Life Insurance


Iowa State University offers Voluntary/Supplemental Life Insurance, and Dependent Life InsurancePrincipal Financial Group is the insurer of the coverage.

 

Eligibility

Employee Requirements:
  • 1/2 time or greater
  • Appointed for 9 months or longer

 

Eligible employees may either accept or decline the coverage. Employees must enroll in Basic Life Insurance to be eligible for Voluntary Life Insurance. Faculty, P&S, Supervisory/Confidential Merit (Non-Organized) employees are eligible for Dependent Life Insurance when they enroll in Voluntary Life Insurance.

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Voluntary Life Insurance

Employees enrolled in Basic Life Insurance are eligible for Voluntary Life Insurance.

Certificate of coverage for voluntary life insurance

Enrollment / Annual Open Change Period

Enrollment takes place during new hire period or during annual open change period. Coverage may be increased or decreased. The effective date for enrollment / changes is upon notification of approval from Principal Financial Group.

To increase coverage after initial eligibility, you will be required to complete a Principal Statement of Health Questionnaire. If approved by underwriting, coverage will begin on the date determined by Principal Financial Group. If denied, you will maintain the current enrollment level.

Voluntary Term Life Insurance coverage may be dropped at any time. You must request to drop in writing and the insurance will be dropped by the 1st of the month following the day your written request is received by the Benefits Office. Dropping the Voluntary Life Insurance will also terminate the Dependent Life Insurance Coverage, if enrolled (Faculty, P&S, and Supervisory/Confidential Merit Only).

Coverage Options

You have four options for Voluntary Term Life Insurance Coverage, which are 1, 2, 3 or 4 of your budgeted annual salary (rounded to the nearest $1,000). Minimum coverage is the greater of 1 times your annual budgeted salary or $10,000, and the maximum is the lesser of 4 times your annual budgeted salary or $500,000. Guaranteed coverage under age 70 is the lesser of 2 times your annual budgeted base salary or $500,000, and the guaranteed coverage over age 70 is the lesser of 2 times your annual budgeted salary or $10,000.

New Hires are guaranteed coverage for the levels of 1 times or 2 times your annual salary. Coverage for the levels of 3 or 4 times your annual budgeted salary, require evidence of insurability by completing the Principal Statement of Health Questionnaire. If coverage is denied you will maintain the 2 times your annual budgeted salary level.

Premiums

The premium for Voluntary Term Life Insurance coverage is paid with post-tax dollars. The premiums are automatically deducted from each payroll throughout the year. The premium rates for Voluntary Term Life Insurance are based on your age and your budgeted annual salary. Premiums will increase in January of the year you attain the age of a new tier.

To calculate your premium rate:

  1. Round your annual budgeted salary to the nearest $1,000
  2. Multiply your salary by the level of coverage you are applying (1, 2, 3 or 4) then divide by $1,000
  3. Multiply that number by the cost of your age group
Age GroupCost Multiplier
29 and under$0.07
30-34$0.08
35-39$0.10
40-44$0.13
45-49$0.20
50-54$0.30
55-59$0.46
60-64$0.70
65-69$1.19
70 and over$3.12

Policy Benefits

If you become totally disabled and all leave is exhausted, coverage will continue and premium will be waived for you. Coverage continues without premium payment until total disability ends or the June 30th following the date you attain age 70, or you begin to withdraw from your retirement account, whichever occurs first. No benefits will be paid for any disability that results from willful self-injury, or self-destruction, while sane or insane, war or act of war, voluntary participation in an assault, felony, criminal activity, insurrection or riot.

Portability

You may continue coverage for yourself until age 75 if you cease to qualify as a member. The employee must be less than age 75 and enroll within 60 days from the date they cease to qualify as a member. When insurance coverage terminates as an active employee, you may be eligible to continue insurance under a Group Life Portability Insurance Policy underwritten by Principal Financial Group. The Group Life Portability Policy will contain provisions that differ from the Group Policy. You will have the option to continue the insurance coverage under this option. If coverage is ported, there a several reasons the coverage would terminate, review the details on the Summary Plan Document.

Accidental Death & Dismemberment

You receive an additional benefit equal to your Voluntary Term Life Insurance amount for loss of life, hands, feet or vision as the result of an accident. Coverage includes payment for injuries arising from or during employment for wage or profit for insured employee. The loss must occur within 365 days of the accident.

