The special open enrollment period for long-term care and life insurance ends May 2. As you consider your needs, Paul Bursic, director of Benefit Services, provides a framework for estimating the amount of life insurance you should have.

Question: What is the difference between Cornell's basic life insurance policy and the Group Universal Life (GUL) Plan that is part of the open enrollment now?

Answer: You don't have to formally sign up for the Basic Life Insurance Plan to be covered, although you should, so that you can name your beneficiaries. For Basic Life you don't pay any premium. The GUL Plan is supplementary life insurance; if you choose to participate, you must actually enroll in the GUL Plan, and you pay the whole premium.

The Basic Life Insurance Plan offers coverage for one-half of your annual base pay, but limited to $50,000. The GUL Plan has several levels of coverage, expressed as multiples of your annual base pay. You pick the level of coverage you need from one to 10 times your salary, but not more than $2 million in coverage.

You can rely on the Basic Life Insurance benefit without answering any health-related questions. With the GUL Plan, you may need to answer health-related questions if you want more than five times your base pay in life insurance coverage or more than $1 million in coverage.

Q: What about life insurance for my family members?

A: You may cover your spouse, same-sex partner and children under the GUL Plan, even if you don't take out the coverage yourself. Spouses and same-sex partners may take up to $100,000 in coverage, and children can be covered up to $10,000 each.

Q: I've got lots of other needs right now. Why should I consider buying life insurance?

A: You may not need more than the Basic Life Insurance coverage. If your assets, including your present life insurance, are able to meet all your financial obligations right now if you were to die unexpectedly, then you probably don't need any more life insurance.

Most people find they could use some life insurance protection because their debts exceed their current assets. This is not unusual. You are counting on one of your major assets, your job-related income, to fund the debts over time. When you die unexpectedly, you run out of time. So, life insurance is really a substitute for future earnings that you would not be able to secure.

Q: Why are we faced with a decision now?

A: The insurance company has agreed to allow you to increase your insurance amount by the value of your salary without having to answer any health-related questions. But this opportunity will only last from April 21 to May 2. If you decide you need more coverage later in the year or at some other time in the future, chances are that you will need to answer the health-related questions, which may be a challenge.

So, now is a very good time to focus on your planning needs for the next five or 10 years. Remember -- the GUL Plan is keyed to your salary, so as your Cornell pay grows, so will your income-replacement coverage in life insurance.

Q: Can you explain more about the cash accumulation fund you mention in the booklet?

A: The cash accumulation feature of the GUL Plan is for people (1) who have discretionary income to save and can afford to set the money aside for the long term; (2) who want a tax-favored savings vehicle; and (3) who have a need for life insurance protection. If any of these three factors are missing from your profile, then you should look elsewhere for savings opportunities. The interest rates alone will not be attractive.

Q: What if I retire or leave the university?

A: You should always review your life insurance needs every year, especially if you leave the university and move to a new job or retire. Nevertheless, GUL Plan coverage is portable, although you pay somewhat higher rates once you leave your position at Cornell.

If you are preparing to retire, you should review your need for this coverage very carefully. Do you really need the extra assets that life insurance will provide in case you die early in retirement? The older you are, the more you pay for coverage in this plan and by the time you reach retirement age the premium becomes substantial.

It may seem like a guessing game, since the assumption is that you may die unexpectedly. So, make a conservative assumption that you die this month. Then look over the disposition of your estate. Do you need that life insurance plan to eliminate your debt? If family members will rely on a steady stream of income in the future, can your assets produce the amount they need? Maybe you won't feel comfortable getting rid of your life insurance protection for a few more years, but you can estimate your needs and anticipate the levels of coverage fairly accurately if you review your situation every year.

TIAA-CREF and Fidelity Investment counselors can help you estimate the income you can reasonably derive from your retirement savings. If income from your retirement plans is sufficient to your needs, then perhaps life insurance will not be needed. On the other hand, you may need a substantial sum of life insurance proceeds to meet the income goals you have set for your survivors.