Life Insurance Administrative Instruction
The Under-Secretary-General for Management, pursuant to section
4.2 of Secretary-General's bulletin ST/SGB/1997/1 and for the purpose
of defining the conditions governing the provision of life insurance
coverage under staff regulation 6.2, promulgates the following:
1.1 A group life insurance plan ("plan") is offered as
a part of the scheme of social security for the staff which the
Secretary-General is required to establish under staff regulation
6.2. The underwriter of the plan is the Aetna Life Insurance Company
of Hartford, Connecticut, United States of America ("insurance
company"). The policyholder is the United Nations.
1.2 The plan is financed solely from the contributions of participating
staff members. No subsidy is paid by the Organization.
1.3 Participation in the plan is voluntary for all eligible staff.
A staff member may withdraw from the plan at any time. The plan
provides term insurance coverage only, and has no cash value at
the time of withdrawal.
Eligibility and enrolment in the plan
2.1 All staff members who receive a letter of appointment for six
months or more and who have received medical clearance upon appointment
will be eligible to participate in the plan.
2.2 Enrolment in the plan is automatic for eligible staff members
who apply for life insurance coverage under the plan, on the appropriate
form, within 60 days of signing the qualifying letter of appointment.
They will be covered from the effective date of the letter of appointment.
2.3 Enrolment in the plan for eligible staff members who apply more
than 60 days after signing the qualifying letter of appointment
is conditional on the provision by the staff member at the time
of application, on a special form for the purpose, of evidence of
insurability satisfactory to the insurance company.
2.4 The insurance company, which reserves the right to reject any
application by a staff member who applies after 60 days, may require
the applicant to undergo a medical examination at the applicant's
own expense. Such staff members, whose applications are accepted,
will be covered from the date on which the insurance company gives
its written consent.
Benefits and premiums
3.1 The insurance coverage for eligible staff members consists
(a) A principal sum, payable in the event of death from any cause
at any time or place; and
(b) An additional sum, payable in the event of accidental death
or dismemberment, subject to certain conditions.
3.2 The benefits and principal provisions of the policy are described
more fully in an information circular.
3.3 Monthly premiums are expressed as a percentage of pensionable
remuneration and benefits are expressed as a multiple of pensionable
3.4 The premiums and benefits are receivable and payable by the
insurance company in United States dollars.
3.5 The premiums for the plan shall be paid in full by the staff
member participating in the plan. The premiums shall be paid by
monthly payroll deduction.
3.6 The premium rate is determined by the insurance company, in
consultation with the Organization, and will be announced periodically
in an information circular.
Level of coverage and premiums
Staff under 62 years of age who enrol in the plan
4.1 The level of coverage, and the corresponding premium, for staff
members under 62 years of age who enrol in the plan is based on
the staff member's pensionable remuneration, subject to a maximum.
4.2 The maximum coverage is reduced for all such participants who
continue in service after the month in which they reach age 62.
Staff enrolling at 62 years of age or older
4.3 The level of coverage, and the corresponding premium, for staff
members enrolling at 62 years of age or older is limited to a fixed
Staff paid in currencies other than United States dollars
4.4 The level of coverage, and the corresponding premium, for staff
members at duty stations away from Headquarters who are paid in
currencies other than the United States dollar is based on their
pensionable remuneration in the local currency.
4.5 The premiums payable by such staff members are remitted to the
insurance company in United States dollars, using the United Nations
official rate of exchange.
4.6 Benefits payable by the insurance company will be the equivalent
in United States dollars of the entitlement of the participant in
local currency converted at the United Nations official rate of
exchange, in effect on the date of the event giving rise to the
Adjustment of coverage level
5.1 The level of coverage and the corresponding premium for each
participating staff member will be automatically adjusted to take
into account changes in the pensionable remuneration of the staff
(a) The pensionable remuneration of the staff member already entitles
him or her to the maximum coverage available; or
(b) The staff member has executed a waiver of automatic increase
1 January 2001.
5.2 A participant not wishing to have the increased life insurance
coverage afforded by the requisite increase in pensionable remuneration
must cancel his or her coverage under the plan.
