What would happen to your family if you were no longer in the picture?
Choice Benefits offers you the security of knowing your family has financial protection in the event of your death. Life insurance is part of any financial protection strategy and Choice Benefits gives you the opportunity to tailor your choices to meet your needs with a variety of different levels of coverage.
Here are some key points to remember about the life insurance benefit options:
The Internal Revenue Service (IRS) considers the value of any life insurance over $50,000 to be a form of income called imputed income, and the employee must pay income taxes on this amount. If you want the maximum life insurance coverage available without paying imputed income taxes, employees can choose $50,000 in coverage. If an employee chooses $5,000 in coverage, he/she receives the difference between the Life Plans Credit and the life insurance cost as taxable income in their paycheck.
Certain limits apply to these plans, including:
Do you know who would receive your life insurance or personal accident insurance benefit in the event of your death? Does the Human Resources Department know who that person is?
Be sure to name a beneficiary when you complete your enrollment online to make sure benefits are paid to the people you want to receive them.
What would happen if your spouse or children were no longer in the picture?
The university offers life insurance for your spouse or domestic partner, and/or your children. If your family member dies while covered by one of these plans, the plan pays you a benefit.
How It Works
The employee pays the full cost of family life insurance with after-tax dollars through payroll deductions. Amounts for spouse/domestic partners are $5,000, $10,000, or $25,000. Children can be covered for $2,000, $5,000, or $10,000.
Any additional or increased family coverage elected begins on the date of the qualified status change or the next plan year if elected during annual enrollment unless the spouse, domestic partner, or dependent is hospitalized or confined. If the eligible spouse, domestic partner, or dependent child is hospitalized or confined due to illness or disease, coverage will begin on the date he/she is no longer hospitalized or confined.
If the covered family member is terminally ill and life expectancy is less than 12 months, employees may apply for up to 100% of their individual coverage one time as an Accelerated Life Benefit. The death benefit will be reduced by the Accelerated Life Benefit paid. If 100% of the covered family member's coverage is taken as an accelerated benefit, his/her coverage ends.
The employee is the beneficiary of this coverage. Survivor support and financial counseling services from PricewaterhouseCoopers LLC are available to you for 12 months at no additional cost.
Certain limitations apply to these plans including:
Accidents happen....are you covered?
Personal Accident Insurance provides you or your family with a benefit if a covered person dies as the result of an accident. This insurance also pays a partial benefit for the loss of a limb or eyesight as a result of an accident.
Employees may select single coverage or family coverage for his/her eligible family members. If family coverage is selected, the employee is insured for the full amount of the family coverage option. The employee's spouse or domestic partner's coverage equals 50 percent of the coverage and each child's coverage equals 10 percent of the coverage.
If an employee elects the $100,000 employee and family option, the employee's coverage equals $100,000, the spouse's coverage equals $50,000, and each child has $10,000 in coverage.
Under family coverage, personal accident insurance also pays an education benefit if the employee dies. For each dependent currently in college or who enrolls as a full-time student at an accredited post secondary education institution within one (1) year of the employee's death, the plan will pay part of certain education costs for up to four (4) years. For the employee's spouse or domestic partner, the plan will pay for job training needed to earn a living. Job training expenses must be incurred within 30 months after the employee's death. The maximum benefit is $3,000.
Seat Belt and Airbag Coverage
The plan will pay an additional benefit in the event an insured dies as the result of a covered accident while properly wearing a seat belt. An additional accidental death benefit is also ayable if the employee was protected by an airbag.
You pay the full cost of this coverage with after-tax dollars. The cost of Personal Accident Insurance is $0.017 per $1,000 per month for employee only coverage and $0.025 per $1,000 per month for employee and family coverage.
Certain limitations apply to these plans including:
Keep in Mind
The personal accident insurance plan also pays benefits for certain injuries resulting from an accident.
|Type of Loss Due to an Accident||Plan Coverage|
|Death||The full benefit|
|Both hands or both feet||The full benefit|
|One hand and one foot||The full benefit|
|Sight of both eyes||The full benefit|
|Sight of one eye or one limb||The full benefit|
|One hand||One half of the full benefit|
|One foot||One half of the full benefit|
|Sight of one eye||One half of the full benefit|