Supplemental Group Life Insurance

Open Enrollment is November 11-22
Learn about changes to this and other benefit plans for 2020 at the Open Enrollment website.

On this page: Overview | Cost | Enrollment | When Coverage Ends | Questions | Plan Forms

Overview

Employees covered by Basic Life Insurance are eligible to purchase additional coverage through IU’s Supplemental Life Insurance plan. Enrollment is voluntary and the employee pays 100% of the premium. This is a term life plan that provides a death benefit of 1 – 4 times the employee’s base annual salary reduced to the nearest 1,000.

To File a Claim

  • Contact IU Human Resources at or 812-856-1234.

Resources

See Also

Coverage Options

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

Guaranteed Issue and Maximum Coverage

Depending on the coverage level selected, the amount of insurance is a multiple of your salary up to the corresponding Guarantee Issue or Maximum Coverage amount listed in the chart above.

Example #1: $51,000/year Base Salary

An employee’s annual base salary is $51,000.

If the employee elects to enroll in TWO times salary Guaranteed Issue up to $100,000, their designated beneficiary will be eligible to receive no more than $100,000 upon the employee’s death.

If the employee elects to enroll in TWO times salary Maximum Coverage up to $500,000, their designated beneficiary will be eligible to receive no more than $102,000 upon the employee’s death.

Example #2: $70,000/year Base Salary

An employee’s annual base salary is $70,000.

If the employee elects to enroll in THREE times salary Guarantee Issue of up to $150,000 their designated beneficiary will be eligible to receive no more than $150,000 upon the employee’s death.

If the employee elects to enroll in THREE times salary Maximum Coverage of up to $750,000 their designated beneficiary will be eligible to receive no more than $210,000 upon the employee’s death.

Cost

The monthly premium is a designated amount, based on age, per $1,000 of coverage. The cost for supplemental coverage is paid entirely by the employee. While the cost per $1,000 of coverage is the same for Guarantee Issue and Maximum Coverage options, the monthly premium rate will change as you age. Depending upon your level of coverage, the monthly premium cost may also change with changes in salary.

Monthly Premium Rates

Effective July 1, 2018
Age
Monthly Premium Per
$1,000 of Coverage
Under 30
$.030
30-34
$.045
35-39
$.053
40-44
$.068
45-49
$.098
50-54
$.143
55-59
$.248
60-64
$.375
65-69
$.675
70 and over
$1.20
How to estimate your monthly premium:

Premium Calculation

Please follow the formula noted below to estimate the monthly premium cost for Supplemental Life Insurance coverage:

$____________ Amount of optional Supplemental Life Insurance elected for self
/ 1,000 Divided by 1,000
=   ____________ Total from above
x $____________ Times the premium rate from chart above
$____________ Your estimated monthly premium cost

Please note: The amount of optional Supplemental Life Insurance elected for self is a multiple of your annual base salary (rounded down to the nearest thousand) up to the guarantee or maximum coverage limit for the benefit coverage option you have selected. 

Example One:
An age 50 employee with an annual salary of $55,500 would like to estimate the premium cost for 1x salary Guarantee Issue Supplemental Life Insurance.

Sample Base Salary: $55,500 Sample
Age: 50
Desired Level of Coverage: 1xSalary Guarantee Issue

$50,000/1,000 = 50 x $.143 = $7.15 estimated monthly premium cost

In this example, the amount of Supplemental Life Insurance elected for self is $50,000. Although the employee’s annual base salary rounded down to the nearest thousand is $55,000, the Guarantee Issue amount for 1x salary is limited to up to $50,000.

Example Two:
An age 50 employee with an annual salary of $55,500 would like to estimate the premium cost for 1x salary Maximum Coverage Supplemental Life Insurance

Sample Base Salary: $55,500
Sample Age: 50
Desired Level of Coverage: 1xSalary Maximum Coverage

$55,000/1,000 = 55 x $.143 = $7.86 estimated monthly premium cost

In this example, the amount of Supplemental Life Insurance elected for self is $55,000. The annual base salary rounded down to the nearest thousand is $55,000 and the Maximum Issue amount for 1x salary is up to $250,000.

Enrollment

Employees may enroll in Supplemental Life Insurance, up to the Guaranteed Issue amount, within 30 days of becoming eligible (typically your date of hire) without providing evidence of insurability.

Employees who wish to enroll after 30 days of becoming eligible, increase their coverage after 30 days of becoming eligible, or who would like to elect any Maximum Coverage amount, may only do so by proving evidence of insurability. This requires that the employee submit a Medical History Statement to be approved by the benefit underwriter, The Standard. In some cases, The Standard may request supplemental medical information or a physical exam. The Standard will notify the employee of their determination and if approved, will notify Indiana University Human Resources who will process your enrollment.

> Learn more about enrolling in, terminating, or changing Supplemental Life Insurance

When Coverage Ends

To voluntarily terminate your Supplemental Life Insurance coverage, complete the Enrollment / Change / Termination Form (PDF) and return it to IU Human Resources for processing.

Coverage otherwise ends when benefit eligibility ends, usually due to separation from IU employment or transferring to a non-eligible position. A covered employee can convert or port the prior amount of insurance to an individual policy by completing the application below. Note: the group policy number is 135262.

Conversion or portability of coverage must be completed within 31 days after group coverage ends. For more information on continuing this benefit when coverage ends, review the Benefits After Separation guide.

Portability (Term Life)

Portability allows you to convert your group life policy into a personal term life policy. Term life insurance provides coverage for a specified amount of time (the “term”). If you pass away during this term, your beneficiaries will receive a benefit payout from the policy. This benefit that includes AD&D and dependent coverage.

Subject to eligibility, you may elect up to the amount of group life insurance coverage you had as an employee up to $300,000. Eligibility criteria and cost details of Portable Life Insurance coverage are noted in the Portability Application.

To apply for Portable Life Insurance coverage, complete the following steps within 31 days of the date your group life coverage ends:

  1. Complete the Portability Application and send it to The Standard’s mailing address (noted on the top left corner of the application)
  2. Send the Employer Statement for Group Life Portability Insurance to IU Human Resources for completion/submission.

Conversion (Whole Life)

Conversion allows you to convert your policy to a whole life insurance policy, regardless of your state of health, as long as you apply within 31 days. Whole life provides continued protection with premiums payable to age 100. The policy accumulates cash value, and will allow you to borrow against the cash value, if sufficient. Interest on the policy loan will accrue daily and will be at a fixed rate (subject to policy terms and applicable state law). The policy does not share in dividends. Eligibility criteria and premium costs are noted within the Conversion Application.

To apply for Whole Life Conversion Insurance coverage, complete the following steps within 31 days of the date your group life coverage ends:

  1. Complete the Conversion Application and send it to The Standard’s mailing address (noted on the top left corner of the application)
  2. Send the Employer Statement for Group Conversion Insurance to IU Human Resources for completion/submission.

Questions

To request a copy of your Group Life Insurance certificate or for additional assistance with your Group Life Insurance benefits, please contact IU Human Resources at or 812-856-1234.