Basic Term Life Insurance
Basic term life insurance with accidental death and dismemberment (AD&D) coverage is a benefit automatically provided by the University at no cost to eligible employees. The benefit is equal to one times your base annual pay. There are some tax consequences to employees with employer-funded insurance coverage over $50,000. As mandated by the IRS, coverage amounts in excess of $50,000 are subject to imputed income whereby the cost of the life insurance coverage in excess of $50,000 is subject to federal income and Social Security (FICA) taxes. The taxable amount is included in your W-2 and is calculated using an IRS age-based table. Employees have the option to “cap” their basic term life insurance at $50,000 in order to avoid paying taxes.
Supplemental Term Life Insurance
Employees have the option of choosing supplemental term life insurance for themselves. This optional life insurance does not include AD&D benefits. The cost of the supplemental term life insurance is based on your age and the amount of insurance. Supplemental insurance may be purchased in amounts of $25,000, $50,000, $100,000 or $150,000. Newly hired or eligible employees can elect up to $150,000 if under age 70 or $10,000 if age 70 or older within 31 days of eligibility without having to complete a Statement of Health form. Any amount requested in excess of the Guaranteed Issue (GI) level must fill out the Statement of Health form and submit it to Principal. During the annual enrollment period, a Statement of Health form is required to increase or add coverage.
Dependent Life Insurance
Dependent life insurance is offered in the amount of $10,000 for spouse and $5,000 for eligible dependent child(ren) from age six months until age 26. The coverage amount for newborns through age six-months is $1,000. Spouses covered under the group basic life insurance policy cannot also be covered as a dependent under the dependent life insurance benefit.
Did you know that your life insurance benefits include value added benefits such as will preparation services, grief counseling and discounts on funeral planning? For more information click on one of the topics listed in the Enrollment Resources section below.
This website provides a summary of the benefits available. The University reserves the right to modify, amend, suspend or terminate any plan at any time, and for any reason without prior notification. You will be notified of any changes to these plans and how they affect your benefits, if at all. The plans described on this website are governed by insurance contracts and plan documents, which are available for examination. We have attempted to make explanations of the plans on this website as accurate as possible. However, should there be a discrepancy between this website and the provisions of the insurance contracts or plan documents, the provisions of the insurance contracts or plan documents will govern. In addition, you should not rely on any oral descriptions of these plans, since the written descriptions in the insurance contracts and plan documents will always govern.