The UW provides some employer-paid basic "term" life insurance and accidental death and dismemberment (AD&D) insurance for its benefits-eligible employees. "Term" insurance has a low group premium and, unlike "whole life" insurance, has no cash value.
Note to temporary employees: Please see information about when temporary employees become eligible for insurance coverage.
Life insurance provides a lump sum of money to beneficiaries upon death of the insured. It is intended to replace the deceased's loss of current and some future income, and may also be useful in estate planning. Beneficiaries will receive payments whether the insured dies of natural or accidental causes. Whether or not to purchase life insurance, and how much, is a personal choice based on what the person is trying to protect. Life insurance can help:
AD&D insurance provides a lump sum payment if death or dismemberment is the direct result of an accident. If the insured has both life and AD&D insurance and dies as the result of an accident, both coverages are paid to designated beneficiaries. An employee enrolled in AD&D insurance who becomes dismembered as a result of an accident will be the beneficiary of the claim. The employee is also the automatic beneficiary for any dependent claims. AD&D coverage never requires proof of good health, and can be added or dropped at any time. AD&D insurance has no cash value.
Some life insurance is available (in Parts B, C and D shown in the chart below) regardless of health issues, as long as the eligible employee applies for coverage during the first 60 days of insurance eligibility. For amounts above the "automatic issue" limits, and for all life insurance requested after the 60-day window, eligible employees may need to provide evidence of insurability (EOI).
The University pays Part A premiums for $25,000 of employee life insurance and $5,000 of AD&D. All other insurances listed in this chart are those that eligible employees may elect to purchase.
| Type of Term Insurance | Part | For: | Life Insurance Coverage | AD&D Insurance Coverage |
|---|---|---|---|---|
| Basic Life & AD&D (UW pays premiums) |
Part A | Eligible Employee | $25,000 | $5,000 |
| Basic Life | Part B | Spouse/Qualified domestic partner (QDP) and/or Child(ren) | $2,500 Evidence of Insurability (EOI) is required if requested after first 60 days of eligibility. |
N.A. |
| Basic Life | Part B | Unmarried dependent child(ren) between 14 days and 24 years old | $2,500 | N.A. |
| Supplemental Spouse/SSDP Life | Part B Supplemental | Spouse or QDP (Requires Part B Basic) | Increments of $1,000, up to a maximum of one-half of the total Part C and Part D coverage that Employee elected for him/herself. After first 60 days of eligibility, or for coverage in excess of $25,000, it will be necessary to provide Evidence of Insurability (EOI). |
N.A. |
| Optional Employee Life | Part C | Eligible Employee | During first 60 days Part C is "automatic issue". After 60 days, Evidence of Insurability (EOI) is required. Coverage for Part C is between 50-100% of your annual salary rounded up to the nearest $1,000.* (May be indexed to increase automatically with salary increases.) | N.A. |
| Supplemental Employee Life (in addition to Part C) |
Part D | Eligible Employee | Up to $350,000 of coverage, in increments of $1,000. During first 60 days, up to $50,000 in Part D is without Evidence of Insurability (EOI). After 60 days, or for coverage in excess of $50,000, it will be necessary to provide EOI. |
N.A. |
| Accidental Death & Dismemberment | Part E (w/dependents) |
Eligible Employee | N.A. | Covers the employee for the face amount, & dependents for a percent of the face amount |
| Accidental Death & Dismemberment | Part E (w/of dependents) |
Employee & eligible dependents) | N.A. | Covers the employee only - amounts from $25,000 to $250,000 |
*Annual salary for those with appointments less than 12 months is calculated at monthly salary x 12.
The amount of insurance needed, if any, depends on individual circumstances. Many people find that as they get older they need less life insurance. If there are adequate retirement savings, the mortgage is paid, and children and elderly parents are financially independent, very little or no life insurance may be needed. However, life insurance may also play a role in estate planning, or in choosing retirement income options, depending on the health of the employee and/or dependents. Life insurance should be viewed in the context of the individual's total financial plans.
Determining insurance needs requires evaluating current and future assets as well as expenses such as:
If you are:
Coverage which does not require review/approval by the insurance company will be effective the first day of the month after receipt of the form. If evidence of insurability is required, Benefits & Work/Life will forward your form to the insurance company, which will contact you directly if any additional information is needed. When evidence of insurability is required, coverage is not effective until the first of the month following the approval date.
The University pays the eligible employee's premiums for Basic Insurance, Part A (see chart above). You pay any additional insurances you elect.
See current Life Insurance Premiums.
Benefits & Work/Life files claims on behalf of you or your beneficiary. A certified copy of the death certificate is required for the claim.
If you are on leave or lay off status, you may self-pay your life insurance by paying the employee premium plus the UW's contribution. If you do not do so, you may be required to re-apply with evidence of insurability.
If you apply within 31 days of termination (retirees have 60 days) and you have had coverage for at least 5 years, you may convert your group term life insurance to individual permanent whole life coverage. Note that AD&D cannot be converted. Evidence of insurability will not be required, but the individual rates are significantly higher than the group term rates.
Copyright © 2007 University of Washington
