Employee Benefits
Life and Accidental Insurance
Four different life insurance programs and one accidental death and dismemberment insurance program are available to eligible university employees. Each program offers some unique features and benefits. Review these programs carefully and make sure to take coverage appropriate to your current and future needs. If you miss your open enrollment opportunity, you may not be able to obtain the insurance if you need it later on.
How much life insurance coverage do I need?
If you are young and have (or plan to have) a family, group term life insurance is an inexpensive way to protect your dependents. Coverage equal to five times your annual salary is not excessive, and you may need even more if your salary is low.
Some life insurance programs include extra benefits in the event of accidental death or certain injuries. If you travel frequently or have a hazardous job or hobby, you may want to buy more insurance specifically designed to cover accidental death and dismemberment.
When you no longer need to provide for your dependents or have significant savings and retirement benefits put aside, your need for term insurance may decrease. At older ages the cost of term insurance increases and you may want to reduce your coverage.
Use Minnesota's Life's online insurance needs calculator to determine how much life insurance you may want to carry.
Do the life insurance programs build cash value?
No. They are all term insurance policies, which means that they will pay benefits only for covered events and only while the coverage is in effect. When insurance coverage ceases, there is no residual value.
How do the different programs compare?
Feature and Benefit Comparison |
|
| State Group Life | Employee, spouse/domestic partner and child coverage available. All state agencies participate and coverage is portable if you transfer to a different state agency. Basic coverage is free at age 70 (age 65 if retired) at a reduced level if you meet the service requirements. The University contributes toward the premium. |
| Individual and Family Group Life | Employee, spouse/domestic partner and child coverage available. Participants may annually increase coverage without medical evidence. The university does not contribute toward the premium. |
| University Insurance Association (UIA) | Employee only coverage. Mandatory for UW faculty, academic and limited staff who meet salary requirements. Coverage amount decreases with age. The University does not contribute toward the premium |
| UW Employees, Inc. | Employee only coverage. Maximum coverage is $30,000, declining with age. The University does not contribute toward the premium |
| Accidental Death & Dismemberment (AD&D) | Employee and family coverage available. Pays benefits for accidental death or injuries as defined in the policy. Also provides benefits for covered injuries and benefits to care for surviving dependents. Includes Zurich Travel Assist. The University does not contribute toward the premium. |
Coverage Available |
|
| State Group Life | Employee:
Up to five times annual salary with automatic
annual increase based on previous year's salary |
| Individual and Family Group Life | Initial Coverage Levels: Employee: $5,000, $10,000, $15,000 or $20,000; Spouse: $5,000 or $10,000; Child: $2,500 or $5,000. Annually may increase until maximum coverage is reached: Employee: $200,000. Spouse: $100,000. Child: $10,000. Annual limits apply. |
| University Insurance Association (UIA) | Employee only coverage based on age, ranging from $101,000 if under 28
to $3,400 at age 70. |
| UW Employees, Inc. | Employee only coverage based on age, ranging from $30,000 before age 35 to $4,000 after age 64. |
| Accidental Death & Dismemberment (AD&D) | Employee:
Up to $500,000 Spouse: 50%-60% of employee's coverage Dependent Children: 15% - 20% of employee's coverage |
Employer Contribution |
|
| State Group Life | Basic coverage: Employer pays an additional 65.25%
of employee's premium for basic coverage |
| Individual and Family Group Life | None |
| University Insurance Association (UIA) | None |
| UW Employees, Inc. | None |
| Accidental Death & Dismemberment (AD&D) | None |
Living Benefit Payment for Terminal Illness |
|
| State Group Life | Yes |
| Individual and Family Group Life | Yes |
| University Insurance Association (UIA) | Yes |
| UW Employees, Inc. | No |
| Accidental Death & Dismemberment (AD&D) | No |
Additional Accidental Death and Dismemberment Benefit |
|
| State Group Life | Yes |
| Individual and Family Group Life | No |
| University Insurance Association (UIA) | No |
| UW Employees, Inc. | No |
| Accidental Death & Dismemberment (AD&D) | Yes - only payable if accidental death or dismemberment claim |
Continuation of Group Coverage Available After Employment Ends |
|
| State Group Life | Yes, for employees who meet a service requirement (generally must be at or near retirement age) |
| Individual and Family Group Life | No |
| University Insurance Association (UIA) | Yes |
| UW Employees, Inc. | No |
| Accidental Death & Dismemberment (AD&D) | Yes, at retirement only |
Conversion To A Permanent Plan After Employment Ends |
|
| State Group Life | Yes |
| Individual and Family Group Life | Yes |
| University Insurance Association (UIA) | Yes |
| UW Employees, Inc. | Yes |
| Accidental Death & Dismemberment (AD&D) | Yes |
What do I need to know about payment of death benefits?
If you do not designate a beneficiary or if your designated beneficiaries are not living at the time of your death, benefits will be paid according to the standard sequence specified in the plan brochure. The standard sequence of beneficiaries varies from plan to plan. You should contact your campus benefits office for the beneficiary designation form specific to your insurance plan.
See also: Change of beneficiaries
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This document was last revised on October 11, 2012
