Lesley offers both Basic and Supplemental Life Insurance through Unum Life Insurance.
Basic Life Insurance
Life insurance eligibility begins the first day of the month following the date you became actively employed, after you complete the required enrollment forms. Currently, Lesley offers basic life insurance to employees on a group basis for one times base salary rounded to the highest thousandth. (For example, if your annual salary is $30,500 your life insurance benefit would be $31,000.) The maximum benefit permitted under the plan is $250,000. Additionally, the amount of life insurance reduces after you reach age 65 and 70.
Lesley University pays for cost of the premium up to 1X base salary. If your salary is $50,000 or greater, the value of the group life insurance that exceeds $50,000 is taxable under federal law. This value is called imputed income and is added to your paycheck and taxed accordingly.
If you die while insured, those designated on your beneficiary form will receive the life insurance benefit after a proof of claim has been submitted to Unum by Human Resources. It is important to update beneficiary information with Human Resources if there are any changes in family status while employed (e.g., marriage, divorce, death, birth, adoption, etc.).
All benefits-eligible employees of Lesley University can participate in the life insurance program. Employees are considered eligible if they are regularly scheduled to work at least seventeen and one-half hours (17.5) per week. Additionally, a temporary employee who works at least seventeen and one-half hours (17.5) per week and is scheduled to work nine months or longer is considered an eligible employee. Life insurance is not offered to dependents of employees and/or spouses. Work study students and adjunct faculty are not eligible for benefits.
Eligible employees may participate in these plans the first day of the month following the date of hire, providing the appropriate enrollment form(s) have been completed. Coverage ends on the last day of employment.
Supplemental Life Insurance
Employees can elect coverage in increments of $10,000 to a maximum of $500,000 not to exceed five times an employee's basic annual earnings.
Spouses/Spousal Equivalents: Employees can elect coverage for their spouses/spousal-equivalents in increments of $10,000 to a maximum of $250,000 (not to exceed 50% of the employee elected coverage amount)
Dependents: Employee can elect coverage for their dependent children in the flat amount of $10,000 (not to exceed 50% of the employee elected coverage amount)
Monthly Premium Payments
Premiums are deducted post-tax from an employee's wages on a monthly basis. Rates are based on an employee's age as of January 1st of a given calendar year, the following rates would apply:
- Child(ren) = $1.80 per child per month
- Employee and Spouse/Spousal-Equivalent per $1,000 of coverage per month:
Example: Employee John Doe (age 40) elects $50,000 in self-coverage and $20,000 in spousal coverage. In this scenario he would be paying:
- .10 * $50,000 / $1,000 = $5 per month for self-coverage
- .10 * $20,000 / $1,000 = $2 per month for dependent coverage
For a total of $7.00 deducted per month.
When Can I Enroll?
Employees have the opportunity to enroll in this benefit when they first become benefit-eligible (the first month after an employee's date of hire in most cases). After the initial offering, employees are eligible to enroll, terminate or change cover each year during open enrollment effective for the upcoming calendar year.
At their initial hire date employees can enroll in any amount up to the guarantee issue. For self coverage the guarantee issue amount is the lesser of $200,000 or 3 times an employee's annual salary. For spousal coverage, the guarantee issue amount is $30,000. For dependent coverage, the guarantee issue amount is $10,000 per child.
Employees who elect coverage above the guarantee issue amount will need to complete evidence of insurability documentation subject to Unum's approval.
There is no guarantee issue amount for employees who enroll or change coverage during open enrollment. In this case employees wishing to enroll or change coverage must fill out evidence of insurability subject to Unum's approval.
On the first of the year following your 65th birthday, your insurance coverage amount will reduce to 65% of the original amount; and to 50% of the original amount on the first of the year following your 70th birthday.
Conversion of Coverage
If you terminate employment, are no longer eligible for coverage, or your coverage reduces due to age, pension or retirement, you have the opportunity to convert your Supplemental term life insurance to an individual life insurance policy within 31 days of your termination in coverage.
Contact Human Resources at firstname.lastname@example.org or 617.349.8787 for more information.