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.
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 | All state agencies participate and coverage is portable if you transfer to a different state agency. Offers insurance benefits for eligible dependents. 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 | Open to university employees and their spouses and children. Participants may annually increase coverage without medical evidence. The university does not contribute toward the premium. |
| University Insurance Association (UIA) | Mandatory for UW faculty and academic staff who meet salary requirements. Coverage amount decreases with age. The University does not contribute toward the premium |
| UW Employees, Inc. | Open to most university employees. Maximum coverage is $25,000, declining with age. Coverage is not offered to spouse or dependents. The University does not contribute toward the premium |
| Accidental Death & Dismemberment (AD&D) | Open to most university employees. Pays benefits for accidental deaths or injuries as defined in the policy. 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 | Initially,
Employee: $5,000, $10,000 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:
Declines with age, ranging from $60,000 at age 21
to $2,000 at age 70. Spouse and Dependent Children: none |
| UW Employees, Inc. | Employee:
Declines with age, ranging from $25,000 before age
35 to $3,000 after age 64. Spouse and Dependent Children: none |
| Accidental Death & Dismemberment (AD&D) | Employee:
Up to $250,000 Spouse: 45%-50% of employee's coverage Dependent Children: 10% - 20% of employee's coverage |
Employer Contribution |
|
| State Group Life | 65%
of Basic (level 1) premium |
| 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) | Yes |
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 |
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 |
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 June 8, 2007
