1. University-Sponsored Group Term Life Insurance

A life insurance plan for active UNI employees where upon death, assets will be paid to a designated beneficiary. Principal Financial Group is the insurer of our university-sponsored life insurance plan. For more information about this benefit you may visit the UNI Principal Portal.

Non-temporary Employee Eligibility

• Must work at least half-time (20 hours per week) or more.
• Must be appointed for nine (9) months or more.
• Participation is automatic and is effective based on the event date, coverage begins the first day of the next month.

Coverage

Life insurance coverage amounts are based on the employee’s University fringe benefits salary and rounded to the nearest $1,000 using general rounding rules.

Each coverage amount is subject to an age reduction. Please view respective coverage manual for details.

University-Sponsored Group Term Life Insurance Premiums

Premiums for the university-sponsored group term life insurance, including accidental death and dismemberment, are paid by the University of Northern Iowa.

Accelerated Benefits

If conditions for an accelerated benefit are met, the employee may qualify to receive a portion of their life insurance benefit prior to death. For more information, please review the Coverage Manual for your employee group.

*Planning for Tomorrow: Making a Change to Your Life Insurance

• Reducing your life insurance coverage can have a significant impact on your family/beneficiaries.
• You may only opt-in/opt-out of coverage during the Open Enrollment period.
• You will be required to complete a proof-of-good health questionnaire if you want to re-enroll in your calculated budgeted salary life insurance coverage.
• Principal Financial makes the final determination of eligibility to re-enroll in your calculated budgeted salary life insurance coverage.

Taxable Life Insurance/Imputed Income

• Per IRS regulations, any life insurance coverage amount greater than $50,000 will be taxable to the employee and will be subject to Medicare and Social Security taxes. This amount is reflected as "Txbl Life Ins" on the employee’s UNI payslip each month.
• To view the calculation formula and rates visit page 14 of the IRS Publication 15-B.

Beneficiary Information

• Once eligible, employees will need to access the Benefits Self-Service System and complete the beneficiary enrollment. Benefits will be paid to the beneficiaries on file upon your death.
• If the listed beneficiary is not living at the time of the employee’s death, benefits will be paid to the employee’s estate, spouse, child(ren), parent(s), or other persons in the Group Policy.
• Employees can update their beneficiary information at any time.

2. Voluntary Term Life (VTL)

This optional life and accidental death and dismemberment (AD&D) plan offers additional life insurance benefits for the employee, their spouse or domestic partner, and/or child/ren.

Non-temporary Employee Eligibility

• Must work at least half-time (20 hours per week) or more.
• Must be appointed for nine (9) months or more.

Coverage Limits

If you enroll within 30 days of your hire date:

• Maximum election amount for an employee is $500,000 in $10,000 increments. 
• Maximum election amount for a spouse is $100,000 in $5,000 increments.
• Coverage is guaranteed for employees up to a maximum of $300,000, and for a spouse/domestic partner up to a maximum of $50,000 and no medical information will be required.
• If electing an amount greater than $300,000 for employees, and $50,000 for a spouse/domestic partner, a proof-of-good health questionnaire will be required and amount will need to be approved by Principal Financial.

If enrolling in coverage during the annual open enrollment period:

• Statement of health questionnaire will be required if electing an amount greater than $20,000, or increasing a current election by any amount greater than $20,000. Once approved, coverage begins on January 1.

**Spouse/domestic partner and child coverage cannot exceed 100% of the employee's coverage.

Premiums

• Premiums for VTL insurance are paid by the employee with after-tax dollars through monthly payroll deduction.
• The premium for VTL includes accidental death and dismemberment insurance.
• Premiums can be calculated for each coverage amount by viewing page four of the Group Voluntary Term Life Coverage document.

For more information on the premiums and coverage amounts, view the Benefits-At-A-Glance informational handout.

Dual Spouse Family Benefit Coverage

• You and your spouse/domestic partner must both be employed in benefit eligible positions.
• You and your spouse must elect at least $10,000 in coverage for yourselves.
• You may each elect VTL Child coverage for any qualified dependents.
  • Each VTL Child policy would be $10,000, equating to a total of $20,000 on each child.
• You are not eligible to elect spousal coverage for each other resulting in double VTL coverage.

VTL Insurance Age Reduction

Benefit reduces to 65% of the full benefit following at age 70 but less than age 75, and will further reduce to 50% of the full benefit at age 75.

When a Child Reaches Age 26

• Benefits will end the last day of the month in which the child turns age 26.
• A child may continue to be covered under the group policy after age 26 if you primarily support a dependent incapable of self-support as the result of a developmental or physical disability. To continue coverage, you will need to complete an Application to Continue Disabled Child and return to Human Resource Services. We will provide the application to Principal for their review and approval.
• To end coverage log into Benefits Self-Service and choose the option I Want to Cancel My Voluntary Term Life Policy.

Ending Coverage

• You may elect to not participate in the Voluntary Term Life insurance on a monthly basis through Benefits Self-Service by electing the option I Want to Cancel My Voluntary Term Life Policy.
• Coverage will be cancelled the first of the next month.

Beneficiary Information

The beneficiary information will be the same for your Voluntary Term Life Insurance as your Group Term Life Insurance unless you designate differently.

• To designate a separate beneficiary please contact hrs-benefits@uni.edu.
• If the listed beneficiary is not living at the time of the employee’s death, benefits will be paid to the employee’s estate, spouse, child(ren), parent(s), or other persons in the Group Policy.
• Employees can update their beneficiary information at any time.

3. Benefit Enrollment

Frequently Asked Questions

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