Life Insurance : Full-Time Employees
Information for: Full-Time Employees
Life insurance is provided to FIT full-time employees by The Hartford. For details about this coverage please refer the Basic Term Life Insurance and Accidental Death and Dismemberment Plan Benefit Certificate and the Supplemental Term Life Insurance Plan Benefit Certificate.
Basic Term Life Insurance and Accidental Death and Dismemberment Insurance (AD&D)
Effective the first day of employment, you receive Basic Term Life Insurance and AD&D coverage. Coverage is equal to your base annual salary rounded up to the next multiple of $1,000, if not already a multiple of $1,000, to a maximum coverage amount of $250,000. For example, if your annual earnings are $44,331, your Basic Term Life Insurance coverage amount would be $45,000. AD&D coverage is provided in an amount equal to your Basic Term Life Insurance coverage amount. You will be automatically enrolled in both plans and you are not required to pay a premium for this coverage.
The amount of Basic Term Life Insurance coverage and AD&D coverage for employees who initially become covered at age 70 and over is computed differently. The amount for employees age 70 and over will be 65% of the amount determined above. The amount for employees age 75 and over will be 50% of the amount determined above.
You must name a beneficiary for your basic term life insurance and AD&D insurance by completing a Beneficiary Designation Form. You may update your beneficiary designation at any time by completing the same form and submitting it to a benefits representative.
The Hartford’s Travel Assistance and Identity Protection Services are also provided to you at no cost.
Imputed Income on Basic Term Life Insurance Coverage
The first $50,000 of Basic Term Life Insurance coverage is considered a tax-free benefit. However, the IRS requires employers to tax employees on the IRS-determined value of the amount of employer-paid life insurance coverage which exceeds $50,000. The IRS-determined value is called Imputed Income.
The amount of Imputed Income is calculated based on IRS Code Section 79 Uniform Premium Table I (see chart below), your age on 12/31 in the current calendar year, and the amount of your Basic Term Life Insurance coverage in excess of $50,000. The Imputed Income amount is added to the second paycheck of each month and is subject to all payroll taxes. It is also reflected annually on your Form W-2 as additional income for the calendar year.
The current IRS Imputed Income rates for coverage amounts in excess of $50,000 are as follows:
Age -- Monthly Cost per $1,000 of Coverage (MC per 1K)
Under age 25 -- $0.05
25 to 29 -- $0.06
30 to 34 -- $0.08
35 to 39 -- $0.09
40 to 44 -- $0.10
45 to 49 -- $0.15
50 to 54 -- $0.23
55 to 59 -- $0.43
60 to 64 -- $0.66
65 to 69 -- $1.27
70 and Over -- $2.06
Supplemental Term Life Insurance
Within 31 days of your date of hire, you have the opportunity to enroll in the Supplemental (additional) Term Life Insurance Plan with The Hartford which provides term life insurance over and above the amount of Basic Term Life Insurance coverage provided by the College. If elected, you will pay the full cost of the supplemental coverage on an after-tax basis through payroll deductions. To elect the Supplemental Term Life Insurance coverage, you must complete the Supplemental Life Insurance Election Form and submit it to a benefits representative. You may elect Supplemental Term Life Insurance coverage equal to one, two, three, or four times your base annual salary, up to a maximum coverage amount of $500,000. The first $250,000 of Supplemental Term Life Insurance elected within 31 days of your date of hire is automatically approved. Any amount which exceeds $250,000 will require the completion of a medical questionnaire, which you would submit directly to The Hartford and is subject to their approval.
Opportunities to Enroll In or Make a Change to Supplemental Term Life Insurance Plan Coverage
If you did not elect coverage in the Supplemental Term Life Insurance Plan within the first 31 days of your employment, you may elect coverage during the Annual Benefits Open Enrollment Period. You may also elect to increase your coverage during this period which occurs in November of each year. However, you will be required to complete a medical questionnaire for any amount of coverage, which you would submit directly to The Hartford and is subject to their approval.
If you experience a Qualified Life Event as defined by the IRS (e.g., marriage, birth of a child, divorce), you may elect to change the amount of Supplemental Term Life Insurance coverage subject to the terms of the Plan. Requests must be made within 31-days of the Qualified Life Event.
Voluntary cancellation of the Supplemental Term Life Insurance Plan may be done at any time during the year. Your coverage will remain in effect through the last day of the pay period in which your last supplemental term life insurance contribution is deducted.
Reductions in Life Insurance Plan Coverage
Basic Term Life Insurance Plan coverage and AD&D coverage is subject to the following reductions:
1) On January 1 following the year you attain age 70, your benefit amount will reduce to 65% of your base annual salary that was in effect on December 31 of the previous year, rounded up to the next multiple of $1,000, if not already a multiple of $1,000.
2) On January 1 following the year you attain age 75, your benefit amount will reduce to 50% of the base annual salary that was in effect on December 31 of the previous year, rounded up to the next multiple of $1,000, if not already a multiple of $1,000
Supplemental Term Life Insurance coverage terminates when you attain age 70.
Please note: When you experience a reduction in coverage, you will have the opportunity to convert the coverage amount that you have lost to an individual policy with The Hartford without completing a medical questionnaire. For more information, please contact a benefits representative.