2013 Benefits Open Enrollment
Group Life Insurance
Instructions and Information for
Completing Your Personal Enrollment
These instructions will assist you in completing your Personal Enrollment for The University of Iowa Benefits Program.
MANDATORY PARTICIPATION
Participation in the University’s group term life insurance program is a condition of employment for regular staff members who hold a 50% time or greater appointment. No statement of health or physical exam is required for this program.
This coverage is for yourself only. The University provides you with two times your salary in coverage. Enrollment in the group life plan is mandatory.
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. This value must be added to the individual’s taxable salary when reporting income earned on the annual W2. This income is based upon the following IRS table:
Age |
Rate per $1,000
of Excess Life Insurance Per Year |
|---|---|
Under 25 |
$0.60 |
25 - 29 |
$0.72 |
30 - 34 |
$0.96 |
35 - 39 |
$1.08 |
40 - 44 |
$1.20 |
45 - 49 |
$1.80 |
50 - 54 |
$2.76 |
55 - 59 |
$5.16 |
60 - 64 |
$7.92 |
65 - 69 |
$15.24 |
70 and older |
$24.72 |
Example:
Salary--$50,000
3 times life insurance selected--$150,000
Age--46Calculation:
150,000 minus 50,000 = 100,000
100,000 divided by 1,000 = 100
100 times X 1.80 = $180.00
$180.00 is added to W2 as taxable income
In determining the amount of life insurance in excess of $50,000, the employer must total all life insurance programs in which the employee participates. For The University of Iowa, this would include the basic group program and the supplemental life insurance program. If you have any questions concerning this calculation and the possible effect on your taxable income, please contact the University Benefits Office.
If you have questions or concerns regarding the enrollment process, please contact:
University Benefits
120-40 USBEmail: benefits@uiowa.edu
Web Site: www.uiowa.edu/hr/benefits
Phone: 319-335-2676 or
877-830-4001 (toll free)Fax: 319-335-2776