[Faculty Handbook Category #4]
Employees with an FTE of 0.50 or greater are eligible to participate in group term life insurance without proof of insurability on the first of the month concurrent with or following their date of hire. With the exception of dependent term life, employees who elect coverage in subsequent plan years will be required to submit personal health statements to the insurance provider. To receive coverage, employees must complete a Life/Disability Enrollment Form. The maximum amount of coverage for all life insurance options cannot exceed $500,000.
Basic Group Term Life Insurance
Employees will be provided basic group term life insurance equal to two (2) times their annual salary. The college will pay the premiums for this coverage. The IRS assigns a taxable value to Basic Life Insurance in excess of $50,000; this value is added to an employee’s taxable income. Employees have the option to limit this coverage to $50,000.
Supplemental Term Life Insurance
Employees have the option of purchasing additional supplemental term life insurance equal to one (1) or two (2) times their annual base salary. The premiums for this coverage will be based on age and will be paid for by the employees with after tax deductions.
Dependent Term Life Insurance
Employees have the option to purchase life insurance for their spouse and/or dependent children. The death benefit for a spouse is $7,500 and $2,500 for each dependent child. If the college employs both husband and wife, only one can elect coverage for the dependent child(ren). Employees will pay for these premiums with after tax deductions.