7.3 Life Insurance Benefits
- Group Term Life and Accidental Death & Dismemberment: The University contributes the entire cost of the premium for eligible employees as a life insurance plan benefit.
a. IRS regulations. The fringe benefit, group-term life insurance, is taxable to the recipient based on the fair market value for any portion greater than $50,000 each calendar year and is reported on the employees Form W2. Employees are responsible for paying the FICA taxes on the value of the group term life insurance.
Employees must sign a waiver to decline group term life insurance coverage and may avoid paying additional tax.
Termination: Upon separation of employment, benefits will terminate on the last day of the month of termination.
Rehire: Upon re-hire, no prior service time will be credited to your official employment benefit record.
- Voluntary Life: voluntary life and dependent voluntary life insurance coverage is available to eligible employees. The employee must contribute the entire cost of the premium for all supplemental coverage.
- The IRS ruling is not applicable to supplement insurance coverage. Supplement insurance coverage is paid solely by the employee and is an after tax deduction.
Termination: Upon separation of employment, benefits will terminate on the last day of the month of termination. Current coverage may be maintained through direct contact and payment to provider. Complete details are discussed during the exit interview with Human Resources.