Reapplication after cancellation of coverage
6.1 A staff member who has cancelled coverage may reapply at a
later date for coverage based on his or her pensionable remuneration
at that time. Enrolment in the plan at that level is conditional
on the provision by the staff member at the time of application,
on a special form for the purpose, of evidence of insurability satisfactory
to the insurance company.
6.2 The insurance company, which reserves the right to reject any
such application, may require the applicant to undergo a medical
examination at the applicant's own expense. Staff members whose
applications are accepted shall be covered, at the level warranted
by their pensionable remuneration, from the date on which the insurance
company gives its written consent.
Designation of beneficiaries
7.1 Since life insurance benefits are payable to the participant's
beneficiary or beneficiaries, it is most important for each participant
in the plan to designate the person or persons to whom the participant
wishes the benefit to be paid. Special forms are available for the
designation of beneficiaries.
7.2 Only the most recent, properly executed form for the designation
of beneficiaries is recognized by the insurance company for the
payment of benefits. It is the responsibility of the staff member
or former staff member to make sure that the proper person or persons
are designated, particularly after death, divorce or other change
in the relationship between the person or persons previously designated
and the staff member or former staff member.
7.3 Changes in the designation of beneficiaries may be made at any
Staff members who are granted special leave on partial pay or
without pay may continue to participate in the plan by paying the
premium in advance. Staff members who choose not to retain coverage
during a period of special leave without pay of more than two months'
duration may re-enrol in the plan only on the basis of satisfactory
evidence of insurability.
Free life insurance coverage after separation from service
9.1 Participants in the plan at the time of separation from service
who have participated in the plan for at least 10 years continue
to receive life insurance coverage under certain conditions, which
are set out below, without further payment of premiums. The additional
coverage for accidental death or dismemberment, however, ceases
after separation from service.
Staff under 55 years of age who separate from service
9.2 Participants who separate from service prior to the age of
55 receive one year's free life insurance coverage, at the level
of their coverage on the date of separation, for each completed
10-year period of contributory participation.
9.3 At the end of this period of free coverage, the life insurance
coverage ceases unless the participant:
(a) Again becomes a staff member and renews his or her participation
in the plan, if eligible; or
(b) Makes arrangements with the insurance company to continue coverage
under the conversion privilege (see sect. 10 below).
Staff who separate from service at 55 years of age or older
9.4 Participants who separate from service at the age of 55 or
older receive free life insurance coverage equal to a percentage
of their coverage on the date of separation. The percentage is reduced
as the participant grows older, subject to a minimum and a maximum.
Staff whose appointments are terminated for reasons of health
9.5 Participants in the plan whose appointments are terminated
for reasons of health in accordance with staff regulation 9.1 (a)
continue to receive life insurance coverage equal to their coverage
on the date of separation up to age 61, and reduced amounts thereafter,
without further payment of premiums. The additional coverage for
accidental death or dismemberment, however, ceases at that time.
Free life insurance coverage for those who have signed a waiver
9.6 In the case of a participant, who, having signed a waiver of
automatic increase in coverage prior to 1 January 2001, was not
insured for the full amount to which he or she was otherwise entitled,
the free life insurance coverage will be based on the level of coverage
on the date of separation from service.
10.1 All staff members who, at the time of their separation from
service, are participating in the plan may make arrangements with
the insurance company to convert to an individual policy under conditions
established by the insurance company, without having to produce
further evidence of insurability.
10.2 The participant is then solely responsible for paying and remitting
the premiums to the insurance company.
11.1 The present instruction shall enter into force on 1 October
11.2 Administrative instruction ST/AI/2000/18 of 21 December 2000,
entitled "Life insurance", is hereby abolished.