter Sara the remaining amount in equal shares. |
To assign or change your beneficiary designation, please initiate this change by logging into your Workday account. An original signed paper beneficiary designation form must also be sent to and received by Human Resources, located at East Campus 1. Once received and processed, the event in Workday will be completed and the change will take effect.
When Coverage Ends
If you continue working past the end of the year you turn age 69, your life insurance coverage reduces
to the retiree life insurance benefit with the premium paid by the University. Employees who resign from the University after age 55 with 10 or more years of continuous service in a permanent position and who elect an immediate pension option, qualify for the retiree life insurance ($6,300 flat amount as of January 1, 2023). Eligibility for post-retirement benefits is under review by the Pension and Benefits Committee and it is strongly advised that employees discuss eligibility for post-retirement benefits with Human Resources before completing the retirement intention on Workday. If an employee elects a deferred pension, eligibility for the retiree life benefit is forfeited.
Employees are eligible to convert all or a portion of their life insurance amount through Sun Life Financial within 31 days of coverage loss either due to age (i.e. reduction at age 69) or due to employment ending. The advantage of exercising this conversion option is that medical evidence of insurability is not required. Employees who are interested in this option can obtain the necessary forms by contacting HRHelp at hrhelp@uwaterloo.ca or by stopping by our office, located at East Campus 1.
1flat a·mount (noun): to assign a specific and unchanging dollar value from your life insurance to a beneficiary following your death.