You can elect additional term life insurance for yourself. Choose to participate in one or both pre-tax plans. You may elect coverage for one of the following options:
- Within 30 calendar days of your eligibility or hire date.
- If you have a qualifying life event.
- During the annual open enrollment period.
Employee supplemental life insurance premiums are based on your age on Jan. 1 each year and are deducted on a pre-tax basis. Therefore, the value—not the amount—of life coverage you have over $50,000 is taxable as determined by the IRS. Imputed income is the term the IRS applies to the value of any benefit or service that should be considered income for the purposes of calculating federal tax. Even though imputed income adds to your taxable wage base, the increase is normally offset by the benefit of having pre-tax deductions.
ASU Life - Supplemental life plan summary
ASU provides supplemental group term life insurance. You may elect this coverage in increments of one, two, three, four or five times your annual salary, rounded up to the next $1,000, not to exceed $1,250,000 million. Coverage over $500,000 and elections greater than three times require evidence of insurability, regardless of current coverage. This coverage includes both accidental death and dismemberment and retiree life benefits.
After your initial 30-day enrollment period, due to a qualifying life event or during open enrollment:
- If enrolled, you may increase your coverage one level, if less than $500,000, without evidence of insurability; you may increase your coverage a second level with evidence of insurability.
- If electing for the first time, you may choose coverage of one to five times your annual salary with evidence of insurability.
ADOA Life - Supplemental life plan summary
The ADOA provides group term life insurance. You may elect this coverage in increments of $5,000, not to exceed three times your annual salary or $500,000, whichever is less. This coverage includes an accidental death and dismemberment benefit. Nonsmokers will receive an additional $1,000; eligibility is determined when a claim for death benefits is filed.
After your initial 30-day enrollment period, due to a qualifying life event or during open enrollment, you may elect or increase your coverage up to $20,000 maximum.
Imputed income
Employee supplemental life insurance premiums are deducted on a pre-tax basis. Because of this, the value—not the amount—of life coverage you have over $50,000 is considered taxable income. This value amount is determined by the IRS.
Imputed income is the term the IRS applies to the value of any benefit or service that should be considered income for the purposes of calculating federal tax. Even though imputed income adds to your taxable wage base, the increase is normally offset by the benefit of having pre-tax deductions.
| Supplemental — group term life | |
|---|---|
|
ASU Supplemental Life |
ADOA Supplemental Life |
|
Coverage options: One, two, three, four, or five times your annual base earnings, then rounded up to the next $1,000. Coverage limits: $10,000 minimum; $1,250,000 million maximum. Age reductions: Age 70 to 74 reduction formula: Annual salary multiplied by coverage level rounded to the nearest $1,000 multiplied by .40. Reduced coverage is effective on the first day of the pay period in which the 70th or 75th birthday occurs. |
Coverage options: Available in $5,000 increments. Coverage limits: Three times your annual salary or $500,000, whichever is less. Guaranteed issue amount: Same as coverage limits above. |
| Supplemental life premium cost per $1,000 of coverage | |||
|---|---|---|---|
| ASU Supplemental Life | ADOA Supplemental Life | ||
|
Age |
Rate per pay period |
Age |
Rate per pay period |
|
24 and under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 plus |
$.025 $.037 $.0392 $.043 $.052 $.0678 $.0936 $.1389 $.165 $.297 |
29 and under 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70 plus |
$.028 $.031 $.035 $.056 $.073 $.115 $.164 $.289 $.289 $.453 |
| Supplemental life premium calculation example | |
|---|---|
| ASU Life Supplemental | ADOA Life Supplemental |
|
How to determine your per pay period premium
Example: Age 53.
|
How to determine your per pay period premium
Example: Age 53.
|
