5.6.1 Core Term Life Insurance
Core term life insurance with accidental death and dismemberment coverage is a benefit provided by the College at no cost to eligible employees. The benefit is equal to your base annual pay. The value of insurance in excess of $50,000 is considered a taxable benefit. Those who earn less than $50,000 but purchase supplemental term life insurance may be subject to this tax if the combined total insurance exceeds $50,000. Employees have the option to “cap” their core term life insurance to $50,000 in order to limit their tax liability. All eligible employees should receive the group life insurance benefits certificate when hired or on becoming eligible for the benefit. The appropriate forms for enrolling and designating beneficiaries may be obtained from the Benefits Office.
5.6.2 Supplemental Term Life Insurance
Employees have the option of choosing supplemental term life insurance for themselves. This optional life insurance does not include Accidental Death & Dismemberment benefits. The cost of the supplemental term life insurance is based on your age. Supplemental insurance may be purchased in amounts of $25,000, $50,000, $100,000 or $150,000. During open enrollment, employees wishing to increase coverage or electing coverage for the first time must complete the life insurance application and Medical History Statement. Forward completed forms to the Benefits Office. Once the carrier approves the application, pre-tax payroll deductions will begin. Newly hired or eligible employees electing $25,000 or $50,000 of supplemental insurance within 30 days of eligibility will not have to apply for medical approval. However, newly hired or eligible employees electing $100,000 or $150,000 of supplemental insurance must complete the life insurance application and Medical History Statement. Once the carrier approves the application, pre-tax payroll deductions will begin. The appropriate forms for enrolling may be obtained from the Benefits Office.
