University Life Coverage

unum life insurance Company

Participation: Participation is mandatory for all new benefit eligible ISU employees. The coverage amount is 2.5 times your salary with a maximum coverage of $100,000 and includes the same amount of Accidental Death and Dismemberment (AD&D) benefits. The University currently pays all of the cost of coverage.  For employer-paid coverage in excess of $50,000, an assessed tax know as imputed life may be added to the employee's taxable liability.

Continuation of Benefits: In the event that an employee has to leave their position with the University, such as leave of absence, the employee has the option to continue the coverage for a maximum of twenty-four months. The maximum coverage provided while on leave of absence is $50,000.

Beneficiaries: Employees or retirees of ISU can name or change beneficiaries at any time.  If more than one primary beneficiary is named, benefits will be paid to each beneficiary in equal sums or as designated by the employee or retiree in writing in the beneficiary portion of the life enrollment card.  Contingent beneficiaries can be named, however they have a claim only if there are no surviving primary beneficiaries.

Reductions in Insurance:  If an active member reaches July 1st following their 65th birthday, the face value of their life coverage will reduce to 65%.  When an active member retires, their coverage will be reduced to $5,000 if they are on the New Life Plan.  If they are on the Old Life Plan at the time of retirement, the coverage will be half of the active rate with a maximum of $20,000. Anyone hired on or after January 1st 2005, is not eligible for life coverage at retirement. 

Accelerated Living Benefit Rider: In the event that an employee of ISU is diagnosed as terminally ill, and that illness or condition can reasonably be expected to result in death, a portion of the death benefit may be paid to assist that person with medical bills and/or final expenses.  The portion payable is 80% of the face value of the Basic life policy as of the date the claim for benefits is submitted.  Death benefits will be reduced if the accelerated benefit is utilized.

Conversion Privilege: The life insurance coverage contains a conversion privilege that allows you to pick up some or all of the life insurance coverage dropped by ISU after your resignation/termination. You have 30 days from your resignation/termination date in which to enroll.  The coverage contract is between you and UNUM -- rates are based upon age.  The premium is paid in full by you.  Thus, the premium is higher than that paid by ISU, but the coverage is not dependent upon medical evidence. Coverage is approved if premiums are paid within 30 days of the coverage ending with the University.  Coverage from the University will terminate at the end of the month in which you terminate/resign. Faculty resigning at the end of the spring semester may keep their coverage through August 31st; Faculty resigning at the end of the fall semester may keep their coverage through December 31st, unless an earlier cancellation date is requested.