Group Life Insurance
Group Basic Term Life Insurance
Eligibility
Faculty, Professional & Scientific and Merit employees with an appointment of 1/2 time or greater.
Note: Pre/Post Doctoral Associates are not eligible.
Enrollment
Eligible employees may either elect or waive the Life Insurance coverage.
- New hire
- Coverage is effective on the first day of the month coinciding with or following the date of employment, provided you enroll by your assigned deadline.
- Annual Open Change Period
- If you previously waived coverage, you may apply for the coverage during the open change period.
- You will be required to complete a Principal Statement of Health Questionnaire to apply for coverage.
- If approved by the underwriting, coverage will begin on the date determined by Principal Financial Group..
Certificate of Coverage (PDF)
Premiums
ISU pays 100% of the share for the Group Term Basic Life Insurance.
- Benefit over $50,000 is taxable
Policy Benefits
- Term life insurance and thus does not provide for a cash surrender value.
- Two group life options to choose from:
- Two(2) times your University annual budgeted salary rounded to the nearest $1,000 (capped at $250,000)
- $50,000 policy
- There is waiver of continued premium payments in the event of total disability.
- Value at the time of disability will continue until January 1st following your 65th birthday.
- Value will continue reduced by 65% until you no longer meet the definition of disability or when you turn age 70, whichever occurs first.
- No benefits will be paid for any disability that results from willful self-injury, self-destruction, while sane or insane/war or act of war/voluntary participation in an assult, felony, criminal activity, insurrection or riot.
- Employees who continue active employment after age 65 will have benefits reduced to 65% of scheduled benefit on January 1st following your 65th birthdate. The premium cost will be reduced accordingly.
- Retiree Life Insurance coverage of $4,000 if retired prior to July 1, 2021; must be enrolled for 10 consecutive years immediately preceding retirement.
- The group term basic life insurance policy is not a portable plan. Terminating employees are offered a conversion application.
Coverage During Disability
If you cease active work because you are totally disabled, you might qualify to continue your member life insurance. This continuation is called coverage during disability. The qualifications are indicated in the Summary Plan Document.
Accelerated Benefit
An accelerated benefit is an advance (before death) payment of a part of your member life insurance benefit. For qualifications see the Summary Plan Document/Group Life Insurance Booklet-Certificate.
Beneficiary Designation
If electing coverage, primary and contingent beneficiaries should be listed on the Principal Beneficiary Designation/Change Form. The beneficiary change form must be returned to UHR Service Center. Do not send to Principal Financial Group. The beneficiaries you designate for your Group Term Basic Life coverage will be the beneficiaries for your Voluntary Term Life Insurance unless you designate different beneficiaries for your Voluntary Term Life Insurance.
If you list more than one primary beneficiary, the payable benefits will be divided between the named beneficiaries as you specify. Contingent beneficiaries receive benefits only if all primary beneficiaries are deceased. If any beneficiaries are minors, under age 21 according to the Iowa Uniform Transfers to Minors Act, a custodian for such beneficiary must be named on the Principal Beneficiary Designation/Change Form for the proceeds to be payable to the beneficiary. If a custodian is not named, the funds may be paid out to whomever has assumed guardianship of the minor(s) or may remain in an annuity with Principal Financial Group until the child reaches age 21.
Life Insurance Portability/Conversion
If your employment with ISU ends, there may be options to continue your group life insurance policy directly with Principal.
Voluntary Term Life Insurance
Eligibility
- Faculty, Professional & Scientific, Supervisory/Confidential Merit or Merit employee
- 1/2 time or greater
- Enrolled in ISU's Group Basic Term Life Insurance plan
Why Purchase Life Insurance? Watch this short video to learn more.
Enrollment/Annual Open Change Period
New Hire Benefits Enrollment period (within 31 days of hire date)
- Guaranteed coverage up to 2 times annual salary
- Medical underwriting approval required for 3 or 4 times annual salary
- Effective 1st of the month following hire date
Annual Open Enrollment period
- Medical underwriting approval required if electing or increasing coverage (if denied, you will maintain the current enrollment level)
- Effective the later of January 1of the upcoming year or upon notification of approval from Principal Financial Group
- May enroll, increase or decrease coverage
- Voluntary Term Life Insurance coverage may be reduced or canceled at any time. Employees can request to reduce or drop coverage by completing a benefit change event in Workday. Changes in coverage will be effective the 1st of the month following the request date.
Coverage Options
You have four options for Voluntary Term Life Insurance Coverage, which are 1, 2, 3 or 4 of your budgeted annual salary (rounded to the nearest $1,000). Minimum coverage is the greater of 1 times your annual budgeted salary or $10,000, and the maximum is the lesser of 4 times your annual budgeted salary or $500,000. Guaranteed coverage is the lesser of 2 times your annual budgeted base salary or $500,000.
New Hires are guaranteed coverage for the levels of 1 times or 2 times your annual salary. Coverage for the levels of 3 or 4 times your annual budgeted salary, require evidence of insurability by completing the Principal Statement of Health Questionnaire. If coverage is denied you will maintain the 2 times your annual budgeted salary level.
Certificate of coverage for voluntary life insurance (PDF) administered by Principal Financial Group.
Premiums
- Automatic payroll deduction
- Paid with post-tax dollars.
- Premium rates are based on your age and your budgeted annual salary.
- Premiums will increase the month you attain the age of a new tier.
