|Flexible Benefits Program|
Group Life Insurance
Excerpt from: University of Delaware Policies and Procedures Manual, Section: Personnel
The University offers group term life insurance to eligible full-time and part-time employees except "visiting" classifications. Employees choose one of the following five options:
* two times annual base salary
* four times annual base salary
Internal Revenue Service (IRS) regulations state that the cost of any employer-provided group insurance in excess of $50,000 is taxable income. Many employees consider this additional cost when making their life insurance choices. It is also appropriate to periodically evaluate the coverage selected in light of the taxability concerns around imputed income. Click here for more about Imputed Income.
Proof of Insurability
Proof of insurability is necessary for more than $400,000 of insurance; the maximum coverage is $1,000,000.
Life insurance is effective on the first of the month co-incident with the employee's hire date; otherwise, if hired during the month, life insurance becomes effective the first of the month following employment. If proof of insurability is required (that is, if the insurance amount should exceed $400,000), the default coverage is the $400,000 while The Standard Company evaluates the insured's medical history.
Employees may change their selections once a year during the open enrollment period. This generally occurs during the first two weeks in May; any new coverage selected becomes effective the following July 1.
Upon Separation from the University
Group life insurance is canceled on the employee's separation date, except that the full amount or a portion thereof may be converted to an individual non-group policy within 31 days of the separation date. In addition, University retirees have a one-time opportunity at retirement to continue term life insurance at group rates. All forms pertinent to this program, including conversion forms and beneficiary change forms, are available from the Office of Human Resources.