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ISU Plan Life Insurance
Iowa State University offers Group Term Basic Life Insurance. Principal Financial Group is the insurer of the coverage.
- 1/2 time or more
- Appointed for 9 months or longer
Eligible employees may either accept or waive the Life and Accidental Death and Dismemberment (AD&D) coverage.
If “no coverage” is elected or employee share is reduced due to reaching age 65, the ISU share will apply first to the employee medical and/or dental share and then any remaining funds are deposited into either Health Reimbursement Account (HRA) or Dependent Care Assistance Program (DCAP) the default account will be the HRA.
- New hire
- Coverage is effective on the first day of the month coinciding with or following the date of employment, provided you enroll by your assigned deadline.
- Annual Open Change Period
- If you previously waived coverage, you may apply for the coverage during the open change period.
- You will be required to complete a Principal Statement of Health Questionnaire to apply for coverage.
- If approved by the underwriting, coverage will begin on the date determined by Principal Financial Group..
The ISU pays 100% of the share of the Group Term Basic Life Insurance.
If “no coverage” is elected or employee share is reduced due to reaching age 65, the ISU share will go towards the ISU medical and then ISU dental benefits, if applicable. Any remaining funds are deposited into either Health Reimbursement Account (HRA) or Dependent Care Assistance Program (DCAP), the default account will be the HRA.
Under the ISU Plan, the University’s contributions toward your benefits of medical, dental, life and disability (after the first year), will be listed on the payroll information system earnings statement as the ISU Plan Credit. The plan credit is the contribution ISU provides towards the cost of benefits. On the earning statement, the full premium will be indicated. The total of the ISU Plan Credit minus each full premium is the employee amount to pay.
- Term life insurance and thus does not provide for a cash surrender value.
- Value is two (2) times your University annual budgeted salary rounded to the nearest $1,000.
- There is waiver of continued premium payments in the event of total disability.
- Value at the time of disability will continue until January 1st following your 65th birthday.
- Value will continue reduced by 65% until you no longer meet the definition of disability or when you turn age 70, whichever occurs first.
- No benefits will be paid for any disability that results from willful self-injury, self-destruction, while sane or insane/war or act of war/voluntary participation in an assult, felony, criminal activity, insurrection or riot.
- Employees who continue active employment after age 65 will have benefits reduced to 65% of scheduled benefit on January 1st the year of your attainment of age 65. The premium cost will be reduced accordingly.
- Retiree Life Insurance coverage of $4,000, if enrolled for 10 consecutive years immediately preceding retirement.
- The group term basic life insurance policy is not a portable plan. Terminating employees are offered a conversion application.
- Accidental death insurance of four (4) times your University budgeted salary rounded to the nearest $1,000. This is in addition to the Group Term Life Coverage.
- Accidental dismemberment coverage between 1/2 and the full amount of your University annual budgeted salary.
If you cease active work because you are totally disabled, you might qualify to continue your member life insurance and member accidental death and dismemberment insurance. This continuation is called coverage during disability. The qualifications are indicated in the Summary Plan Document.
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.
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.
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.
Note: You may change the beneficiary designation at any time during the year.