To calculate your premium rate:
- Round your annual budgeted salary to the nearest $1,000
- Multiply your salary by the level of coverage you are applying (1, 2, 3 or 4) then divide by $1,000
- Multiply that number by the cost of your age group
| Age Group | Cost Multiplier |
|---|---|
| 29 & Under | $0.07 |
| 30-34 | $0.08 |
| 35-39 | $0.10 |
| 40-44 | $0.13 |
| 45-49 | $0.20 |
| 50-54 | $0.30 |
| 55-59 | $0.46 |
| 60-64 | $0.70 |
| 65-69 | $1.19 |
| 70 & Over | $3.12 |
Policy Benefits
Accidental Death & dismemberment: You receive an additional benefit equal to your Voluntary Term Life Insurance amount for loss of life, hands, feet or vision as the result of an accident. Coverage includes payment for injuries arising from or during employment for wage or profit for insured employee. The loss must occur within 365 days of the accident.
Accelerated Benefit: An accelerated benefit is an advance (before death) payment of a part of your member life insurance benefit. For qualifications see the Summary Plan Document/Group Life Insurance Booklet-Certificate.
Disability: If you become totally disabled and all leave is exhausted, coverage will continue and premium will be waived for you. Coverage continues without premium payment until total disability ends or the June 30th following the date you attain age 70, whichever occurs first. No benefits will be paid for any disability that results from willful self-injury, or self-destruction, while sane or insane, war or act of war, voluntary participation in an assault, felony, criminal activity, insurrection or riot.
Beneficiary Designation
If electing coverage, primary and contingent beneficiaries should be listed on the Principal Beneficiary Designation/Change Form. Beneficiary change form must be returned to UHR Service Center. Do not send to Principal Financial Group. The beneficiaries you designate for your Group Term Basic Life/AD&D coverage will be the beneficiaries for your Voluntary Term Life Insurance unless you designate different beneficiaries for your Voluntary Term Life Insurance.
Note: You may change the beneficiary designation at any time during the year.
If you list more than one primary beneficiary, the payable benefits will be divided by percentage between the named beneficiaries as you specify. Contingent beneficiaries receive benefits only if all primary beneficiaries are deceased. If any beneficiaries are minors, under age 18 according to the Uniform Transfers to Minors Act, a custodian for such beneficiary may be named on the Principal Beneficiary Designation/Change Form for the proceeds to be payable to the beneficiary. If a custodian is not named, the funds will remain in an annuity with Principal Financial Group until the child reaches age 18.
Life Insurance Portability/Conversion
You may continue coverage for yourself until age 70 if you cease to qualify as a member. The employee must be less than age 70 and enroll within 60 days from the date they cease to qualify as a member. When insurance coverage terminates as an active employee, you may be eligible to continue insurance under a Group Life Portability Insurance Policy underwritten by Principal Financial Group. The Group Life Portability Policy will contain provisions that differ from the Group Policy. You will have the option to continue the insurance coverage under this option. If coverage is ported, there a several reasons the coverage would terminate, review the details on the Summary Plan Document.
Dependent Term Life Insurance
Dependent Term Life Insurance pays a benefit to you when a covered family member (spouse/partner/child) deceases. Faculty, P&S, Supervisory/Confidential Merit and Merit Employees enrolled in Basic Life Insurance are eligible for Dependent Life Insurance.
Eligible Spouse/Domestic Partner/Dependent Children
A spouse or domestic partner is eligible, if not a benefits eligible employee of Iowa State University.
Eligible dependent children include:
- Your biological or legally adopted children as well as stepchildren and foster
- Stepchildren and foster children must live with you (or spend “non-school” periods with you)
- Stepchildren not living with you may be covered if your spouse’s divorce decree stipulates that he or she provides coverage
- Children who are incapable of self-support because of a developmental or physical disability
Note: Dependent children may not be covered beyond the end of the month of their 26th birthday. It is the employee’s responsibility to drop coverage if all dependents become ineligible.
- Insurance may be continue beyond the maximum age for a dependent child who is incapable of self-support because of a developmental disability or physical handicap and is dependent on you for primary support. You must apply for this continuation within 31 days of the child reaching the maximum age.
Enrollment / Annual Open Enrollment Period
New Hire Benefits Enrollment period (within 31 days of hire date)
- Guaranteed coverage
- Effective 1st of the month following hire date
Annual Open Enrollment period
- Medical underwriting approval required
- Effective the later of January 1of the upcoming year or upon notification of approval from Principal Financial Group
- May enroll, increase or decrease coverage
- Dependent Term Life Insurance coverage may be reduced or canceled at any time. Employees can request to reduce or drop coverage by completing a benefit change event in Workday. Changes in coverage will be effective the 1st of the month following the request date.
Coverage Options/Premium
You have two options for Dependent Term Life Insurance coverage. Premiums are paid with post-tax dollars.
- Plan 1: $5,000 for your spouse/domestic partner and $2,500 for each dependent child. Monthly premium: $2.40
- Plan 2: $10,000 for your spouse/domestic partner and $5,000 for each dependent child. Monthly premium: $4.80
Policy Benefits
If you become totally disabled and all leave is exhausted, coverage will continue and premium will be waived for you. Coverage continues without premium payment until you no longer meet the definition of disability or June 30th following the date you turn age 70, or if only insuring your dependent children, when they are no longer eligible, whichever occurs first. No benefits will be paid for any death that results from willful self-injury, or self-destruction, while sane or insane/war or act of war/voluntary participation in an assault, felony, criminal activity, insurrection or riot.
Portability
When insurance coverage terminates as an active employee, you may be eligible to continue insurance under a Group Life Portability Insurance Policy underwritten by Principal Financial Group. The Group Life Portability Policy will contain provisions that differ from the Group Policy. You may have the option to continue the insurance coverage under this option. If coverage is ported, there a several reasons the coverage would terminate, review the details on the Summary Plan Document.
Beneficiary Designation
You will be the beneficiary for Dependent Term Life Insurance. No alternate beneficiary designations are allowed. If you are deceased, benefits will be paid to your estate.