Life Insurance for Retirees
The Texas Employees Group Benefits Program (GBP) offers three types of life insurance for retirees: Basic Term Life Insurance, Optional Term Life Insurance and Retiree Fixed Optional Life Insurance. Retirees are eligible for Basic Term Life Insurance when enrolled in a GBP health plan and only one of the optional life plans.
Plan Benefits
- Basic Term Life Insurance pays $2,500 to your beneficiary upon your death.
- Optional Term Life Insurance provides additional coverage — up to two times your annual salary when you retired (Election 1 or 2). Maximum coverage is $400,000. The monthly premium is based on your coverage election, your salary and your age. Coverage begins to decrease when you reach age 70.
- Retiree Fixed Optional Life Insurance pays $10,000 to your beneficiary upon your death and has a set monthly premium.
All life insurance participants have access to the Lifestyle value-added benefits, excluding travel assistance.
Eligibility and Enrollment
- Every retiree enrolled in a GBP health plan is automatically enrolled in Basic Term Life Insurance.
- If you have Optional Term Life Insurance at the time you retire, you are eligible to continue it at Election 1 or 2. If you have Election 3 or 4 at the time of retirement, your coverage automatically will be changed to Election 2, but you can choose Election 1 or $10,000 Fixed Optional Life Insurance. You do not need to provide evidence of insurability (EOI) to continue coverage when you retire.
- If you do not have Optional Term Life Insurance when you retire, you can apply for $10,000 Fixed Optional Life Insurance through EOI within the first 31 days of retirement, during your annual enrollment period or if you have a qualifying life event.