Supplemental Group Life Insurance
On this page: Plan Provisions | Plan Contributions | Eligibility | Initiation of Coverage | Termination of Coverage | Premiums
Plan Provisions
Eligible employees can add supplemental amounts to Basic Group Life Insurance. Choosing Supplemental insurance does not affect your Basic insurance.
- Provides a death benefit to the designated beneficiary up to 4 times the employee's base annual salary reduced to the nearest 1,000
- At age 70 or older, the amount of Supplemental Life Insurance, if any, will be equal to the amount of coverage in force for the employee immediately prior to becoming age 70 multiplied by 65 percent
- Continues to pay life insurance premiums if a covered employee becomes totally disabled
- Allows covered employees to convert group life coverage to an individual policy without proof of good health, once they are no longer an active employee
- Offers an accelerated death benefit, which allows terminally ill employees the opportunity to collect all or part of their life insurance prior to death
Options available:
| Amount of Insurance | Guaranteed Issue |
Maximum Coverage |
| ONE times salary | $50,000 |
$250,000 |
| TWO times salary | $100,000 |
$500,000 |
| THREE times salary | $150,000 |
$750,000 |
| FOUR times salary | $200,000 |
$1,000,000 |
Differences between Guaranteed Issue and Maximum Coverage:
Example #1:
A person makes $51,000/year in base salary.
If they were to choose option two (2X Salary) with a Guaranteed Issue of up to $100,000, their beneficiary would only receive $100,000 upon their death.
If they were to choose option two (2X Salary) with the Maximum Coverage option, their beneficiary would receive the full amount of two times their base salary, which would be $102,000. (To enroll in Maximum Coverage, a Medical History Statement is required.)
Example #2:
A person makes $70,000/year in base salary.
If they were to choose option three (3X Salary) with the Guarantee Issue up to $150,000, their beneficiary would only receive $150,000 upon their death.
If they were to choose option three (3X Salary) with the Maximum Issue up to $750,000, their beneficiary would receive $210,000. (To enroll in Maximum Coverage, a Medical History Statement is required.)
Example #3:
A person makes $40,000/year in base salary.
If they were to choose option one (1X Salary) with the Guarantee Issue up to $50,000, their beneficiary would only receive $40,000 upon their death.
If they were to choose option one (1X Salary) with the Maximum Issue up to $250,000, their beneficiary would only receive $40,000 upon their death. (To enroll in Maximum Coverage, a Medical History Statement is required.)
*There is no difference in rates between the Guarantee Issue and the Maximum Coverage level.
* When electing between the available options, your base salary will determine the amount of insurance that will be paid to your designated beneficiary, based on the examples provided above.
Plan Contributions
Basic Group Life insurance coverage is provided to eligible employees without cost, courtesy of Indiana University.
Supplemental Life insurance is an elected benefit for which employees pay 100% of the premium.
- The cost for supplemental coverage is automatically deducted from the employee's paycheck.
- The employee will be informed of the premium amount at the time of enrollment.
Eligibility
- All employees who are covered under Basic Group Life Insurance are eligible to elect supplemental coverage.
- Employees are eligible on the day they became part of an eligible group — usually the day the employee was hired
Initiation of Coverage
- Must be made within 30 days after becoming an eligible employee by submitting the appropriate paperwork to the campus HR office.
- If an election for supplemental coverage or an increase in supplemental coverage is made after this initial 30 day period, a Medical History Statement form will be required.
Updating Beneficiary Information
- Changes to beneficiary designations can be made at anytime.
- Benefits will be paid to the most current beneficiary listed at the time of death.
Termination of Coverage
To voluntarily terminate your Supplemental Life Insurance coverage, please complete the Supplemental Life Termination form (PDF) and return it to your local Human Resources Department for processing.
Coverage otherwise terminates when employment with Indiana University terminates. A covered employee can convert or port the prior amount of insurance to an individual policy (conversion or portability of coverage must be completed within 31 days after group coverage ends). Please contact Standard Insurance immediately after termination of employment to request conversion or portability information by calling 1-800-378-4668.
For questions regarding Portability or Conversion of Basic and Supplemental Life Insurance Coverage, please contact UHRS, at 812-855-2007.
Premiums
Premium rates are based on the participant's age at the time monthly payroll transactions are processed:
Effective April 1, 2007
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$1,000 of Coverage |
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Premium Calculation
Multiply annual budgeted base salary times the level of coverage selected (One, Two,Three, or Four times salary), reduce to nearest $1,000, divide by 1,000 and multiply by the appropriate premium rate from the chart above.
Example:
$23,700
32
Two times salaryPlug the above information into this formula:
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(see chart above) |
