Life Insurance Benefit
Brandeis University provides group term-life insurance to eligible staff and faculty. The formal plan governs entitlement to benefits, benefit levels and other life-insurance coverage matters.
Eligibility
Regular full-time and benefits-eligible, part-time employees are automatically enrolled in the basic group term-life insurance plan on the first day of the month that coincides with or immediately follows their first day of employment. A life insurance card should be completed and submitted to the Office of Human Resources benefits unit. If no beneficiary is elected, upon the employee's death the benefit will be made payable to the employee's estate, subject to all regular federal and state taxes.
Basic Coverage
The university pays the entire cost of this portion of the plan. The maximum amount of basic noncontributory insurance is $250,000.
Supplemental Coverage
The plan also provides the option to purchase an additional amount of term-life insurance in increments of $20,000, $50,000, $100,000 and $200,000. Medical evidence of insurability is not required for any amounts under $200,000 at the time of initial eligibility. Application for the $200,000 level of coverage, as well as other levels of coverage when applied for outside the period of initial eligibility, is subject to medical evidence of insurability. The employee contribution is based on attained age and will change as the age changes in accordance with monthly premiums:
| Age Schedule | $20,000 | $50,000 | $100,000 | $200,000 |
|---|---|---|---|---|
| Under 30 | $1.00 | $2.50 | $5.00 | $10.00 |
| 30-34 | $1.40 | $3.50 | $7.00 | $14.00 |
| 35-39 | $1.80 | $4.50 | $9.00 | $18.00 |
| 40-44 | $2.00 | $5.00 | $10.00 | $20.00 |
| 45-49 | $3.00 | $7.50 | $15.00 | $30.00 |
| 50-54 | $4.60 | $11.50 | $23.00 | $46.00 |
| 55-59 | $8.60 | $21.50 | $43.00 | $86.00 |
| 60-64 | $15.20 | $38.00 | $76.00 | $152.00 |
| 65-69 | $25.40 | $63.50 | $127.00 | $254.00 |
The basic noncontributory amount (maximum $250,000) and additional optional insurance coverage may not exceed a combined maximum of $450,000.
Supplemental Insurance for Employees 70 and Over
When the employee reaches age 70, the in-force coverage will be reduced by 50 percent, and the rate is calculated according to the new benefit level:
| Age | Amount of Coverage |
|---|---|
| Up to 70 |
2x annual base salary or $30,000, whichever is greater.
|
| 70 to retirement | 50% of in-force coverage (basic and supplemental). |
Accidental Death and Dismemberment Insurance
Your basic life insurance coverage (excluding supplemental life insurance) also includes an accidental death and dismemberment insurance benefit. For more information, refer to the life insurance certificate.
Designating Beneficiaries
You may designate any beneficiary other than the university. This designation may be changed at any time in Workday.
Group Life Insurance Taxation
Federal Insurance Contributions Act (FICA)
The Omnibus Budget Reconciliation Act of 1987 mandates that premiums paid for an employee's group life insurance coverage in excess of $50,000 are considered income and subject to Social Security (FICA) taxes. FICA taxes will be deducted on a per-pay-period basis for those staff who have life insurance in excess of $50,000 and who have not paid the maximum FICA tax for the year.
Federal and State Taxes
The premiums paid for an employee's group life insurance coverage in excess of $50,000 are considered income, are subject to federal and state taxation and will appear on an employee's W-2 form as imputed income for the calendar year.