Accelerated Benefit

An accelerated benefit is an advance (before death) payment of a part of your member life insurance benefit. For qualifications see the Summary Plan Document/Group Life Insurance Booklet-Certificate.

Beneficiary Designation

If electing coverage, primary and contingent beneficiaries should be list on the Principal Beneficiary Designation/Change Form. Beneficiary change form must be returned to UHR Service Center. Do not send to Principal Financial Group. The beneficiaries you designate for your Group Term Basic Life/AD&D coverage will be the beneficiaries for your Voluntary Term Life Insurance unless you designate different beneficiaries for your Voluntary Term Life Insurance.

Beneficiary Designation/Change Form

Note: You may change the beneficiary designation at any time during the year.

If you list more than one primary beneficiary, the payable benefits will be divided percentage between the named beneficiaries as you specify. Contingent beneficiaries receive benefits only if all primary beneficiaries are deceased. If any beneficiaries are minors, under age 18 according to the Uniform Transfers to Minors Act, a custodian for such beneficiary may be named on the Principal Beneficiary Designation/Change Form for the proceeds to be payable to the beneficiary. If a custodian is not named, the funds will remain in an annuity with Principal Financial Group until the child reaches age 18.

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Dependent Life Insurance

Dependent Term Life Insurance pays a benefit to you when a covered family member (spouse/partner/child) deceases.  Faculty, P&S, Supervisory/Confidential Merit Employees enrolled in Basic Life Insurance AND Voluntary Life Insurance are eligible for Dependent Life Insurance.

Note: Non-Supervisory Merit employees are NOT eligible for Dependent Life Insurance.

Eligible Spouse/Domestic Partner/Dependent Children

A spouse or domestic partner is eligible, if not a benefits eligible employee of Iowa State University.

Eligible dependent children include:

  • Your unmarried natural or legally adopted children as well as stepchildren and foster
  • Stepchildren and foster children must live with you (or spend “non-school” periods with you)
  • Stepchildren not living with you may be covered if your spouse’s divorce decree stipulates that he or she provides coverage
  • Children who are incapable of self-support because of a developmental or physical disability may also be covered up to the end of the month
  • Note: No dependent children may be covered beyond the end of the month of their 26th birthday. It is the employee’s responsibility to drop coverage if all dependents become ineligible.

    Enrollment / Annual Open Change Period

    Enrollment takes place during new hire period or during annual open change period. Coverage may be increased or decreased. The effective date for enrollment / changes is upon notification of approval from Principal Financial Group.

    If you previously waived Group Term Basic Life and AD&D and Voluntary Term Life Insurance coverage, you may apply for the coverage during the open change period. All members applying for coverage will be required to complete a Principal Statement of Health Questionnaire. If approved by underwriting, coverage will begin on the date determined by Principal Financial Group. If denied, you will maintain the current enrollment level.

    Dependent Term Life Insurance coverage may be dropped at any time. You must request to drop in writing and the insurance will be dropped by the 1st of the month following the day your written request is received by the Benefits Office.

    Coverage Options/Premium

    New hires are guaranteed coverage. You have two options for Dependent Term Life Insurance coverage. Premiums are paid with post-tax dollars.

    Plan 1 - $5,000 for your spouse/domestic partner and $2,500 for each dependent child - Monthly premium: $2.40

    Plan 2 - $10,000 for your spouse/domestic partner and $5,000 for each dependent child - Monthly premium: $4.80

    Policy Benefits

    If you become totally disabled and all leave is exhausted, coverage will continue and premium will be waived for you. Coverage continues without premium payment until you no longer meet the definition of disability or June 30th following the date you turn age 70, or you begin to withdraw from your retirement account, or if only insuring your dependent children, when they are no longer eligible, whichever occurs first. No benefits will be paid for any death that results from willful self-injury, or self-destruction, while same or insane/war or act of war/voluntary participation in an assault, felony, criminal activity, insurrection or riot.

    Portability

    When insurance coverage terminates as an active employee, you may be eligible to continue insurance under a Group Life Portability Insurance Policy underwritten by Principal Financial Group. The Group Life Portability Policy will contain provisions that differ from the Group Policy. You may have the option to continue the insurance coverage under this option. If coverage is ported, there a several reasons the coverage would terminate, review the details on the Summary Plan Document.

    Beneficiary Designation

    You will be the beneficiary for Dependent Term Life Insurance. No alternate beneficiary designations are allowed. If you are deceased, benefits will be paid to your estate.

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