When I retire from Missouri state employment, how much will my Optional Life Insurance premium increase? I have heard that it is expensive to keep after retirement because the rates increase. For example, if I increase my Optional Life Insurance to $30,000.00 this year with a $57.00 per month premium, how much will the cost per month increase?
I plan on retiring at age 67. I am 65 years old now. I think the Optional Life Insurance rates will increase as one ages? Is this correct? And, by how much will the rates increase?
Your premium for optional life insurance coverage through MOSERS* depends on your age (see table below) and the amount of coverage you have selected. Effective January 1, 2018, the monthly rate for a person age 65-69, will be $1.90 per $1,000 of coverage. For example, to have $30,000 in coverage: $1.90 x 30 = $57.00 monthly premium. At age 70 your premium will increase. (The rates for 2018 have been reduced. In 2017, it was $1.94 per $1,000 for ages 65-69.)
| MOSERS Optional Life Insurance Rates effective January 1, 2018. | |
| Age | Monthly Premium per $1,000 of Coverage |
| Under 35 | 0.08 |
| 35-39 | 0.10 |
| 40-44 | 0.16 |
| 45-49 | 0.24 |
| 50-54 | 0.43 |
| 55-59 | 0.76 |
| 60-64 | 1.18 |
| 65-69 | 1.90 |
| 70 & Over | 3.33 |
The month of October is the Annual Optional Life Insurance Review period for active employees who have optional life insurance through MOSERS. October is your window of opportunity to evaluate your optional life insurance coverage and decide if you would like to increase it (within the established guidelines) without proving insurability.
When you retire within 60 days of leaving state employment, you may elect to continue purchasing any amount of coverage from $1,000 up to a maximum of $60,000 (in increments of $500). However, the amount of coverage you carry into retirement cannot exceed the amount you carried while actively employed. You have 60 days from the end of the month in which you leave state employment to make an election to convert the remaining optional life insurance to an individual policy through Standard Insurance Company if you meet eligibility requirements.
You may reduce your optional life coverage amount after retirement; however, you may not increase your coverage amount after retirement. To calculate your monthly and annual premiums, there is a convenient Optional Life Insurance calculator on MOSERS’ website. Click on Members, then Calculators. (Note: It still uses rates for 2017 since the reduced rates will not go into effect until January 1, 2018.)
If you terminated optional life insurance coverage through MOSERS at retirement (or did not have any), it cannot be reinstated or added after retirement. Please see the Life Insurance Handbook for more information.
*MOSERS' life insurance is not available to employees of the Department of Conservation or state regional colleges/universities except for Lincoln University and State Technical College of Missouri.
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