Core Term Life Insurance
Core term life insurance with accidental death and dismemberment (AD&D) coverage is a benefit provided by the University at no cost to eligible employees. The benefit is equal to your base annual pay. The value of insurance in excess of $50,000 is considered a taxable benefit. Those who earn less than $50,000 but purchase supplemental term life insurance may be subject to this tax if the combined total insurance exceeds $50,000. Employees have the option to “cap” their core term life insurance to $50,000 in order to avoid paying taxes. All eligible employees should receive the group life insurance benefits certificate when hired or on becoming eligible for the benefit.
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. Supplemental insurance may be purchased in amounts of $25,000, $50,000, $100,000 or $150,000. Newly hired or eligible employees electing $25,000 or $50,000 of supplemental insurance within 30 days of eligibility will not have to apply for medical approval. However, newly hired or eligible employees electing $100,000 or $150,000 of supplemental insurance must fill out the Statement of Health form and submit it to the benefits unit in the office of human resources.
Dependent Life Insurance
Dependent life insurance is offered in the amount of $10,000 for spouse and $5,000 for eligible dependent child(ren). Dependent children are eligible from age 15 days to 19 years (25 years if full-time student). Spouses may be insured to age 70.
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