This optional program allows you to obtain additional life insurance, for yourself only, in excess of the amount provided by the group life coverage.
Schedule of Life Insurance
The optional Supplemental Life Insurance plan allows you to acquire additional life insurance from 1/2 to 3 1/2 times your salary. The amount of coverage is based upon your annual benefits salary. If your salary is not an even thousand, it will be rounded to the next highest thousand and then multiplied by the coverage chosen. Coverage is available in the following amounts:
- 1/2 times annual budgeted benefits salary
- 1 time annual budgeted benefits salary
- 1 1/2 times annual budgeted benefits salary
- 2 times annual budgeted benefits salary
- 2 1/2 times annual budgeted benefits salary
- 3 times annual budgeted benefits salary
- 3 1/2 times annual budgeted benefits salary
Maximum Coverage Limits
Effective January 1, 2015, the maximum amount of obtainable life insurance is $1,000,000.
The Supplemental Life Insurance plan is age rated and the rates change as a person reaches 40, 50, and 60. Until a person reaches the age of 60, the rate for this program is less than the group life product. The rates for the group life product are higher since it must insure all employees no matter what age they are or what medical conditions they might have. Carefully evaluate these two plans to insure you are getting the most coverage for your money.
Rates are keyed to the coverage levels in the Schedule of Life Insurance. The rates for coverage are:
|Age||Monthly Rate per $1000|
|Less than age 40||$.04|
|40 but less than 50||$.10|
|50 but less than 60||$.26|
|60 and up||$.56|
Faculty, Professional & Scientific, Merit Supervisory Exempt Staff, and Merit Confidential: Adjustments to the amount of insurance and/or the rate paid for the insurance that are due to a change in age or budgeted salary will generally adjust annually on January 1st.
Merit Staff: The amount of insurance and the rate paid for the insurance will adjust monthly, reflecting a change in age or budgeted salary.
Taxable Life Insurance
The Internal Revenue Service (IRS) has determined that if an employer allows employees access to life insurance in excess of $50,000, the amount in excess of $50,000 has a value to the employee and is taxable.
- 2015 Life and Disability Insurance Booklet (pdf)
- Beneficiary Designation Form (pdf)
- Life Conversion Policy Application (pdf)
- Life Conversion Policy Rates (pdf)
- Continuation of Life Insurance Information (pdf)
- Principal Financial Group VTL Insurance Exit Form (pdf)
- Supplemental Life Portability Application (pdf)
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