The life insurance plan provides Members with life insurance and offers optional spouse and dependent life insurance, optional additional life insurance, and optional accidental death and dismemberment insurance.  

For more details, see the Benefit Guide located on the Constituency Office Portal. The applicable forms are available on the Constituency Office Portal – Payroll and Hiring.

Employee Basic Life Insurance 

Employee Basic Life Insurance is mandatory. No enrolment is necessary; every Member is automatically covered following election to the Legislative Assembly

Coverage 

Amount of life insurance coverage is based on 3 times the amount of annual salary, or the employer-paid minimum coverage of $100,000, whichever is greater.  

Coverage includes: basic life insurance; benefits for accidental dismemberment and loss of sight; advance payment for terminal illness; funeral advance. 

There is no cash surrender value for group life insurance. 

Payment and Rates 

The premium for the first $100,000 of insurance coverage is employer paid ($16.00 per month based on 2020 rates); the employer paid portion is a taxable benefit. Member-paid monthly premium is 16 cents per thousand dollars for coverage above $100,000. 

Designating a Beneficiary 

In the event of the Member’s death while in office, the plan pays a benefit to a named beneficiary. The Group Life Beneficiary Designation Form must be submitted to Payroll Services. If a beneficiary is not designated by completing the form, the benefit will be paid to the Member’s estate. If there are any changes to a designation (for example, change of beneficiary, address, surname), please complete a new form and submit it to Payroll Services. 

The group life benefit payment is non-taxable when paid to a designated beneficiary. A benefit payment made to an estate becomes part of the proceeds of the estate for tax purposes. 

Optional Family Funeral Benefit (Coverage for Spouse and Dependents) 

Coverage provides life insurance in the event of the death of a spouse or dependent payable to the Member under the age of 65. 

Coverage: Life insurance in the amount of $10,000 for spouse and $5,000 per dependent child. 

The beneficiary of this coverage is the Member. Members must apply for coverage within 90 days or the earlier of: election as a Member; or acquiring a first spouse or dependent.  

This coverage also applies to common-law relationships; however, a statutory declaration will be required in the event of a claim. Return the Optional Family Funeral Benefit Form to Payroll Services for certification and processing. 

Premium: $2.21 per month 

Group Life Insurance coverage in these circumstances begins: 

  • The day a Member is eligible, if application is made before a Member is eligible; or 
  • The day the application is signed, if signed during the 90-day enrolment period; or 
  • The date the application is approved by Canada Life Assurance Company, if applied for after the 90-day enrolment period. Evidence of insurability and health will be required. 

To initiate a claim or for more information on the limitations and specifications related to these additional benefits, please contact Payroll Services at payrolloffice@leg.bc.ca or 250-387-5532.  

Optional Life Insurance 

Additional life insurance is available if Members want to supplement their employee basic life insurance or if Members wish to insure any of their dependents. For this insurance, Members must complete the Application for Optional Life Insurance Form. 

Employee optional life insurance 

This optional plan provides employee life insurance in addition to basic life insurance. Members may select insurance in units of $25,000 up to a maximum of $1 million. The beneficiary of this coverage is the same as designated for basic life insurance, unless otherwise specified. 

Spouse optional life insurance benefit 

This optional plan provides life insurance for Member’s spouse. Members may select insurance in units of $25,000 up to a maximum of $500,000. Members are the beneficiary of the life insurance. 

Child optional life insurance benefit 

This optional plan provides life insurance for any/all dependent children that Members choose to cover. Evidence of insurability is not required, and Members may select insurance in units of $5,000 up to a maximum of $20,000. Members are the beneficiary of the life insurance. 

Enrolment 

There are two opportunities for Members to apply or update their optional life insurance plans after their initial enrolment (which will require evidence of insurability): 

  1. Once a year, for the change to be effective April 1 of that year, applications must be received by the end of the second week of March.  
  2. Eligible life events, as defined below, allow Members to make changes within 60 days of the event. 
    • Marriage or entering a common-law relationship;  
    • Divorce, separation or the end of a common-law relationship; 
    • Birth or adoption of a child; 
    • Loss of a child’s status as a dependent (marriage, age limit, no longer a student); 
    • Change in a child’s eligibility that allows coverage under the program; and 
    • When a spouse gains or loses benefits. 

Optional Accidental Death and Dismemberment Insurance (AD&D) 

AD&D insurance is available to supplement Members’ basic life insurance coverage and to cover any of their dependents as a result of accidental death or the loss of use of limbs, sight, speech or hearing. This benefit does not provide coverage due to illness. Coverage is provided 24 hours a day, 7 days a week. Evidence of insurability is not required. To opt in for this insurance, Members must complete the Application for Optional AD&D Coverage Form. 

Three plans are available: 

  1. Employee optional AD&DMembers may select insurance in units of $25,000 up to a maximum of $500,000. 
  2. Spouse optional AD&DMembers may select insurance in units of $25,000 up to a maximum of $500,000. 
  3. Child optional AD&DMembers may select insurance in units of $10,000 up to a maximum of $250,000. 

The beneficiary of this coverage is:  

  • In the event of a Member’s death: the same as designated for basic life insurance unless otherwise specified. 
  • In the event of spouse’s or child’s death: the Member. 
  • In the event of eligible injury to the Member: the Member. 
  • In the event of eligible injury to spouse or child: the Member. 

The amount of AD&D insurance purchased is called the principal sum. For example, if two units of $25,000 are purchased for a Member, their principal sum is $50,000. If three units of $25,000 are purchased for a Member’s spouse, their spouse’s principal sum is $75,000.  

Depending on the loss a Member, their spouse or their child suffers as a result of an accident, a percentage of the applicable principal sum is payable. 

Group Aviation Accident Insurance 

Group aviation accident insurance provides protection for Members when traveling by air on parliamentary business, including limited ground travel to and from the airport. This insurance is provided in addition to group life coverage where applicable. 

Coverage 

Type of Accident  Group 1 
(Speaker and Executive Council Members) 
Group 2 
(MLAs – Private Members) 
Loss of Life  $200,000  $125,000 
Dismemberment or Loss of Sight  $200,000  $125,000 
Permanent or Total Disability  $200,000  $125,000 
Blanket Medical  $2,500  $2,500 

 

The combined limit for all Members as a result of a single accident is $10 million. For example, if a single accident involving several insured individuals occurred, the amount payable to each beneficiary would be pro-rated between the number of Members and the group to which they belonged (see table above). 

Premiums  

The Legislative Assembly pays the full premium for this benefit for all eligible Members. 

Beneficiary  

Any benefit payable under the policy will be paid to the beneficiary designated on file at the time of death, under the group life insurance plan. 

If a Member is not covered by group life insurance, or no designation has been made, the benefit will be paid to the Member’s estate. 

Exceptions  

The policy does not cover Members piloting an aircraft. 

Expiry  

Group aviation accident insurance coverage will end when a Member’s term of office ends.