Employee Self Service | UI Search A-Z

Enrollment

2014 Benefits Open Enrollment

Group Supplemental 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.

Group Supplemental Life Insurance

This program allows you to obtain additional life insurance, for yourself only, in excess of the amount provided by the group life coverage. This program is optional. If you do not want to participate in this program, enter the number “90” on the “Option Code” line. For additional life insurance, select from seven levels of coverage. These choices range from one half to three and one half times your salary. Next to each selection is the amount of coverage that is provided by each choice. The next column to the right shows the monthly costs associated with each coverage choice. Once your selection is made, enter the corresponding number on the “Option Code” line.

OPTIONAL PARTICIPATION

Supplemental life insurance can be purchased in addition to the group life plan. This program is age rated. The rates change as a person reaches 40, 50, and 60. No statement of health or physical exam is required for this program. 

SCHEDULE OF LIFE INSURANCE

The optional Supplemental Life Insurance plan allows you to acquire additional life insurance from 1/2 to 3 1/2 times your salary. The amount of coverage is based upon your annual benefits salary. If this salary is not an even thousand, it will be rounded to the next highest thousand and then multiplied by the coverage chosen. Coverage is available in the following amounts: 1/2 times salary, 1 times salary, 1-1/2 times salary, 2 times salary, 2-1/2 times salary, 3 times salary or 3-1/2 times salary.

COST

Rates are keyed to the coverage levels in the Schedule of Life Insurance. The rates for coverage are:

Age Monthly Rate per $1000 in coverage
Less than age 40 $.04
40 but less than 50 $.10
50 but less than 60 $.26
60 and up $.56

 

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--46

Calculation:
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.

Top of Page

Questions? Need Help?

If you have questions or concerns regarding the enrollment process, please contact:

University Benefits
120-40 USB

Email: benefits@uiowa.edu

Web Site: www.uiowa.edu/hr/benefits

Phone: 319-335-2676 or
877-830-4001 (toll free)

Fax: 319-335-2776