Life Insurance - Human Resources at Ohio State
Life Insurance
Ohio State provides access to exceptional benefits that support your health and financial goals as part of your total rewards package. Life insurance gives you and your family financial security. A variety of life insurance options are available. The university pays the full cost of Group Term Life Insurance (GTLI) for eligible faculty and staff.
Eligible faculty and staff may choose to purchase additional insurance for themselves, spouse and/or children at group rates through the Voluntary Group Term Life Insurance (VGTLI). If you are unsure whether or not you are eligible for this benefit, go to Benefit Eligibility.
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Life Insurance Details
As an eligible Ohio State employee, you are automatically enrolled to receive university-paid life insurance coverage based on your annual base salary. GTLI provides coverage in the amount of 2.5 times your annual regular base pay, to a maximum of $250,000 (subject to the age reduction formula). Ohio State pays the full cost of this benefit. The benefit is administered by Minnesota Life, an affiliate of Securian Financial.
Eligible employees must designate beneficiaries. Go to Workday and click “Change Beneficiaries” under Benefits to change your designated beneficiaries at any time.
Accidental Death and Dismemberment Benefit
In the event of death due to an accident, this benefit provides an additional 2.5 times your annual regular base pay to a maximum of $250,000 (subject to the age reduction formula). This benefit provides for one-half of the GTLI (subject to the age reduction formula) for the loss of one body part (hand, foot or eye). In the event of the loss of two or more body parts (hand, foot or eye), this benefit provides the full value of the GTLI benefit (subject to the age reduction formula).
Accelerated Death Benefit
In the event of a terminal illness diagnosis with a life expectancy of 12 months or less, this benefit provides for an early payment of up to 100 percent of the life insurance amount. If a terminal illness is diagnosed, notify the Human Resources Customer Service Center immediately to apply for this benefit.
Age Reduction Formula
The GTLI benefit for employee and spouse coverage is subject to age reduction in accordance with the following table. Age reduction will apply during the pay period containing the covered individual’s applicable birthday.
| Age of Employee | Amount of Insurance |
|---|---|
| 65 | 65% |
| 70 | 40% |
| 75 | 28% |
| 80 | 20% |
Tax Implications
Under section 79 of the Internal Revenue Code, the university is required to report the imputed cost of any employer-provided life insurance benefit that exceeds $50,000. The imputed cost is calculated using the IRS Premium Table. You can view the IRS Premium Table and information on group term life insurance in IRS publication 15-B.
If you wish to avoid this additional taxable income, you may waive GTLI by completing a Group Term Life Insurance Waiver form. To enroll in GTLI at a later date, medical Evidence of Insurability (EOI) approval by Minnesota Life will be required. Consult your tax advisor or the IRS for additional information about the taxability of life insurance benefits.
You may purchase Voluntary Group Term Life Insurance (VGTLI) coverage for yourself, your eligible spouse and/or dependent children up to age 26. This coverage is in addition to the amount provided to you by the university under Group Term Life Insurance. You must be enrolled in GTLI to be eligible to enroll in VGTLI coverage. You pay the full cost of VGTLI coverage. This benefit is administered by Minnesota Life, an affiliate of Securian Financial.
You may request coverage up to the maximum amount. The amount over the guaranteed issue amount is subject to evidence of insurability (EOI) and is effective upon approval by Minnesota Life. You may apply for the coverage in the following amounts:
Employee
- 1 to 8 times salary, to a maximum of $1,000,000
- Beneficiary designation under VGTLI coverage is the same as GTLI coverage
Spouse
- $25,000 to $300,000 in $25,000 increments
- The employee is the beneficiary of VGTLI spouse coverage
Dependent Children
- $5,000 to $20,000 in $5,000 increments
- The employee is the beneficiary of VGTLI child coverage
- All eligible dependent children are covered under one plan at the same premium rate
Guaranteed issue
You may enroll for a certain amount of insurance without EOI. Guaranteed issue amounts are as follows for coverage applied for within the 30 days of the initial eligibility period. Refer to the Plan Document for Guaranteed Information specific to a qualifying status change.
- Employee: 3 times base salary, not to exceed $500,000 if under age 65
- Spouse: $50,000
VGTLI coverage for children can be added at annual Open Enrollment without EOI.
Evidence of Insurability
Evidence of insurability, approved by Minnesota Life, is required for:
- Elections greater than the guaranteed issue amounts
- Elections made more than 30 days after initial eligibility or a qualifying status change
Age Reduction
The VGTLI benefit for employee and spouse coverage is subject to age reduction in accordance with the following table. Age reduction will apply during the pay period containing the covered individual’s applicable birthday.
| Age of Employee | Amount of Insurance |
|---|---|
| 65 | 65% |
| 70 | 40% |
| 75 | 28% |
| 80 | 20% |
Beneficiary Designation
Beneficiaries are the person(s) designated to be paid life insurance benefits upon your death. Beneficiaries for VGTLI are the same as for GTLI. Go to Workday and click “Change Beneficiaries” under Benefits to change your designated beneficiaries at any time.
Continuation Options
Group term life insurance and voluntary group term life insurance coverage ends upon your termination from the university. You may be able to continue all or a portion of your insurance or convert to an individual policy. If you wish to port or convert your coverage, you can apply directly to Minnesota Life. You must apply and pay the first premium within 31 days after your Ohio State coverage ends. For more information, contact Minnesota Life at (866) 293-6047.
Post-retirement benefits are available only to faculty and staff who have 10 years of continuous Ohio State service in at least a 50 percent FTE regular appointment at the time of retirement.
If you retire before age 70, you may continue your GTLI coverage (up to $200,000 maximum) after retirement at your expense. You pay a quarterly or annual premium to the university. This benefit may be continued until age 70.
If you become re-employed with Ohio State in an eligible position, your quarterly or annual premiums will cease and you will automatically be enrolled in GTLI as an active employee. You should contact HR Connection to stop retiree coverage and your premiums or to re-enroll if become ineligible as employee and meet all other retiree eligibility criteria.
Retired before age 70
If you retire before age 70 and choose not to continue this coverage, you may convert coverage to an individual life insurance policy within 31 days of retirement date. Premium amounts are determined by and paid to the life insurance vendor.
Retired after age 70
If you retire after age 70, you may convert your GTLI coverage to an individual life insurance policy (up to $200,000 maximum). Premium amounts are determined by and paid to the life insurance vendor.
A university-provided post-retirement life insurance benefit is available to:
- Those who worked at least 10+ years of continuous Ohio State service in at least a 50% FTE regular appointment at the time of retirement and eligible for retirement benefits under any retirement program administered by the State of Ohio.
- Those who do not continue Group Term Life Insurance at retirement
- Those who reach age 70 (when retiree Group Term Life Insurance coverage ends)
The benefit amount is based on your years of continuous service in an eligible appointment at the time of retirement and is payable to your beneficiary(-ies) as follows:
- 10–14 years of service: $2,000
- 15–19 years of service: $3,000
- 20–24 years of service: $4,000
- 25 years of service or more: $5,000
This is intended to be an overview. Refer to the Plan Document for complete information. In the event the information on these pages differs from the Plan Document, the Plan Document will govern.
