Basic Life Insurance

Eligibility:
All regular full-time University employees working a minimum 35 hours per week

Who Pays:
University

Effective Date:
Starts on the first of the month following the date of eligibility, if date of eligibility is mid-month, otherwise the first of the month

Description:
The purpose of this benefit is to provide financial assistance in meeting the employee's share of the expenses of the final illness and funeral as well as the needs of the survivors. Includes an accelerated benefit in the event the covered person is diagnosed as terminally ill and both conversion and/or portability privilege in the event the covered person loses coverage.

Benefit Provisions:

Beneficiary designation(s) must be completed online in bswfit (the benefits management system). If the spouse or dependents are also serving as employees of the University, only one benefit per death will be made. Age-related reduction in spouse’s coverage is stated in the Group Life Plan Document.

Please note the following:

1. If the spouse or dependents are also serving as employees of the University, only one benefit per death will be made.
2. IRS requires that the imputed cost of coverage in excess of $50,000 for employee and $2,000 for dependents, must be included in income (using the IRS Premium Table), and be subject to Social Security and Medicare taxes.
3. The IRS Premium Table can be found in IRS publication 15 and is based on dependent's age 
4. Per IRS premium table, the imputed (or additional taxable) income added for electing the $10,000 coverage is between $0.50-$0.60 per month (for all children covered, not per child).
5. Additional life insurance coverage for employee and dependents are available at employee cost (see supplemental life insurance information)

Additional information regarding group-term life insurance and imputed income can be found on the IRS website:

• IRS Group-Term Life Insurace
• IRS Publication 15 see section Group-Term Life Insurance Coverage

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