Life Insurance

 

 

Basic Group Life Insurance

       

        Administered by Reliance Standard

        Policy # GL140918

        1-800-644-1103

 

All full-time and part-time faculty and staff are eligible for coverage under the Basic Group Life Insurance program, effective on the first day of active employment.  This benefit is paid in full by SMU.  In the event of your death, your beneficiary will receive 1-1/2 times your annual base salary,* up to a maximum of $750,000.  The benefit for Post-Doctoral Fellows is $10,000.

 

*The Amount of Basic Life Insurance will be reduced: (1) to 65% of the pre-age 65 amount at age 65; (2) to 45% of the pre-age 65 amount at age 70; (3) to 30% of the pre-age 65 amount at age 75; (4) to 20% of the pre-age 65 amount at age 80; (5) to 15% of the pre-age 65 amount at age 85; and (6) to 10% of the pre-age 65 amount at age 90.

 

Imputed Income

The IRS requires that the "value" of employer provided group life insurance in excess of $50,000 be reported as taxable income to covered employees.  The "value" is referred to as imputed income.  To learn how the imputed income is calculated, click here.

 

For more information please refer to the Group Life Insurance Summary Plan Description.

 

 

 

Supplemental Group Life Insurance

       

        Administered by Reliance Standard

        Policy # GL140918

        1-800-644-1103

 

In addition to the Basic Group Life Insurance provided by the University at no cost to you, you have the opportunity to purchase Supplemental Group Life Insurance.  By having enough insurance, you'll have peace of mind in knowing that your family's financial security is protected.

 

You may purchase Supplemental Life Insurance for yourself, for your spouse or domestic partner, and for your children.

 

  • As a new employee you can elect 1, 2, 3, 4 or 5 times your annual salary or $750,000 (whichever is less).  If you enroll during the new employee enrollment period, 3 times salary or $500,000 (whichever is less) is available on a "Guaranteed Issue" basis.  Any amount over the Guaranteed Issue maximum will not be effective until Reliance Standard approves your Evidence of Insurability (see instructions below).

 

  • You may elect up to $50,000 coverage for your spouse or domestic partner and $10,000 per child 6 months or older ($500 for children age 14 days to 6 months).  This coverage is not subject to Evidence of Insurability if they are enrolled during the new employee enrollment period.

 

  • You may purchase coverage for your spouse/domestic partner and children only if you elect coverage for yourself.

 

  • Supplemental Group Life premiums are deducted from your pay on an after-tax basis.

When and How Can I Increase My Coverage?

New Employee Wants Coverage Beyond the Guaranteed Issue Maximum

For coverage over the Guaranteed Issue (GI) maximum, you must complete the Evidence of Insurability (EOI) form and submit it to Reliance Standard at the address indicated on the form.  When completing the form, you must identify how much over GI you are requesting, answer all questions, and sign and date the form.  Missing information will hold up the processing of the application.  Reliance Standard will notify SMU Human Resources of any changes in coverage and your payroll deductions will be adjusted accordingly.

Employee Wants To Enroll For The First Time (After Initial New Employee Enrollment Period)

After the initial eligibility period expiries, any new enrollments are subject to EOI.  You must complete the EOI form and submit it to Reliance Standard at the address indicated on the form.  When completing the form, you must identify how much coverage you are requesting, answer all questions, and sign and date the form.  Any missing information will hold up processing.  Missing information will hold up processing of the application.  Reliance Standard will notify SMU Human Resources of any changes in coverage and your payroll deductions will be adjusted accordingly.

What If I Was Not Previously Enrolled and I Have A Qualified Life Event?

The only exception is a qualified Life Event (e.g., marriage, birth of a child, etc.)  In this case, the guidelines for new employee enrollment will apply.  You must contact Human Resources and make your election via Access.SMU Self-Service Benefits Enrollment within 31 days of the Life Event.

How to Calculate the Cost of Supplemental Life Insurance:

  • The cost of child(ren) coverage is $1.90 per month per family unit (regardless of the number of children covered).

  • To determine the cost of your coverage, divide your $ election by 1000 and multiply the result of the applicable rate to determine your monthly premium.

  • If you elect coverage for your spouse, do the same calculation, using his/her $ amount and the rate for his/her age.

Example #1: Employee elects $150,000 (3 x salary) at age 37 → ($150,000 divided by 1000 = 150 x .08 = $12.00 per month).

Example #2: Employee also elects the maximum $50,000 coverage for spouse who is age 34 → ($50,000 divided by 1000 = 50 X .06 = $3.00 per month).

Age Monthly Rate
Employee/Spouse Per Unit of $1,000
18-24 $0.07
25-29 $0.06
30-34 $0.06
35-39 $0.08
40-44 $0.12
45-49 $0.19
50-54 $0.31
55-59 $0.52
60-64 $0.83
65-69 $1.31
70-74 $2.84
75-79 $6.29
80-84 $19.17
85-89 $55.55
90-94 $214.83
95-99 $284.07

 

For more information please refer to the Group Life Insurance Summary Plan Description.

 

Reliance Standard Evidence of Insurability Form

Please note that it is not necessary for SMU to complete any part of this form.  Provide all information requested and mail the form directly to Reliance Standard.  Be sure to keep a copy for your records.  The policy number is GL140918.