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Life and accident insurance

The university provides basic life insurance in the amount of one (1) times your annual salary.

If your death is due to a covered accident or injury, your beneficiary will recieve an additional amount through accidental death and dismemberment (AD&D) coverage. The payable amount of your AD&D benefit depends on the type of loss.

Cost of coverage

AU pays the entire cost of the basic benefit and enrollment is automatic. Your coverage is subject to actively-at-work requirements.

Please note that the premium for life insurance coverage in excess of $50,000 is imputed income. The IRS requires that the value of the premium of life insurance benefits in excess of $50,000 for federal income tax purposes be subject to taxation.

Optional life and personal accident insurance options

If you would like to supplement the basic life and AD&D insurance amount, you may purchase additional voluntary coverage through the university.

  • Optional life for you, your spouse or domestic partner, and your dependent children.
  • Personal accident for you and your family.

The optional life insurance complements your AU paid basic life insurance by providing you an option to purchase additional coverage in the event of your death.

  • The coverage amount can be 1, 2, 3, 4, or 5 times your base salary. The maximum election for employee optional life is $1,500,000.
  • You may purchase $10,000 - $100,000 in coverage for your spouse or domestic partner in increments of $10,000.

Optional life coverage rates for full-time employees and their spouses/domestic partners

Age Monthly Rate per $1,000

29 and under

$0.040

30-34

$0.045

35-39

$0.051

40-44 $0.089

45-49

$0.149

50-54

$0.230

55-59

$0.430

60-64 $0.660

65+

$1.225

How to calculate voluntary life insurance for you and your spouse/domestic partner

To calculate your cost for you or your spouse/domestic partner, select the amount of coverage you want and multiply it on the rate based on your age.

Sample calculation

Clawed Eagle is 36 years old and has a salary of $50,000. He is electing optional life coverage of $100,000 (2 times his salary). Clawed's cost of optional life insurance is: $100,000/$1,000 x $0.051 = $5.10 per month.

You may purchase life insurance for your eligible dependent children from live birth to age 26.

  • You may purchase $1,000 - $10,000 in coverage for your eligible dependent children, in increments of $1,000.

Optional life coverage rates for dependent children

Amount Monthly rate

$1,000

$0.12

$2,000

$0.29

$3,000

$0.34

$4,000

$0.46

$5,000

$0.57

$6,000

$0.68

$7,000

$0.80

$8,000

$0.91

$9,000

$1.03

$10,000

$1.14

The optional personal accident insurance complements your optional life coverage in the event of death due to an accident or covered disabling injury.

  • The coverage amount can be 1 - 10 times your base salary. If the coverage amount is not a multiple of $1,000, then it is rounded to the next higher multiple of $1,000.
  • The maximum election is $500,000.

This summary is provided for general information only since exclusions and limitations apply. 

Optional personal accident insurance

Coverage level Monthly Rate per $1,000

Single

$0.015

Family

$0.025

How to calculate optional personal accident insurance

To calculate your cost for you or your family, select the amount of coverage you want and multiply it on the coverage level rate.

During open enrollment, you may choose to enroll in optional life coverage for yourself or life insurance coverage for your spouse or domestic partner, or you may choose to increase your existing coverage.

For certain elections, a satisfactory Statement of Health will need to be provided to the insurance company before coverage can take effect.

For optional life coverage, a Statement of Health will be required if you are not already enrolled in optional life coverage, or you wish to increase your optional life coverage by more than 1 times your salary or to an amount which exceeds 4 times your salary or $600,000. 

For life insurance coverage for your spouse or domestic partner, a Statement of Health will be required if you are not already enrolled in coverage for your spouse or domestic partner, or you wish to increase coverage by more than $10,000 to an amount that exceeds $10,000 for your spouse or domestic partner

If you do not make an election during open enrollment, your current life and accident benefit elections will carry over to the next year. This includes optional life and personal accident insurance elections for you and your family.

Although you may not increase your coverage after open enrollment unless you have a qualifying life event, you may decrease or drop any optional life insurance coverage at any time during the year.

A primary beneficiary is the person, organization, trust, or entity you name to receive any benefits if you die.

A contingent beneficiary is the person, organization, trust, or entity you name to receive any benefits if the primary beneficiary is deceased.

Keep in mind that changes in your family situation, such as marriage, divorce, birth, or adoption, do not automatically alter or revoke your beneficiary designation. Therefore, it is important that you review your beneficiary designation from time to time.

Updates to life and accident beneficiary information can be made at any time by making changes on the myBenefits enrollment site.

Prudential

Evidence of insurability application status: 
888-257-0412
www.prudential.com/mystatus

Terms to know

Statement of Health

The Statement of Health, also known as Evidence of Insurability or proof of good health, is a questionnaire to be completed by you and your physician, if requested. It provides some basic health information to the insurer and is used in the approval process for your request to enroll in, or increase, certain life insurance plans. The Statement of Health must be approved by the insurance company before coverage can become effective.

To submit a Statement of Health, print and complete the form and mail or fax it to Prudential at the address or fax number that appears on the form. Prudential will make its determination based on your medical information and may request additional medical information or tests. Once reviewed and approved, Prudential will send a letter to your home confirming coverage.

Statement of Health