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Life Insurance

Life insurance offers you the security of knowing your family has financial protection in the event of your death.  Life insurance is part of a good financial protection strategy.  UC’s life insurance options, offered through Securian, give you the opportunity to tailor your choices to meet your needs with a variety of different levels of coverage so you can Choose Well.

Puzzled about your UC Benefits?  Visit the Webinars and E-Learnings page for short videos that overview each benefit opportunity.

 

Plan Document

Benefits puzzle piece red circle

Eligibility

Eligibility is determined by type of appointment and FTE (full time equivalency).

  • Staff or visiting faculty: FTE of 75% or greater*
  • Faculty member (AAUP-represented or COM MED Faculty): FTE of 65% or greater

 * Post Docs and Interns are not eligible for life insurance.

Coverage Options

Eligible employees are automatically enrolled in Group Term Life Insurance in the amount of one times annual base pay.   UC pays the full cost of this benefit up to $50,000. 

Several other Employee Life Insurance options are available:

  • Employee may elect between two (2) to six (6) times annual base pay*
  • Employee may elect $50,000 or
  • Employee may elect $5,000

*The maximum Employee Life Insurance coverage available is $1,000,000.

Employees cannot waive Life Insurance coverage.  A minimum of $5,000 coverage is required.  This coverage is provided at no cost to the employee.

Increasing coverage:  Once you are enrolled in the Employee Life Insurance Plan, you can increase your coverage by one level at each future Annual Enrollment or if you have a qualifying family status change.

 

Naming a Beneficiary

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?

Make sure benefits are paid to the person(s) you want to receive them!  Name a beneficiary and keep it current.  Update or change your beneficiaries anytime through your ESS (Employee Self Service) account.  

 

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Costs

  • Cost for coverage: Based on your annual base pay and the coverage option you choose. Here is the Employee Contributions page.
  • Premium increases: If you choose coverage in excess of one times your annual base pay, the cost of your coverage will increase in five (5) year increments beginning at age 35. 
  • Limitations: As with all life insurance plans, limitations and exclusions apply.  Consult the policy found in “Other helpful Information” for details.
  • Waiver of Premium: A disabled employee may be eligible to have premiums waived if he/she pays for life insurance is disabled for at least nine months, is under age 60 and is insured under the Plan at time of disability.
    • If approved for waiver of premiums, an employee will not be responsible for any future premiums as long as he/she remains disabled, or until age 65 when the benefit ends, whichever is earlier.

Important Information & Features

  • Accelerated Life Benefit: If an employee becomes terminally ill and has 12 months or less to live, he/she may request early payment of up to 100 percent of the life insurance amount, up to a maximum of $1,000,000 in lieu of the death benefit. This is called the Accelerated Death Benefit.
  • Portability:  If an employee is no longer eligible for coverage, he/she and covered dependents may be eligible to continue in-force Employee and Family Term Life insurance.  Premiums may be higher than those paid by active employees.  You must submit the application and pay the required premium by the required deadline in order to be eligible for coverage. 
  • If both you and your spouse work for UC in a benefits-eligible position, please note: Only one spouse can elect Dependent Life Insurance and/or Family Personal Accident Insurance covering the same dependent children. 
  • Neither of you can elect Spouse Life Insurance (as both of you are covered with Employee Life Insurance).  
  • Survivor Support and Financial Counseling: Survivor support and financial counseling services from PricewaterhouseCoopers are available for 12 months at no additional cost for beneficiaries receiving at least $25,000 in policy proceeds.
  • Travel Assistance: Emergency travel assistance and travel information services are provided by RedPoint.

 

Options for your Spouse, Domestic Partner and Child/ren

The university offers life insurance for an employee’s spouse or domestic partner, and/or children. Click the button to learn more.

Employee Life Insurance and Taxation

Did you ever wonder what the paycheck entry EE GTLI Taxable is? You are not alone!

Per the IRS, employers are required to include in their employees’ income (as taxable wages) the cost of Group Term Life Insurance beyond $50,000, reduced by the amount the employee paid toward the coverage.  This amount is reported as wages on your W-2. 

The taxable amount is determined using the employee’s age on the last day of the calendar year.  The cost increases as you age using tables derives by the IRS.

Here is the current table:

AGE

Cost Per $1000

< 25

0.05

25-29

0.06

30-34

0.08

35-39

0.09

40-44

0.10

45-49

0.15

50-54

0.23

55-59

0.43

60-64

0.66

65-69

1.27

70 or older

2.06

Here is an example of how this works:

Anabelle’s annual base pay is $79,775.28.  She has elected Life Insurance coverage in the amount of 3x her annual base pay resulting in Life Insurance coverage of $239,325.84.  Anabel’s birthday is 12/20/1960 making her 57 at the end of 2017.

Total Life Insurance coverage

$239,325.84

Less amount paid by UC

$50,000

Balance paid by Anabel

$189,325.85

Divided by 1000

$189.26

Multiplied by 0.43

$81.41

Amount reflected on Anabel’s pay each month and counted as taxable income

$81.41


You will not be subject to Group Life Taxation if:

  • You elect $5,000 Life Insurance coverage;
  • Your annual base pay is less than $50,000 and you elect 1x in Life Insurance Coverage.
  • Your annual base pay is greater than $50,000 and you elect $50,000 Life Insurance Coverage. 

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