# Life Insurance

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.

## 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.

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 will be payable. ## 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. 1. 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). 2. 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. 3. 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.

If you wish to change your beneficiary, please initiate the change in Workday by navigating to the Benefits section of your profile.  A form will be sent to you to complete via Workday as a wet signature is required for all beneficiary changes.

1flat a·mount (noun): to assign a specific and unchanging dollar value from your life insurance to a beneficiary following your death.